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username
Title: owner of a lonely heart
Joined: Jul 06 2007
Location: phoenix, az usa
Posts: 16136
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Thanks to a combination of factors that don't play into Nintendo's hand, the company behind Mario today projected a net loss of 20 billion yen ($264 million) for the fiscal year ending March 31, 2012.
That's an enormous shift from where that number was originally projected to be; it had been expected to come in at a 20 billion yen profit by the company. Analysts weren't quite as high in their estimates, but they were nonetheless expecting the company to turn a profit. Bloomberg notes how this would be the first time since 1981, when Nintendo started to release consolidated earnings reports, that it suffers a net loss over the course of a full fiscal year.
With roughly 80 percent of the company's business coming from the Americas and Europe, the strength of the yen is hurting Nintendo's bottom line. Also prompting the drop from Nintendo's earlier projections was the unexpected price cut of the 3DS over the summer. (It went from selling at $249.99 to $169.99 in the United States.) Investors were urged at the time to wait until the system could experience its first holiday shopping season before passing judgment on the system's performance.
To date, the 3DS has sold 6.68 million units worldwide, according to the numbers Nintendo shared today. 3.07 million of those came between April 1 and September 30. The company's full-year expectations are for the 3DS to end up selling 16 million units by March 31, the same number we've heard before. It'll have to do that on the back of the holiday shopping season and the system's first big, original releases in Super Mario 3D Land and Mario Kart 7, as well as Monster Hunter 3G in Japan.
The past six months saw 8.13 million software units for 3DS sold, bringing the life-to-date number up to 17.56 million. Nintendo's most recent projection for the full year was for 70 million software units to be sold, an increase from its previously cited 62 million number. It turns out both of those numbers were too high, as it now believes only 50 million will be sold by the end of March 2012.
Wii hardware is still expected to sell 12 million for the full year after selling 3.35 million between April and September. The DS line (DS, DS Lite, DSi, and DSi XL are all included in this figure) did 2.58 million units and is expected to end up at 6 million, down from the previous number of 9 million.
"Sales of Nintendo DS hardware and Nintendo 3DS software were weaker than expected," the company said in a statement. "In addition, yen appreciation was beyond expectation level and the exchange losses totaled 52.4 billion yen ($691.4 million)."
Nintendo admitted the 3DS "has yet to have many hit titles," only highlighting The Legend of Zelda: Ocarina of Time 3D by name as a million-unit seller.
Nintendo's stock price has taken a sizable hit this week. Word emerged earlier this week that Nintendo would report its first half losses as 100 billion yen ($1.32 billion yen), far worse than the 55 billion yen ($725.57 million) expected. Nintendo closed out Monday on the New York Stock Exchange at $19.42; that number current sits at $17.67 and has been steadily dropping all day. In Osaka on Monday, Nintendo was at 11,840 yen ($156) and is now at 11,100 yen ($146).
Changes are on the horizon for 3DS in a number of ways. Nintendo recently outlined a number of changes being brought to the system through a firmware update like the ability to record 3D video. None of those are likely to actually change the system's fortunes, but the release of the aforementioned Monster Hunter 3G will cause a big uptick in sales in Japan. Since its announcement, sales of the system have been up in Nintendo's homeland, and presumably the game's release would only continue that. The same can also be said for Monster Hunter 4, which Nintendo revealed was coming to the 3DS last month.
The 3DS is also getting the slide pad extension or Frankenstick attachment in December to coincide with the release of 3G. Its initial use will be for Monster Hunter, though it will work with other games. Nintendo has yet to announce plans to bring the add-on to North America or Europe, although a trademark filing has indicated its name will be the Circle Pad Pro once the announcement is made. |
http://www.1up.com/news/nintendo-expects-first-annual-loss-thirty-years
its first loss in thirty years? nuts. granted, nintendo wont die because of this, but the fact that it hasnt had a loss in thirty years, just shows how badass nintendo is.
