Iwata explains sagging Wii sales
Lack of "strong software" to blame.
Nintendo president Satoru Iwata has admitted that sales of Wii "stalled" because the company was "unable to continually release strong software" and "unable to show a new game to become 'the next thing'".
"In the game market, once you've lost the momentum, it takes time to recover," he said at a Japanese press conference, in comments translated by Andriasang (thanks vg247).
Iwata also said that the situation had not changed significantly since the Wii's price was cut in the US, Japan and mainland Europe.
"With the price drop, sales returned to a certain level, but they just did not reach the level of last year around this time," he said. "We decided that it would be difficult to sell enough to recover from the poor performance of the first half of the year.
"In order to reach it [the 20 million units target], we will have to move quite a large quantity, but it's a figure we released after having felt the momentum returning."
Nintendo introduced the new Japanese Wii price point on 27th September, reducing the cost of the console by 5000 yen (£33 / €37). Sales did not initially appear to respond, but the launch of Wii Fit Plus had an impact, helping to effectively triple weekly hardware purchases in the month that followed.
In the US, NPD sales figures for October are not yet available, but the Wii sold 277,000 units in August prior to the price cut, and 462,000 in September, with the price on the other side of the pond also dropping on 27th September, from $249 to $199.
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Comments (71) Latest comment 2 years ago
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Can they keep expanding the demographics of people who want to play?
edit : (like what Jonsaan said)
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I have to agree with him that the Wii software support just isn't there. As a "hardcore" gamer, it has absolutely nothing that appeals to me, & if I want to get fit, I'll go walk the dog, which doesn't cost near £200 for the privilege
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On Nintendo, I guess like with every company that ever existed so far, profits can not grow every year. So calming the investors with the unspoken promise that something can be done about the decline in growth of profit is good for the shares.
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Though well, it's probably the truth. But I think even Nintendo is starting to realize that the so-called hardcore market is just as important as the casual market, apparently. If they thought they could just let it rot while they followed the casual, looks like they were wrong. Casual buyers are usually unreliable in terms of business. You need to build a proper customer base, one that will stick with you over time and difficulties. This is especially important for Nintendo, who, as a focalized company, can't fall back on other categories if there's a time of bad business.
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My point is that many families who just want to play Guitar Hero still tend to pick up the PS2 at a very low price - not just because of the price, but because they don't realise that the Wii is equally well suited to that task. I think that at the current stage, the PS2 is the main competitor for the Wii. I dont think the HD consoles are competing with the Wii on any level, really, they're aimed at completely different demographics.
I feel that you'd have to be pretty ill informed to get Modern Combat 2 for the Wii if you already own an Xbox 360, a PS3 or a decent PC. And if Modern Combat 2 is what you're primarily interested in playing, you'd ahve to be pretty deranged to get a Wii.
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Surely, in the middle of a recession, that they are making profit at all is something to be applauded?
Remember that Nintendo have not posted a loss in their entire operating history (to my knowledge).
As someone said, it's true that the "every man and his dog has a wii" argument seems daft compared to the 140m+ sales of PS2. But then PS2 has been out nearly a decade now, is cheap as chips, and has reached a price point where I am guessing that some families have one for each kid just so they don't fight over who gets to play what (and let's not forget how bad the ps2 failure rate was). Wii won't reach that impulse-purchase until much farther into its lifecycle, but with the Wii HD rumours I don't think it will be supported come the release of the next Ninty console. Nintendo has a history of dumping consoles as soon as their new one is out.
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It works the other way too. The PS2 is just as well suited as the Wii to the task, and it costs half or less. Wouldn't surprise me if the families chose the PS2.
That said... Sony's report today says that sales of the PS2 have fallen again. I doubt the PS2 is that much of a competitor nowadays.
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It's nearly the same as the PS3.
The software out for the wii is a joke.
My only regret is not selling it for €400 when i had the chance.
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yes. But i also think it's very difficult to create an image for a console that appeals to everyone alike. You go for a certain direction (at least for a certain time in the lifespan of the console) and then you are depending on it since all the awareness of the product and its games are in that area. Later when it's cheaper you can change that.
Wii started out a little cheaper and went straight for the broader audience, to go now back with the wii and recapture other areas is not easy and not likely imo due to the hardware of the console and the public image.
