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[mechphree]

when other bad controller can sell For 100 , Nintendo can afford to sell more.


I hope they don't do anything with IOS and stick with their own portable.

That'll cost millions and millions in R&D and I don't think Nintendo would be good making a tablet , wouldn't it cannibalize the 3Ds sales?

 

[Cheerilee]

Who the fuck is this guy?

Sylvester Stallone's younger brother, and a musician. He was a running gag on Saturday Night Live for a while.

http://www.youtube.com/watch?v=lV_2ur8MacU

 

[famfrit]

LOL, best gif ever !!!!!!!

 

[titusandronicus]

The .gifs are hilarious, but they aren't anything compared to the posts saying that since the Xbox One and PS4 are so expensive, parents would pick up a Wii U instead. And that the Wii U would outsell the Xbox One because of the bad press.

Wish I had them saved.

 

[Cheerilee]

The .gifs are hilarious, but they aren't anything compared to the posts saying that since the Xbox One and PS4 are so expensive, parents would pick up a Wii U instead. And that the Wii U would outsell the Xbox One because of the bad press.

Wish I had them saved.

I'm pretty sure the PS4/Xbone launches are going to energize Wii U sales. I remember when the N64 launched, people lined up outside the store, but when they found they couldn't get one because of shortages, more people went home with PSX instead. This time it will work in Nintendo's favor instead of against them.

 

[Sneds]

I'm pretty sure the PS4/Xbone launches are going to energize Wii U sales. I remember when the N64 launched, people lined up outside the store, but when they found they couldn't get one because of shortages, more people went home with PSX instead. This time it will work in Nintendo's favor instead of against them.

I think that's really optimistic.

 

[TheBaronOfNA]

I'm pretty sure the PS4/Xbone launches are going to energize Wii U sales. I remember when the N64 launched, people lined up outside the store, but when they found they couldn't get one because of shortages, more people went home with PSX instead. This time it will work in Nintendo's favor instead of against them.

They are buying Xboxs one, dude...

 

[Asd202]

I'm pretty sure the PS4/Xbone launches are going to energize Wii U sales. I remember when the N64 launched, people lined up outside the store, but when they found they couldn't get one because of shortages, more people went home with PSX instead. This time it will work in Nintendo's favor instead of against them.

What? That's not happening dude.

 

[CoffeeJanitor]

I'm pretty sure the PS4/Xbone launches are going to energize Wii U sales. I remember when the N64 launched, people lined up outside the store, but when they found they couldn't get one because of shortages, more people went home with PSX instead. This time it will work in Nintendo's favor instead of against them.

This is a joke off of what Iwata said previously, right?

 

[Captain Tuttle]

I'm pretty sure the PS4/Xbone launches are going to energize Wii U sales. I remember when the N64 launched, people lined up outside the store, but when they found they couldn't get one because of shortages, more people went home with PSX instead. This time it will work in Nintendo's favor instead of against them.

haha, nice!

 

[Chindogg]

I love how no one got Cherilee's joke initially. lol

 

[Sho_Nuff82]

They would be better off making a specific game controller for IOS and android devices. Playing snes games on a touchscreen is a terrible experience. I'd play Mario on my ipad though with a official Nintendo controller.

They would be much better off considering that the target demographic actually prefers having a sleek, touch-only device in their pocket, and probably prefers touch over buttons.

Include bluetooth controller support if you must, but all games need to be designed to play with touch or they won't sell.

 

[Chindogg]

They would be much better off considering that the target demographic actually prefers having a sleek, touch-only device in their pocket, and probably prefers touch over buttons.

Include bluetooth controller support if you must, but all games need to be designed to play with touch or they won't sell.

Welp that kills any type of traditional game. Playing any emulated game with virtual buttons is god fucking awful.

 

[SwiftDeath]

They would be much better off considering that the target demographic actually prefers having a sleek, touch-only device in their pocket, and probably prefers touch over buttons.

Include bluetooth controller support if you must, but all games need to be designed to play with touch or they won't sell.

Yep any publishers (Nintendo, Sony etc.) that focuses on the mobile market are going to ensure that playing their games with touch only works and as such controller support is going to be a secondary priority for sure

 

[cafemomo]

Nintendo has tons of reserves so they are not going down yet, but their business model is...different.