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| Klimbatize wrote: |
| I'll eat a turkey sandwich while blowing my load |
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The Opponent
Title: Forum Battle WINNER
Joined: Feb 24 2010
Location: The Danger Zone
Posts: 3495
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Let's see how long that buffer they built with years of Wii and DS sales will last.
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 I'm not a bad enough dude, but I am an edgy little shit. I'll do what I can. |
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username
Title: owner of a lonely heart
Joined: Jul 06 2007
Location: phoenix, az usa
Posts: 16136
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im sure they'll turn a profit after zelda gets released... as well as mario 3d & mario kart 7
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| Klimbatize wrote: |
| I'll eat a turkey sandwich while blowing my load |
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Beach Bum
Joined: Dec 08 2010
Location: At the pants party.
Posts: 1777
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Yeah as soon as they stop releasing primarily remakes and start pushing original games sales will pick up. I'd imagine the price plus the lack of new, original titles was a big factor in the sales being kind of lackluster at launch. The price drop helped though, because it was a little too expensive for a handheld in my opinion.
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Lady_Satine
Title: Head of Lexian R&D
Joined: Oct 15 2005
Location: Metro area, Georgia
Posts: 7287
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| The-Excel wrote: |
| Let's see how long that buffer they built with years of Wii and DS sales will last. |
It almost sounds like you want them to crash and burn.
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 "Life is a waste of time. Time is a waste of life. Get wasted all the time, and you'll have the time of your life!" |
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JoshWoodzy
Joined: May 22 2008
Location: Goshen, VA
Posts: 6544
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| lordsathien wrote: |
| The-Excel wrote: |
| Let's see how long that buffer they built with years of Wii and DS sales will last. |
It almost sounds like you want them to crash and burn. |
No shit. Did Nintendo rape your dog, Excel?
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Syd Lexia
Site Admin
Title: Pop Culture Junkie
Joined: Jul 30 2005
Location: Wakefield, MA
Posts: 24887
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Yeah, the 3DS has had weak titles. Zelda 3D was great, but a remake. Devil
Survivor is on the DS. Street Fighter IV is on everything. Everything else released has been meh. The DS has gotten more games since March than the 3DS.
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username
Title: owner of a lonely heart
Joined: Jul 06 2007
Location: phoenix, az usa
Posts: 16136
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| joshwoodzy wrote: |
| lordsathien wrote: |
| The-Excel wrote: |
| Let's see how long that buffer they built with years of Wii and DS sales will last. |
It almost sounds like you want them to crash and burn. |
No shit. Did Nintendo rape your dog, Excel? |
they raped mine... but i forgave them. my dog was leading them on
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| Klimbatize wrote: |
| I'll eat a turkey sandwich while blowing my load |
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Tomdincan
Title: Test Icicle
Joined: Oct 02 2010
Location: Temple Shalina
Posts: 450
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Nintendo's prospects still seem solid in the long term. Several of my company's mutual funds hold 8 or 9 figure stakes in Nintendo (millions of shares in some cases), and there's tons of research that goes in to that.
EDIT: Additionally, Nintendo lost 52.4 Billion Yen in foreign exchange transactions because they keep a lot of their holdings in other currencies, and the Yen has been a beast lately. It's at a post WWII high against the dollar.
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 I'm not a psychopath. I'm a high-functioning sociopath. |
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Douche McCallister
Moderator
Title: DOO-SHAY
Joined: Jan 26 2007
Location: Private Areas
Posts: 5672
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The Wii has died down, the games produced are all poop. It was bound to happen, add in all the R&D they've been putting into the WiiU, and it makes sense. Releasing the DS lite, DSi and the 3DS all in rapid succession probably hasn't helped matters. This next system could make or break them.
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HardcoreGamer4Ever
Title: I Am The God Of Awesome
Joined: Jun 28 2010
Location: Your Mom's Vagina!