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Less than predicted profits affect shareprice, which is what it all boils down to at the end of the day. A company posting a loss can actually be viewed as a better investment than a company posting a profit, if the loss making company is doing so as part of a predictable plan.
Amazon was making a loss for over 2 years, but it was able to raise capital because its plan was sound. A company making less profit than expected could be on the way down (clearly Nintendo isn't on the way down, AND they probably predicted their own fall in profits, but I am talking generally).
When companies invest in other companies, they don't usually do so to make a quick profit, so they want to know that their money is safe long term and falling profits are not a good sign of the security that they desire.
I say again, Nintendo aren't going anywhere. I am just talking generally about SOME profit not necessarily being good enoguh in business.
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...still surprised they don't see the potential in Excitebots for a European release pre-chrsitmas ....considering how many Wii wheels are out there.
They really should have given some assistance to 3rd party marketing as well... not to help 3rd parties but for their own benefit. I would have thrown a chunk of cash at marketing the Black Wii alongside Dead space Extraction and Resident Evil Darkside Chronicles.
Nintendo and 3rd parties major oversight with the Wii is is that they seem to think mature/hardcore content doesn't need to be marketed to sell..but on Wii it does. You give something like RE Darkside Chronicles the same marketing budget as something like Wii Sports or wii fit..you'll see strong sales.
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Although obviously not done a Sega and made only really shit software.
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Amen to that.
It's so refreshing to see Nintendo finally admitting to their major mistake with the Wii. Sure they have the casual market appeased but they're not the ones that go out and buy loads of games. Nintendo have totally neglected the core gamer with the Wii, those people that grew up with the NES/SNES and moved up to the N64 and GameCube.
I'm one of them.
The Wii has been, and I hate to even say this, the most underwhelming console I've ever bought and 2009 has been a disaster as far as quality games are concerned. The Wii promised so much and has utterly failed to deliver beyond a few key exceptional titles like Zelda Twilight Princess (itself a GameCube title) and the superlative Super Mario Galaxy for example. The only reason I still have mine is for the next Zelda and Mario game otherwise it sits gathering dust. Sad really.
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EDIT: Tough crowd! That wasn't supposed to be my own sentiments, I like the Wii, I was pretending Iwata was a fanboy... jeez!
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These things are why they are that successful to begin with! When Iwata says "strong software", he means Wii Fit and Wii Sports, and he is only sorry that this year, they released less games like these that are similarly popular.
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No shit, Sherlock!
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Everything els is sub-par (especially compared to the Nintendo of old).
Mark me down if you like; but if you do then name* another all-out, balls-to-the-wall classic on this shitty system!
*Zelda doesn't count, since it's on the GameCube!
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these are all the games I want on the wii: Klonoa, Tiger Woods 2010, Little King's Story, Okami, Punch-Out!!, Resident Evil 4: Wii Edition, Resident Evil, Resident Evil 0, Fire Emblem: Radiant Dawn, Pro Evolution Soccer 2010, House of the Dead: Overkill, NPC! Pikmin 2, NPC! Chibi-Robo, No More Heroes, Animal Crossing: City Folk, Metroid Prime: Trilogy, Mad World, Bit.trip Beat, Super Paper Mario, Zack & Wiki, A Boy & his Blob, Metroid: Other M, Tatsunoko vs. Capcom, Dead Space: Extraction, Silent Hill: Shattered Memories, No More Heroes: Desperate Struggle, Fragile, Dragon Quest X, Monster Hunter Tri, Muramasa: The Demon Blade, Red Steel 2, New Super Mario Bros. Wii, Super Mario Galaxy 2, No More Heroes 2, Sin & Punishment 2, Bit.trip Void, The Grinder, Epic Mickey, Cosmic Walker, Dynamic Slash, Span Smasher, Line Attack Heroes, Illvelo, You, Me & the Cubes, Fatal Frame IV (fan translated), Pikmin 3, Radilgy
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Oh wait...
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I'm talking about system-defining games, era-defining games! The Wii doesn't have them! I'm talking about Ocarina of Time, Super Mario World, Metal Gear Solid, Final Fantasy VII, Goldeneye 007, Super Mario 64, Halo, Ico, God of War, Grand Theft Auto 3 (and VC & SA), etc.