These reserves can't last them forever. People need to stop "muh reserves"

Nintendo needs to change before they eat them all up.

I personally don't think going mobile and third/fourth/whatever party isn't the answer.

But a huge management shakeup and adaptating a new outlook on their home consoles would do them good

 

[udivision]

Welp that kills any type of traditional game. Playing any emulated game with virtual buttons is god fucking awful.

And that's why mobile games aren't a replacement for handheld games, even though handheld games will go the way of the dinosaur.

 

[DiamondDogs]

No, it's not. Here is their cash + short term in jpy:

March 2009: 1,220,148
March 2010: 1,252,321
March 2011: 1,171,076
March 2102:   958,322
March 2013:   903,301

July 2013:    867,130

Not that I doubt your numbers (in fact ... http://markets.ft.com/research/Markets/Tearsheets/Financials?s=7974:TYO&subview=BalanceSheet)

Why does every media report have Nintendo at $14 billion in the bank? Is there something we're missing? Where did it all go?

 

[A_Gorilla]

And that's why mobile games aren't a replacement for handheld games, even though handheld games will go the way of the dinosaur.

They'll evolve into birds?

 

[Danny Dudekisser]

They'll evolve into birds?

The kind that make me angry.

 

[Zizbuka]

$100 WiiU incoming? I'd bite for an awesome deal like that, otherwise I learned my lesson with the Wii. Nice system, but family hasn't touched it in years.

 

[Daingurse]

Do people really buy iPad minis for their kids? That seems crazy to me.

My step dad bought his grandson an Ipad 2-- when that shit was brand new--for a birthday I think. The kid was like 9-10 years old at the time.

 

[Biker19]

There's change coming.

Believe that.

For Nintendo's sake, they need to make changes...& fast. And Iwata...just needs to go. Permanently.

I like Nintendo & their games just as much as I like Sony with Playstation & their games, & I would hate to see one of them crumble.

$100 WiiU incoming? I'd bite for an awesome deal like that.

You want Nintendo to take even more bigger losses than before? That wouldn't be very smart for a company that only focuses on gaming in which they're taking losses already.

 

[numble]

Not that I doubt your numbers (in fact ... http://markets.ft.com/research/Markets/Tearsheets/Financials?s=7974:TYO&subview=BalanceSheet)

Why does every media report have Nintendo at $14 billion in the bank? Is there something we're missing? Where did it all go?

Besides losing money when they lose money, they also have been paying dividends to investors, even when they haven't made any profits. They'll have paid something like $300-$400 million to investors the last 3 years without having turning a profit.

 

[_underfooter]

They would be better off making a specific game controller for IOS and android devices. Playing snes games on a touchscreen is a terrible experience. I'd play Mario on my ipad though with a official Nintendo controller.

I thought about that the other day. What they could really do to utilize mobile and avoid their pour hardware sales/3rd party woes.

I had this idea,

What if Nintendo become a service. Something like Netflix but for Nintendo games, everything cross compatible through the service and hopefully get the service up on PC, Playstations, Xboxs, mobile phones and tablets. They would become fully digital distribution through the process.

They could even still sell their own controllers for different devices, keeping their hand in the device input and control method world (ie; wiimote, CCpro, wiiUpad for PC/consoles). Cross-compatible wherever possible.

They'd lose 3rd-party royalties, but it doesn't look like they're getting too much of that now anyways. They could make up the hardware sales by selling different controllers, and they'd be opening up their software to a lot more people...basically everyone who owns a device of any kind.

 

[Aquamarine]

Besides losing money when they lose money, they also have been paying dividends to investors, even when they haven't made any profits. They'll have paid something like $300-$400 million to investors the last 3 years without having turning a profit.

On the flipside, that's one of the reasons that the Japanese financial institutions don't mind Iwata as much. The solid, reliable dividend payout policy that Iwata sets at the end of each Shareholder's Meeting is key to their support behind him.

Last year, investors received $122.59 million dollars last year, despite the company losing $349.06 million in their core business .

That's significant. Hell, it's the primary reason I keep my Nintendo shares around.

