My comment about the Wii U being a "mistake" from which the company "may not recover" was intended to say that if Wii U sales don't materially improve, Nintendo is unlikely to be profitable. They have around ¥1 trillion (around $11 billion) in cash, so they aren't in danger of going out of business for decades. However, if they aren't profitable, they aren't doing a good job for shareholders.
To elaborate, if the Wii U is not generating profits, and if the 3DS is not generating profits, the only thing that will generate profits is software. Nintendo is ensured high sales of its proprietary software, but it makes the most money on its royalty business, collecting fees from third parties for the privilege of letting them put out games on Nintendo platforms. Publishing (software) revenues peaked at ¥675 billion in FY:09, and are on track to come in around ¥235 billion this year; my call is that if hardware sales don't materially improve above current combined levels, software sales are unlikely to materially grow. If software sales don't materially improve, losses or break even will become the norm. Nintendo will not "recover" to its formal highly profitable glory.
Full post here
To elaborate, if the Wii U is not generating profits, and if the 3DS is not generating profits, the only thing that will generate profits is software. Nintendo is ensured high sales of its proprietary software, but it makes the most money on its royalty business, collecting fees from third parties for the privilege of letting them put out games on Nintendo platforms. Publishing (software) revenues peaked at ¥675 billion in FY:09, and are on track to come in around ¥235 billion this year; my call is that if hardware sales don't materially improve above current combined levels, software sales are unlikely to materially grow. If software sales don't materially improve, losses or break even will become the norm. Nintendo will not "recover" to its formal highly profitable glory.
RSS Feeds:
@Aaronrules380 This.
Also the PS360 weren't profitable for about half their lifespans, but they got there in the end. Why is the Wii U 'so doomed' thus relating it to how last gen played out after just a quarter and a bit of it's first year?
He isn't completely wrong here, but the Wii U JUST came out. I already have three titles, so they already profited from me and most people who bought the Wii U also. I know it's not doing to well in sales, though. Which is their main problem.
You know, I think you can actually learn more about Patcher by not reading his articles instead of reading them.
I love how Pachter went on NeoGAF to explain himself.
I don't know how he keeps his job as an analyst as I don't know how he can be taken seriously by investors.
Not even that, we're not even a quarter of the way in and it's already doomed. The PS3 had one hell of a time for it's first two entire years before it kicked up. Metal Gear Solid 4 wasn't able to revive it during that time. That was -THE- game everyone called it's saving grace to stardom, and nothing.
Yeah, all we need is THE game to kick off the Wii U sells
Kind of a pity those will be in the fall season
Hopefully if there's boycotts for both successors of PS3 and 360 because online only gaming (ala PSP go) and the business killing anti-used game measures - the Wii U will sell a boatload
all it takes is for Sony to goof when they announce that PS4
1. will be online only (ala PSP go)
2. won't play used games
Exactly.
Articles like this are only flying out because the TPTB and the PS360 fandoms have nothing better to do whilst waiting for their next-gen systems to be unveiled and released. I imagine they'll slow down abit after tomorrow's PS4 unveiling [until E3 rolls 'round anyway].
Oh no, it's not profitable, it's being canabalized by iPads, since they are the same species.
That's... Not what I meant. It actually proved that a system doesn't need -THE ONE- game to get profitable, they need more than that. Though we're getting a slew of pretty good and promising titles in the next few months, then more in Fall. With LEGO City, Pikmin 3, Monster Hunter 3 and Wii Party U for the casual gamers in March onward. Then with the potential Mario U or Mario Kart U, along with Zelda HD and Rayman, it shows a promising array of games to get the console for. Though we all know we still got SSB4 in the cards, which many are waiting to grab the system for.
@VinceFox
The game is Rayman Legend in march, what else? Thank you so much Ubi to care about us...
still, all we have to do is wait for Sony and Microsoft to goof on their successors by 100% confirming the online only/anti-used game measures on their successors and we'll see a sweet boycott on both
This way the Wii U will benefit from this
True, We have games that MIGHT push the system faster than it is now down the pipeline but we must think back to E3 2012 and plan our way to fix the balance within the industry
Yes, It does involve our wallets and Yes, it does mean we should make the Wii U version of Rayman Legends sell like gangbusters despite the heinous act
but, We must make sure the Wii U must prosper as much as the Wii did and more -- at any cost.
alright, alright, we get it, let it go now....
Blacklist his trash opinion from the website k thanks!
Lol what a dumb ass, every time I hear him say anything (about any console) it's stupid
Thanks Nostadumdass.
i talked to Pachter's mother the other and she was telling me why HE was a mistake...
This is funny, cause I just got done watching the movie.
If anyone cares enough, you honestly should petition RMC to quit posting EVERY big of Pachter/Nintendo Opinion that pops up. It's NON news, and rather annoying.
Then I guess we'll have to see how this plays out in the coming months.
@ *referring to bold*
Though, this is only wishful thinking, I really don't prefer boycotting, yet. As I said, we just have to see how it plays out first before doing such a thing, if the rumor about Sony and Microsoft's next-gen consoles are true or not.
I'm pretty much just going to post this from here on out every time a Pachter blurb is posted here on Go Nintendo because I feel it pretty much precisely and concisely describes him in a nutshell and quite frankly, there's nothing else that needs to be said or time wasted on him or his delusions of grandeur anymore.
In other news a new WWE Title was shown off on Monday Night Raw. It is a far more interesting news story than this.
Man. Far too long in coming, and what they finally unveil? Looks only moderately LESS like total s*** than the Cena-brand Spinner belt. It honestly looks re-goddamn-diculous.
It would have cost them NOTHING to just bring back the "Undisputed" WWE Championship belt model, and it would have been far preferable to this silly looking "GIANT W" thing.......
I thought the 3DS was being sold at a profit now? Even if it isn't yet, how long was it before the PS3 and Xbox 360 were?
This hysterical doom and gloom is just too much.
Agreed make this happen someone start a change.org petition for RMC to remove Pachters post from this website for all future BS that he spouts out his mouth. His opinion doesn't matter to a majority of us negative or not hes a natural born dumb ass.
Yes because we all know Nintendo is incapable of producing a "killer app" type of game. Oh wait...You mean they're only one of the more successful developers in the industry? *rolls eyes*
A lot of people are waiting for bigger games to come out. I was going to myself, but I had some extra money and RMC and dozens of videos helped convince me to go ahead and get one. Once the bigger games are out, hardware sales will pick up. It always works this way. This is nothing new.
View the full discussion!