Posts: 1298
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| username wrote: |
| joshwoodzy wrote: |
| lordsathien wrote: |
| The-Excel wrote: |
| Let's see how long that buffer they built with years of Wii and DS sales will last. |
It almost sounds like you want them to crash and burn. |
No shit. Did Nintendo rape your dog, Excel? |
they raped mine... but i forgave them. my dog was leading them on |
I also raped your dog. I'm sorry.
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https://badassgorilla.blogspot.com/
Yo yo yo, check out my new(ish) site!
RIP Happy Katana (2010-2020) |
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taterfyrings
Joined: Sep 25 2009
Location: Bergen, Norway
Posts: 395
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Too much doom and gloom here, as Tomdincan quite correctly states, most of these looses are because of the terrible exchange rates, and are not even realized looses before Nintendo eventually decides to convert their euros and dollars into yen, which probably won't happen before the exchange rates have improved somewhat, making the actual losses for Nintendo smaller than what it appears here.
However, there is no doubt that Nintendo fucked up with the 3DS, but the device is doing fine now, and have actually outsold the original DS in its first few months on shelves, which is quite impressive considering the DS ended up the best selling game-device of all time.
So I would say there is no way their next console is going to "make or break" Nintendo. They will do fine even if they only achieve gamecube-level or weaker sales. I would be more worried about Sony, they have lost more money in this generation alone, than they have earned during their successful PS1 and PS2-years. However, I guess the Playstation is to important for them as a potential media centre to really care about those looses. Guess all three will be sailing along then.
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Ice2SeeYou
Title: Sexual Tyrannosaurus
Joined: Sep 28 2008
Location: South of Heaven
Posts: 1761
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I kind of wish Nintendo would release a "normal" console. If they had an offering that could play all the same multiplatform games as Microsoft and Sony, I'd go with Nintendo simply due to their quality control being light years better than the others.
As it is, Nintendo is chugging along with their "different" ideology. That's great for some people, but for me personally, they haven't appealed to me since the SNES (N64 was cool, but I already had a PS1 at the time).
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 Sydlexia.com - Where miserable bastards meet to call each other retards. |
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Thunderhorse
Title: This is DELICIOUS!
Joined: Dec 29 2009
Location: Colorado Springs, CO
Posts: 1923
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| Syd Lexia wrote: |
Yeah, the 3DS has had weak titles. Zelda 3D was great, but a remake. Devil
Survivor is on the DS. Street Fighter IV is on everything. Everything else released has been meh. The DS has gotten more games since March than the 3DS. |
Every 3DS game I own is either a port or a remake.
Zelda OoT 3D is a remake of OoT
Samurai Warriors Chronicles is a port of Samurai Warriors 3
Super Street Fighter IV 3DS is a port of SSFIV
Devil Survivor is a port of the original DS game
Resident Evil Mercenaries 3D is pretty much in RE5 with just a few new characters and stages
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This Is Tuna With Bacon |
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taterfyrings
Joined: Sep 25 2009
Location: Bergen, Norway
Posts: 395
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I am really happy that Nintendo does try to offer something different with their consoles, would be a terribly boring industry without them. Also, do we really need three consoles that are doing exactly the same thing? Must be better if they can specialize in different things, no?
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Ice2SeeYou
Title: Sexual Tyrannosaurus
Joined: Sep 28 2008
Location: South of Heaven
Posts: 1761
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| taterfyrings wrote: |
| I am really happy that Nintendo does try to offer something different with their consoles, would be a terribly boring industry without them. Also, do we really need three consoles that are doing exactly the same thing? Must be better if they can specialize in different things, no? |
I guess it depends if you like what Nintendo has been offering. Like I said above, nothing Nintendo has done in a while has appealed to me.
And while I agree that having 3 consoles doing the same thing might be redundant, I think if Nintendo really threw their weight into it they could out-do the others. As I mentioned, I'd love to have a Nintendo product sitting under my TV that could do all the things the others can do, and probably better and with less reliability issues.