Not that I doubt your numbers (in fact ... http://markets.ft.com/research/Markets/Tearsheets/Financials?s=7974:TYO&subview=BalanceSheet)

Why does every media report have Nintendo at $14 billion in the bank? Is there something we're missing? Where did it all go?

Nintendo has $14 billion in total assets. That doesn't mean all of those assets are represented as cash or cash equivalents.

Property, plant assets, inventories, investments, and other intangible assets (like the value of Nintendo's trademarks) make up a significant amount of Nintendo's assets.

Specifically, they have $11.7 billion in current assets, or assets that Nintendo can expect to convert into cash within a year. Real, immediately-available free cash sitting in bank accounts / deposits right now is only $4.44 billion. Short-term (maturation within three months) investment securities intended to grow the business represent $3.67 billion of Nintendo's assets.

However, you should keep in mind that Nintendo's cash position is cyclical. The holiday season is where Nintendo realizes a significant amount of its profits.

The problems with the company are deep and quite troubling. That aside, a significant amount of money went into R&D for 3DS and Wii U, expanding development staff and brand new buildings...but they're also ramping up marketing and development costs...their margins are shrinking, and they're losing money with the Wii U / they lost money with the 3DS for a while.

 

[Hazelhurst]

This is astoundingly awful. What steps should Nintendo take?

Wii U hardware revision/re-branding. Remove gamepad and drop price to $199. The AAA title onslaught is on the horizon.

They do this and Wii U is saved IMO.

 

[DiamondDogs]

On the flipside, that's one of the reasons that the Japanese financial institutions don't mind Iwata as much. The solid, reliable dividend payout policy that Iwata sets at the end of each Shareholder's Meeting is key to their support behind him.

Last year, investors received $122.59 million dollars last year with a consolidated payout ratio of 180.59% of the company's Operating Income, despite the company losing $349.06 million in their core business .

That's significant. Hell, it's the primary reason I keep my Nintendo shares around.




Nintendo has $14 billion in total assets. That doesn't mean all of those assets are represented as Cash or Cash Equivalents.

Property, plant assets, inventories, investments, and other intangible assets (like the value of Nintendo's trademarks) make up a significant amount of Nintendo's assets.

Specifically, they have $11.7 billion in current assets, or assets that Nintendo can expect to convert into cash within a year. Real, immediately-available free cash sitting in bank accounts / deposits right now is only $4.44 billion. Short-term (maturation within three months) investment securities intended to grow the business represent $3.67 billion of Nintendo's assets.

However, you should keep in mind that Nintendo's cash position is cyclical. The holiday season is where Nintendo realizes a significant amount of its profits.

The problems with the company are deep and quite troubling. That aside, a significant amount of money went into R&D for 3DS and Wii U, expanding development staff and brand new buildings...but they're also ramping up marketing and development costs...their margins are shrinking, and they're losing money with the Wii U / they lost money with the 3DS for a while.

I think I misread Nintendo's cash on hand and saw $800 million, in reality it's 845,477 million yen which roughly translates to $8.105 billion cash on hand.

This goes in line with the $14 billion in bank figure tossed around in the media.

"Buried in reams of financial data is the revelation that Nintendo have 812.8 billion Yen (£6.7/$10.5 billion) in the bank - enough for it to take a 20 billion Yen loss (£163/$257 million) every year until 2052. Then there's almost 469 billion Yen (£3.8/$6.0 billion) held in premises, equipment and investments. When that runs out - we're in the year 2075 by this point - they've got some of the most valuable intellectual property in gaming to sell off before the company goes out of business."

www.gamesradar.com/nintendo-doomed-not-likely-just-take-look-how-much-money-its-got-bank/

 

[Cheerilee]

$100 WiiU incoming? I'd bite for an awesome deal like that.

You want Nintendo to take even more bigger losses than before? That wouldn't be very smart for a company that only focuses on gaming in which they're taking losses already.

There's a chance that they already made 9 million units for this year, and they're sitting on around 6.2 million of them. That's what happened to the GameCube. It apparently set an industry record for unsold units with 4 million, breaking Dreamcast's record of 2 million.

Technically, giving Nintendo $100 for a Wii U might be giving them cash that they really need right now, but through creative accounting they'll only call it a loss once you fork over the cash. If you don't give them any money, they can remain in denial about the money they lost.