The PS3 & 360 have COD4, GTA4, Fallout 3, Halo 3, MGS4, Uncharted 2, Gears of War, Oblivion, Mass Effect, BioShock, Batman Arkham Asylum, Street Fighter IV, LittleBigPlanet, The Orange Box, Burnout Paradise, etc., etc., etc.
Of course, some idiot's going to come along and say "Ha ha all those games are shit!"....
But the fact is, unless you're the stubbornest guy in the world, you've gotta admit that those games (plus lots of others I've failed to mention) stand head-and-shoulders above anything and everything on the Wii (excepting Super Mario Galaxy).
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Now, in Nintendo's case, they are doing something wrong - that is, they haven't put out any good games for a while. If they do understand that, and take action, next time the results will be better. It's true that they're still doing better than either Sony or MS, but to say that they are still awesome because they are making a profit, would be missing the point entirely. If a company said "oh well, who cares, we're still profitable", they would be hammered over and over by some smarter company. Instead, when something goes even just slightly wrong, you HAVE to take measures.
Iwata is a capable businessman, as he has shown several times now, so I'm sure he already knows what to do. A slip-up can happen to everyone. As long as it's not repeated.
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For a guy who doesn't even own a Wii yet, you're pretty confident of its quality. Go and buy one, put your money into it and its games - then come back to us. You'll feel differently, I suspect, once you invest in a machine that offers very little quality gaming by comparison to its peers.
The fact that you list a game like Epic Mickey on your wanted list shows that you're thinking in purely speculative terms and not objectively and from a real consumer's point of view. (For God's sake, we only just saw the first screenshots for that game
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It's still a shit system, though! Unless you're a granny or a soccer-mom!
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There are a number of third-party Wii games I'd love to grab but, in the main, for reduced prices. I get the feeling I'm far from alone in that and that's part of the problem with rubbish sales for some non-'Wiicasual' titles.
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"It's still a shit system, though! Unless you're a granny or a soccer-mom!"
So what? The other two consoles are shit, unless you are a nerd. Playing games is shit, unless you are a gamer. Drawing pictures is shit, unless you like drawing. Having sex with girls is shit, unless you are a hetero man, or lesbian.
Everything is shit, when you are looking at it from the opinion of someone who doesn't like it.
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Did you play the game?
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You could say that for pretty much the entire human race. Makes one wonder how we became the dominant species.
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I'm not predicting failure, far from it, they have pots of cash, many machine sales (which are more profitable than other consoles), and the DS is probably the strongest gaming platform out there (with virtually no competition). However, this could be the start of a decline which may see nintendo have to rethink their strategy somewhat.
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Oi you stole my joke (see the 4th post)!
Admittedly it wasn't that funny.
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I was going to point out that nintendo doing have control over the shit 3rd parties make.
I was going to list all the great "hardcore" games on the system.
.. Then i remembered i'd be wasting my breath and the bill gates fanboys would never listen because there's not a single grey and brown dull looking fps on the wii - so therefor it MUST be shit.
So i'll save my typing fingers and walk away from this thread to leave the xbots telling each other how shit the wii is and how great their system is - while furiously masturbating over the fact their system is "better" and "more grown up" - because thats what tweens do.
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That's fair enough ... I would never tell someone they shouldn't like the Wii. However, owning every current gaming system makes you something of a gaming nut (not meant critically) so you hardly fall into the category of average consumer. If you had to choose one console from 360, PS3 and Wii ... you would never, in a million years, choose the Wii if you were an 'all-round' gamer who wanted the best of every genre.
That's not to say, however, that it shouldn't be in the library of a hardcore gamer ... of course it should. But those hardcore gamers are spending hundreds and hundreds of pounds/euro on a a handful of quality games. As a body of work, the Wii is a huge disappointment and it's a pity developers didn't do more with it.
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/enjoys both.
Ditto.. if anything i use the 360 more (check my gamerprofile for proof).. Doesnt mean i can stomach reading all this nonsense from 360 owners each time i open a wii thread...
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@Farticus Max:
I totally agree with your point about demos. Problem is this, IMO, is deeply routed in Nintendo's flawed design of the Wii. No hard drive, means no space for demos to be stored, and I believe having them would have helped 3rd parties sell their games significantly better. This is Nintendo's biggest problem, that they design their consoles with themselves in mind first, and everyone else last. We need only look at the amount of support they have had since the SNES era, to see where their stubborn arrogance has got them, not very far (beside profit).