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 Sydlexia.com - Where miserable bastards meet to call each other retards. |
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Syd Lexia
Site Admin
Title: Pop Culture Junkie
Joined: Jul 30 2005
Location: Wakefield, MA
Posts: 24887
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I think Nintendo needs to expand their business model. There's nothing wrong with their A-list titles, and about half of their lower tier stuff is fine. The problem is that they're not diverse enough. I'm not saying they should make FPS games, but they should introduce more T-rated titles into their repetoire and publish M-rated as well. If Europe and North America are their biggest markets, how come they only get a fraction of the titles Japan does? That's not good business.
As for the 3DS, I was reading last night that the 3DS has actually outpaced the DS on sales, when comparing the first six months that each system was first available.
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The Opponent
Title: Forum Battle WINNER
Joined: Feb 24 2010
Location: The Danger Zone
Posts: 3495
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| lordsathien wrote: |
| The-Excel wrote: |
| Let's see how long that buffer they built with years of Wii and DS sales will last. |
It almost sounds like you want them to crash and burn. |
I assure you I meant no such thing. I'm curious as to how long they think they can last, because no one seems to think they will at the moment.
| Syd Lexia wrote: |
| I think Nintendo needs to expand their business model. There's nothing wrong with their A-list titles, and about half of their lower tier stuff is fine. The problem is that they're not diverse enough. I'm not saying they should make FPS games, but they should introduce more T-rated titles into their repetoire and publish M-rated as well. If Europe and North America are their biggest markets, how come they only get a fraction of the titles Japan does? That's not good business. |
I've said it before: If Nintendo wants to truly show their commitment to these markets, they need to dedicate at least a year to publish only non-E-rated games, preferably not with their major brands. If they release only a couple, even if it's those three RPGs a few thousand people want, it will only be seen as an aberration in the long term. They can do without publishing a Mario/Zelda/Kirby/Metroid/etc. title for one year. People will complain at first, but for all of those people who moan that Nintendo only ever does sequels and remakes, they'll hopefully appreciate it in the long run. If they really want to recapture the hardcores, including developers targeted to them, they need to abandon everyone else, even if only for a year. It's going to make the complaints from the mainstream media that Nintendo is no longer family friendly increase at least three-fold, but they're good at weathering criticism so I'm not worried about that. From all the properly-worded complaints from the so-called die-hard Nintendo fans and ex-fans I've been reading, apparently they're the only ones whose money actually matters. If they really want Nintendo to take their money, I say they go down to their offices in Redmond and shove it down their throats because the way Nintendo is structured now, they aren't getting it any other way.
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 I'm not a bad enough dude, but I am an edgy little shit. I'll do what I can. |
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ChaoticIgnorance
Joined: Apr 17 2011
Location: US
Posts: 58
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I still feel like every argument people throw out there at Nintendo is an argument that should be thrown at the other companies as well, yet never is. First of all Nintendo did have a system that was exactly like the others; it was called the Gamecube. While it didn't have all the games that the PS2 and Xbox had, it was on par with the Xbox and better than the PS2 with just as big of a varied library.
Secondly, why does Nintendo /need/ to make T and M rated games? I mean sure they're missing out on a big market by not creating them, but Sony and Microsoft don't make nearly as many E rated games (pre-Kinect I suppose), yet they do fine and nobody complains. It reminds me of the times when people complain that Nintendo is failing because they refuse to make new IPs, when clearly they have more than both Microsoft and Sony combined. It's an argument that people like to throw out there when they should be directing the hate at 3rd parties who refuse to make games for Nintendo systems. With both the Wii and the 3DS, 3rd parties have been hesitant with making games because either they don't sell well, or the install base isn't there. Well they don't sell well because the companies don't put enough effort into making unique stuff. And the install base isn't there because you aren't /making the games/. You've got to start from nothing to get to something.