 

[Randolph Freelander]

I think I misread Nintendo's cash on hand and saw $800 million, in reality it's 845,477 million yen which roughly translates to $8.105 billion cash on hand.

This goes in line with the $14 billion in bank figure tossed around in the media.

"Buried in reams of financial data is the revelation that Nintendo have 812.8 billion Yen (£6.7/$10.5 billion) in the bank - enough for it to take a 20 billion Yen loss (£163/$257 million) every year until 2052. Then there's almost 469 billion Yen (£3.8/$6.0 billion) held in premises, equipment and investments. When that runs out - we're in the year 2075 by this point - they've got some of the most valuable intellectual property in gaming to sell off before the company goes out of business."

www.gamesradar.com/nintendo-doomed-not-likely-just-take-look-how-much-money-its-got-bank/

Just a note, that paragraph is just beyond stupid, be glad you didn't write it. It's not a realistic portrayal of how fast they would burn through cash, nor is it even in the realm of possibility that investors would allow the company to exist in such a fashion for as long of a period of time. The fact that they've allowed 3 years of losses apparently with no reprisal is already mind boggling.

As Nintendo continues to show losses or even mediocre profit, the company would progressively lose value and eventually be all but worthless. Shareholder wealth would be destroyed, and a suitor would be very likely to swoop in and take over if they saw any value in either Nintendo's core business or IP.

 

[mechphree]

$100 WiiU incoming? I'd bite for an awesome deal like that, otherwise I learned my lesson with the Wii. Nice system, but family hasn't touched it in years.

They'd have to sell the controller separate at that price, and even then I don't think many people will get it,

 

[Aquamarine]

I think I misread Nintendo's cash on hand and saw $800 million, in reality it's 845,477 million yen which roughly translates to $8.105 billion cash on hand.

This goes in line with the $14 billion in bank figure tossed around in the media.

"Buried in reams of financial data is the revelation that Nintendo have 812.8 billion Yen (£6.7/$10.5 billion) in the bank - enough for it to take a 20 billion Yen loss (£163/$257 million) every year until 2052. Then there's almost 469 billion Yen (£3.8/$6.0 billion) held in premises, equipment and investments. When that runs out - we're in the year 2075 by this point - they've got some of the most valuable intellectual property in gaming to sell off before the company goes out of business."

www.gamesradar.com/nintendo-doomed-not-likely-just-take-look-how-much-money-its-got-bank/

As I said, it's really just $4.44 billion in free-floating cash they can immediately access (cash on hand) as well as demand deposits (checkings / savings accounts) from banks. You know..."real cash."

Their second-most liquid assets are usually highly liquid (asset-backed securities, certificates of deposit, money market funds, etc.), but they're convertible to cash within a short period of time.

The next most liquid asset---notes and receivables---are tied up until repayment.

There's a nuanced difference..."cash on hand" is a little different from "marketable securities that are convertible to cash."

 

[numble]

I think I misread Nintendo's cash on hand and saw $800 million, in reality it's 845,477 million yen which roughly translates to $8.105 billion cash on hand.

This goes in line with the $14 billion in bank figure tossed around in the media.

"Buried in reams of financial data is the revelation that Nintendo have 812.8 billion Yen (£6.7/$10.5 billion) in the bank - enough for it to take a 20 billion Yen loss (£163/$257 million) every year until 2052. Then there's almost 469 billion Yen (£3.8/$6.0 billion) held in premises, equipment and investments. When that runs out - we're in the year 2075 by this point - they've got some of the most valuable intellectual property in gaming to sell off before the company goes out of business."

www.gamesradar.com/nintendo-doomed-not-likely-just-take-look-how-much-money-its-got-bank/

Think about that quote from 1.5 years ago (saying that Nintendo has 10.5 billion) and how you can see it is now $8.1 billion. Do you think Gamesradar correctly calculated the rate at which it would burn through the cash? The most easy thing they miss is the $100+ million in dividends they payout each year, for instance.

 

[mechphree]

I thought about that the other day. What they could really do to utilize mobile and avoid their pour hardware sales/3rd party woes.

I had this idea,

What if Nintendo become a service. Something like Netflix but for Nintendo games, everything cross compatible through the service and hopefully get the service up on PC, Playstations, Xboxs, mobile phones and tablets. They would become fully digital distribution through the process.