When MS and Sony are designing their consoles, they consult the leading publishers and developers in the industry, about what they would want to see from a console. Nintendo however, to the best of my knowledge, do not take this approach (and if they do its contrived at best) and seem to work in an alien vacuum, where only they can breathe and matter. This kind of thinking has hurt them over the last 15-16 years, and they still haven't woken up to the fact, that 3rd parties have a lot of power to help or doom a console. In Nintendo's mind, so long as their games sell and work well, to hell with everyone else. That attitude won't fly with gamers or developers, especially after all these years of it.
We need only look at how PS3, has been suffering for ages this similar way, because Sony designed PS3 in such an awkward way (like an impossible princess of sorts to develop for, and get the best of). Wii is at the lower end of the scale and PS3 the higher, with 360 being at a nice middle, hence why so many games are developed for it, over the other two. Any developer has to weigh up these options in their costs, aswell as development time, demos, release date etc. 360's PC like user friendlyness, has come through for it here in a big way.
I've always been an advocate, that while Wii is ground breakng in its own way, that the bloody thing needed a Nintendo branded hard drive, to back it up and make it better for everyone. Now, while Nintendo have allowed for Wii to support 32gb SD cards as said at E3, Nintendo never bloody sells this fact in ads anywhere. If its not advertised, the masses are clueless, and if the masses won't come, developers are less likely to bother posting demos of their new games to download for Wii, and thus in turn, hardcore gamers will bail out too, since 360, PC and PS3 offer better options like this for gaming. Another big jumbojet hole in Nintendos thinking, which still remains open, out of sheer stupidity.
This is not Wii hating, it's just facts based on Nintendo's past and the hurdles they set for themselves to trip over, when the true solutions to problems are so easy to fix, but their myopic, pin whole of japanese stubborness, still blinds them, to being so much better than what they currently are. They always expect to dictate to us how things will be, but they forget, you should mould your business around what the customer wants too, not want you want to give them all the time, be they developer, publisher or gamers. A game of give and take, as they say, that's the games industry at large, in a nut shell.
The light of hope, that Nintendo will wake up and tackle these problems head on, dims for me, as every day passes. And to be honest, I've gotten tired of waiting for them. I can only devote, so much of my time on this planet to games, and I'd love for some of that to be also spent with awesome Nintendo games, but their lack of vision with Wii and to an extent DS, just baffles me and hurts such options. As much as I love my DS, even that I know could be better than it is. I pray that the rise of Apple and the iPhone, will give them the swift kick they need. Seems to be working so far.
Like many have said, I also think its only a matter of time til we see a Wii 2 HD. I still don't have a Wii yet, but I'll make up my buying mind once I know they spec of it. My hope dips more at the awful thought, that it still won't match PS3 or 360, the way we'd all like it to.
Lastly, as for Nintendo, I don't think they've been the same since they changed management around a few years ago, just like Sony did. Its true that their games output has dropped significantly, and they new IPs are next to none that impress or appeal. They really need to wake up, or end up like Sega.
So, next time Nintendo, you want stronger software support? Gives us a nice hard drive, better console tech, HD options and better online and 3rd party support, and low and behold, the people will flock to you. Until then, continue to feel the pain.
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* = if you like shooters.
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Of course I look forward to Red Steel 2 and Call of Duty: World at War (it's over 2 years old come on!) but that's like a fly-turd in the universe compared to all the shiny, sparkly stuff that's coming out for Sony and MS behemoths. My girlfriend can have my Wii, if she cares. I have only one thing to say, PS3 Slim....Christmas sale=happy gamer (yes Nintendo, gamers! remember those?)
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my 13 year old brother, who thinks things are 'gay', agrees with a lot of you btw
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Eh? Considering nintendo have been making games consoles for longer than the other 2 put together.. i'm pretty sure they'd understand that.
You on the other hand dont seem to understand what a 3rd party is - and why nintendo has nowt to do with them
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>xbox360 for about the same price, with its far far superior software library*
* = if you like shooters.