Not to mention, I'm not sure if this is fact and I have no evidence, but isn't this a 'loss' for Nintendo only because the Wii and DS were so big? They haven't had anything nearly as big in the last 30 years, so of course it's going to look like they're taking a hit with the system that is released just after the Wii/DS. If anything that shows how freakin giganticly amazing they were last generation. It's not a loss, they just didn't make as much money this quarter.
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Syd Lexia
Site Admin
Title: Pop Culture Junkie
Joined: Jul 30 2005
Location: Wakefield, MA
Posts: 24887
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Yeah, I find it hard to believe Nintendo took an actual "loss" unless they mass produced the 3DS and are selling it at a huge loss. Which is doubtful. This loss seems to be more based on stocks and currency values than anything else.
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Greg the White
Joined: Apr 09 2008
Location: Pennsylvania
Posts: 3112
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| ChaoticIgnorance wrote: |
| While it didn't have all the games that the PS2 and Xbox had, it was on par with the Xbox and better than the PS2 with just as big of a varied library. |
It had more games than the Xbox, but the Xbox also lost money for Microsoft.
| Quote: |
| Secondly, why does Nintendo /need/ to make T and M rated games? I mean sure they're missing out on a big market by not creating them, but Sony and Microsoft don't make nearly as many E rated games (pre-Kinect I suppose), yet they do fine and nobody complains. |
Think back to when you were really young. if your parents gave you the opportunity to get Mortal Kombat (maybe GTA3 for our younger members), would you say "No, I want that game intended more for my age group." I bet I'd hear more small children on Call of Duty online than Smash Bros. E ratings theoretically leave it open to all ages, but as a kid, you would rather get what you couldn't have. Forbidden fruits is Marketing 101 with kids, which is why you'll see teenagers on commercials selling toys to little kids. They'll buy what the older generation would think is cool.
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| It reminds me of the times when people complain that Nintendo is failing because they refuse to make new IPs, when clearly they have more than both Microsoft and Sony combined. |
Because MS has one (which is still riding high off of fanboyism and online gaming, despite being bland and unfun) and Sony has some, but has the same problems that Nintendo does, and they will rehash the crap out of some of them. To be fair, Nintendo does tend to at least mix it up once in a while (Wind Waker, Metroid Prime, Paper Mario...), but when those prove successful, they'll just start milking again. Think about it: We didn't get a real Mario platformer for years after Super Mario World, then Mario 64 came out and blew everyone's mind. If you oversaturate an IP (or in Sonic's extreme case, oversaturate it with shitty games), you run the risk of losing customers with fatigue of same-old same-old, as we saw with Guitar Hero (predicting Call of Duty to follow) and EA's old corporate structure. Nintendo doesn't need new IP's, they just need to learn how to market and sell their current ones in a more beneficial way.
| Quote: |
| It's an argument that people like to throw out there when they should be directing the hate at 3rd parties who refuse to make games for Nintendo systems. With both the Wii and the 3DS, 3rd parties have been hesitant with making games because either they don't sell well, or the install base isn't there. Well they don't sell well because the companies don't put enough effort into making unique stuff. |
Unique doesn't always sell, which is a damned shame. And really, they both have very large libraries, but the problem was that the Wii was really just treated like a fad by smaller developers who wanted to but in and charged $60 for cheap games that would have flopped on XBLA. On the other hand, the DS has a great library full of all types of games, with great new ones coming out regularly, with a lot of third party support. I don't see the DS being the problem in all of this. It sold, and as I understand, continues to sell very well, and I see people of all ages playing one everywhere I go. One thing I have to wonder about is the trade-in or re-sale estimates on Wiis. You'd see casual, previously non-gamers buying them in droves upon release, leading to its massive sales, but how many of them actually kept up with it and kept buying games? The DS doesn't really have that problem I guess, because people use it to keep themselves busy while traveling and such. In that case, buying a new game is like buying a new book, or new song for your MP3 player. It's a smart, profitable business model.