They could even still sell their own controllers for different devices, keeping their hand in the device input and control method world (ie; wiimote, CCpro, wiiUpad for PC/consoles). Cross-compatible wherever possible.

They'd lose 3rd-party royalties, but it doesn't look like they're getting too much of that now anyways. They could make up the hardware sales by selling different controllers, and they'd be opening up their software to a lot more people...basically everyone who owns a device of any kind.

It would work, I see a lot of Nintendo die hards complaining "but the brand/devalue the games!" But if no one is purchasing them on the WiiU they have to do something. Dropping a new Mario or Zelda won't save the Wii U. I think they should just make a controller that works with iOS/android, force users to have it to play their games and they could make a profit. They need to take a page out of Sonys book. They don't care where you play their games, as long as you play them.

 

[Sandfox]

It would work, I see a lot of Nintendo die hards complaining "but the brand/devalue the games!" But if no one is purchasing them on the WiiU they have to do something. Dropping a new Mario or Zelda won't save the Wii U. I think they should just make a controller that works with iOS/android, force users to have it to play their games and they could make a profit. They need to take a page out of Sonys book. They don't care where you play their games, as long as you play them.

The audience playing games on phones aren't going to buy controllers for them.

 

[Andvary]

Yep, you guessed it: Frank Stallone.

He looks like Pryzbylewski

 

[Zetta]

55 billion yen profit to a 25 billion yen loss in net income.

Holy hell....

 

[_underfooter]

It would work, I see a lot of Nintendo die hards complaining "but the brand/devalue the games!" But if no one is purchasing them on the WiiU they have to do something. Dropping a new Mario or Zelda won't save the Wii U. I think they should just make a controller that works with iOS/android, force users to have it to play their games and they could make a profit. They need to take a page out of Sonys book. They don't care where you play their games, as long as you play them.

I think this would be a great idea. Even if it was just a cheap controller add-on and the ability to play VC games with it.

 

[SporeCrawler]

These reserves can't last them forever. People need to stop "muh reserves"

Nintendo needs to change before they eat them all up.

I personally don't think going mobile and third/fourth/whatever party isn't the answer.

But a huge management shakeup and adaptating a new outlook on their home consoles would do them good

Accoring to nikkei its 15 years or something which means two to three console generations.

http://bizgate.nikkei.co.jp/article/14395816_4.html

 

[mechphree]

The audience playing games on phones aren't going to buy controllers for them.

Well first off, you have no idea "what " exactly the audience really wants. Second Nintendo can tap into a market the other big two aren't currently tapped into. Many kids have iPhones and tablets these days and they would play Mario or something on them if they had the chance. Throw a cheap controller that's under $30 bucks and the parents don't have to do anything else but get the games.

 

[SporeCrawler]

Well first off, you have no idea "what " exactly the audience really wants. Second Nintendo can tap into a market the other big two aren't currently tapped into. Many kids have iPhones and tablets these days and they would play Mario or something on them if they had the chance. Throw a cheap controller that's under $30 bucks and the parents don't have to do anything else but get the games.

Nintendos current model is.

"hey pay for a 3ds and get dedicated games like mario or pokemon"

I think at least for 3ds the model is still working due to the cheap price of the system and the amount of games for the system.

Same cant be said for wiiu at the moment.

I think I misread Nintendo's cash on hand and saw $800 million, in reality it's 845,477 million yen which roughly translates to $8.105 billion cash on hand.

This goes in line with the $14 billion in bank figure tossed around in the media.

"Buried in reams of financial data is the revelation that Nintendo have 812.8 billion Yen (£6.7/$10.5 billion) in the bank - enough for it to take a 20 billion Yen loss (£163/$257 million) every year until 2052. Then there's almost 469 billion Yen (£3.8/$6.0 billion) held in premises, equipment and investments. When that runs out - we're in the year 2075 by this point - they've got some of the most valuable intellectual property in gaming to sell off before the company goes out of business."

www.gamesradar.com/nintendo-doomed-not-likely-just-take-look-how-much-money-its-got-bank/

but who will buy in 2075 when they have only made lossess.