*= if you like driving games
*= if you like RPGs
*=if you like Flight Sims
*=If you like RTS
*=If you like platformers
*=If you like music games
*=If you like quirky indie games
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Link.
The PS3, 360, & heck, plus the PS2 have much better games than the Wii (more than just 1st party games), & now that both MS & Sony are coming out with both Natal & the motion controller for PS3 & 360, it's going to bite the Wii in the dust, especially when both of those systems have better graphics. They'll probably won't succeed with that, but still.
Plus should they bring out a new console next year, or even in 2011, it's really going to bite Nintendo in the rear. Nintendo needs to wake up & start putting out better games out there, & not just rehashes of Mario, Zelda, Metroid, & Wii Fit. Plus they need to get their 3rd party developers to develop good games for the system instead of just having remakes, PS2 ports, & more shovelware. Plus have advertising for them. That's how more games sell. We got their fanbase who admitted that they haven't touched their Wii's in a year or so & are just having it as a dust collector. Plus there are others who have either sold their Wii's off & have bought themselves either a 360 or a PS3, or that they have just abandoned them altogether. It's just like the PSP all over again during their first few years.
Plus the reason why they even dropped the price of the Wii is because they realize that their hype is dying & that Sony is starting to take over in the sales category. Especially in Japan. And it's going to take more than just a price cut to put them back on top in sales each month. They need better games. Even Satoru Iwata admits it, & it shouldn't have took them 3 years to figure that out. They should've thought of that after the Wii's 1st year.
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With the other makers, there is typically a release season, where you get high potential game, after another. So, it's a fair bet that you're going to be able to play something that you like, soon. If you're not already. Even "quiet" periods aren't as bad, because they've got the download platforms able to offer all-new games, add-ons, and a selection of past hits, and they're great at getting the word out, and those games are capable of grabbing headlines. Nintendo's don't as often.
You need to buy the console, in order to play them...The problem being, that you need software to be there, in good succession that there is some kind of momentum. Otherwise, who will care about games they don't have the machine to play, or motivation and interest to buy?
Another thing, aside from N not focusing sufficiently on traditional games players, that holds them back in that regard, is that (and they're not the only ones) where the demand is for a new game in whatever popular series, Nintendo release it, to DS. When a Wii game was more desired. Is it as high importance to franchise fans, if it ends up on the portable? I think that outside of games that urge you to buy the system to play them, that it becomes a game that is far easier to disregard, if it's on a portable, and you don't yet own the system in question.
In the end, they'd probably be better working on new things - than attempting to satisfy demand for IP x, in this way.
If they were adamant that they wanted to regain the appreciation of lapsed players of their games, then they could do more with the classic controller - release more of them, and encourage developers to consider using it as an alternate. Come up with less obvious, attention provoking ways to use the wii remote in games, that would focus on improving immersion, and enriching the experience, beyond obvious things like swinging a bat.
If they were determined, perhaps the answer would be to create a recognisable, first party brand, specifically tailored to their wayward audience - much like Sony has done, with its Junior line of Buzz games, that I'm assuming they've enjoyed some success with - It clearly worked with Brain Training, for N itself, in the past. If they want to catch the greatest percentage of fish, they'd best ensure they don't set out to sea, with gaping holes in their nets!
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Is Sony taking over in the sales department? They had a strong September, which is understandable when they relaunched a re-designed, re-branded and re-priced PS3. Even then it still didn't beat the Wii by much; it didn't beat the 360 by much either, and ODST ran away with the software sales numbers.
I'm psyched to buy a PS3 now it has a library of strong exclusives and an attractive price and design but these numbers are telling (gaming related divisions):
Nintendo profits this year: $1.13 billion
Sony losses this year: $1.06 billion
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But unlike Sony and Microsoft, who both have gaming as merely a branch, their other sectors can support them like on the original X-box; Nintendo is solely a gaming company. They cannot withstand as much as the other two.
So unless Nintendo plus out some amazing miracle, I think they'll be joining Sega in the game development industry, within the next console or two. It's only a matter of time; the market has never supported 3 consoles for very long, 2 has generally been the number.
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Glad to see they realise that their software releases are pretty weak recently. I'm more interested in what they'll do about it, however. There are a few good games (IMO) in the pipeline but I'm expecting quite a long wait for them.