| Quote: |
| Not to mention, I'm not sure if this is fact and I have no evidence, but isn't this a 'loss' for Nintendo only because the Wii and DS were so big? They haven't had anything nearly as big in the last 30 years, so of course it's going to look like they're taking a hit with the system that is released just after the Wii/DS. If anything that shows how freakin giganticly amazing they were last generation. It's not a loss, they just didn't make as much money this quarter. |
I see rage coming on at my previous comments. This is the problem with fanboyism, whether it's business or even something like politics. Nintendo has a money problem. Now whether or not it has to do with its hardware, software, or its demographics' woes during the downturn in the world markets is beyond me, but saying they've done everything "giganticly amazing," is just incorrect. They are having problems.
The best thing you could do as a customer or company is to encourage different avenues, or be open yourself. I went through a period about a year after I got my 360 where the games were getting horribly bland and samey. I wasn't buying anything, and almost considered selling it. Perhaps Microsoft saw that they weren't doing as well as they could, so they revamped Xbox Live, attracting great games to the Arcade, and tiny little popcorn (read: borderline plagiarism) games to the indie section. I especially like the Games on Demand section, which appeals to the impulse buyer in me. They typically release only mid-to-high quality games, something Nintendo can do to show off the best of the Wii's library. Older casual gamers and very young players have probably never played a Zelda or Mario game, and they should be introduced to them, but as older gamers we're in our own mindset of Nintendo's classic IP's being part of an everyday constant in the industry. People should be introduced these great games, new or old, but most of them don't really look into gaming news or history. It's just not going to happen if they're buried in Gamestop's bargain bin underneath Super Carnival Shooter 6 or something, if it could be worked into the online component.
Please don't take this as me dumping on you in particular. I saw your post was filled with a lot of points that I've seen and would like to respond to, so it seemed like a good place to start a friendly debate over it.
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 So here's to you Mrs. Robinson. People love you more- oh, nevermind. |
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Syd Lexia
Site Admin
Title: Pop Culture Junkie
Joined: Jul 30 2005
Location: Wakefield, MA
Posts: 24887
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A big problem is that Nintendo doesn't really advertise. How many commercials did you see for Gears of War 3? How many have you seen for Skyward Sword?
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Beach Bum
Joined: Dec 08 2010
Location: At the pants party.
Posts: 1777
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I actually saw a 3DS commercial last night and was amazed that I saw one. I can honestly say I don't think I've seen a Nintendo commercial in over a year or so.
Personally I'd love to see them get some more diversity in their game lineup. I've owned a Wii since about a year after it launched and it pretty much just sits unused all the time because the games I want to play are never on the system. The first party games are usually fun, but I've only played a couple third party titles that I enjoyed on it. I actually ended up taking it to my Mom's house and leaving it there because she plays it more than I do, so at least I don't feel like it was a total waste of money.
The DS actually got a lot of third party support and it seems to have done really well, so hopefully they can get some going for the 3DS too.
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username
Title: owner of a lonely heart
Joined: Jul 06 2007
Location: phoenix, az usa
Posts: 16136
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| Syd Lexia wrote: |
| A big problem is that Nintendo doesn't really advertise. How many commercials did you see for Gears of War 3? How many have you seen for Skyward Sword? |
they dont really need to. if youre a nintendo fan, and a zelda fan, then you know when the next zelda will be released. they probably will have a small marketing campaign for it, but nothing the size of gears of war. they should advertise that golden wiimote preorder bonus though. that would make sense.
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| Klimbatize wrote: |
| I'll eat a turkey sandwich while blowing my load |
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Vert1
Joined: Aug 28 2011
Posts: 537
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Eh. There isn't any real conflict going on with Nintendo vs Nintendo doom-sayers today. Any attempt to rekindle the "teh doomed" flames is futile. This is a non-event. There is no real exciting fervor to defend Nintendo; they are not the underdog.
Nintendo does not need to advertise as they have defeated their number 1 hurdle which was perception. All Nintendo has to do is keep up this new image.
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