 

[geordiemp]

What if Nintendo become a service. Something like Netflix but for Nintendo games, everything cross compatible through the service and hopefully get the service up on PC, Playstations, Xboxs, mobile phones and tablets. .

Nintendo struggle with standard network never mind streaming tech.

Also streaming is compressed and lags more than a local version. There is no proof that this will be adopted by the masses.....

 

[Dead Man]

I'm pretty sure the PS4/Xbone launches are going to energize Wii U sales. I remember when the N64 launched, people lined up outside the store, but when they found they couldn't get one because of shortages, more people went home with PSX instead. This time it will work in Nintendo's favor instead of against them.

They are going home with Xbones this year...

 

[Sandfox]

Well first off, you have no idea "what " exactly the audience really wants. Second Nintendo can tap into a market the other big two aren't currently tapped into. Many kids have iPhones and tablets these days and they would play Mario or something on them if they had the chance. Throw a cheap controller that's under $30 bucks and the parents don't have to do anything else but get the games.

A majority of the on mobile are the ones who just whip on their phones when they have free time to play cheap if not free games and they aren't going to buy or carry around a controller that costs more than their games to play games on their phone while they are out. Another thing is that kids today are growing up with touch controls so they might not even want a controller.

 

[jcm]

There's a chance that they already made 9 million units for this year, and they're sitting on around 6.2 million of them. That's what happened to the GameCube. It apparently set an industry record for unsold units with 4 million, breaking Dreamcast's record of 2 million.

Technically, giving Nintendo $100 for a Wii U might be giving them cash that they really need right now, but through creative accounting they'll only call it a loss once you fork over the cash. If you don't give them any money, they can remain in denial about the money they lost.

This is a good point. They are currently sitting on a whole lot of inventory. Here is their inventory at the end of September through the years. 2008-2010 is Finished Goods, every other year is Inventory, all in millions JPY:

2007 - 135,485
2008 - 164,971
2009 - 198,568
2010 - 156,714
2011 - 108,642
2012 - 117,176
2013 - 217,778

 

[QaaQer]

This is a good point. They are currently sitting on a whole lot of inventory. Here is their inventory at the end of September through the years. 2008-2010 is Finished Goods, every other year is Inventory, all in millions JPY:

2007 - 135,485
2008 - 164,971
2009 - 198,568
2010 - 156,714
2011 - 108,642
2012 - 117,176
2013 - 217,778

Is it possible to convert that into number of wii Us?

 

[fritolay]

That is a huge difference. I think this will finally push change, hopefully a lot at the top to get the train back on the tracks, because it clearly has run off course.

 

[BrokenEchelon]

What was their fiscal result last year? I'm 99% sure it was a net loss, but of how much? Maybe they'll at least lose less money this year.

 

[baxter2231]

Nintendo has $14 billion in total assets. That doesn't mean all of those assets are represented as cash or cash equivalents.

Property, plant assets, inventories, investments, and other intangible assets (like the value of Nintendo's trademarks) make up a significant amount of Nintendo's assets.

Specifically, they have $11.7 billion in current assets, or assets that Nintendo can expect to convert into cash within a year. Real, immediately-available free cash sitting in bank accounts / deposits right now is only $4.44 billion. Short-term (maturation within three months) investment securities intended to grow the business represent $3.67 billion of Nintendo's assets.

However, you should keep in mind that Nintendo's cash position is cyclical. The holiday season is where Nintendo realizes a significant amount of its profits.

The problems with the company are deep and quite troubling. That aside, a significant amount of money went into R&D for 3DS and Wii U, expanding development staff and brand new buildings...but they're also ramping up marketing and development costs...their margins are shrinking, and they're losing money with the Wii U / they lost money with the 3DS for a while.

Did you do or read a financial analysis of nintendo?

 

[zomgbbqftw]

This is a good point. They are currently sitting on a whole lot of inventory. Here is their inventory at the end of September through the years. 2008-2010 is Finished Goods, every other year is Inventory, all in millions JPY:

2007 - 135,485
2008 - 164,971
2009 - 198,568
2010 - 156,714
2011 - 108,642
2012 - 117,176
2013 - 217,778

A fair chunk of that will be finished 2DS units. Difficult to know how much though.

 

[ASIS]

Did you do or read a financial analysis of nintendo?

She's aquamarine. You can trust her words.