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May 7
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Seriously Hoenn

Journal Entry: Wed May 7, 2014, 9:10 AM

This is my FULL TIME JOB, and I depend on your support and generosity to make ends meet! I don't believe in subscriptions, paywalls, or premium content. Those suck. Everyone should be able to enjoy my work if they want, and support me on their own terms if they'd like to! All of my work is free, and I live off of prints, merch, and PAY-WHAT-YOU-WANT content, available at my website below!

Pay-What-You-Want's like a donation, but you also get cool art,
sketches, wallpapers, and other stuff! Which is better than a donation!





I usually keep my non-art stuff to my personal blog... but I really love Nintendo's franchises, so here:

Seriously tho. Nintendo planned for 9 million Wii Us. They adjusted that to just 2.8 million in January. They didn’t even make that by the end of the fiscal year. And console projections for this year are down 60%, what with Sony and Microsoft putting Nintendo in the corner. These are NINTENDO’S predictions. They are PREDICTING Smash and Hoenn won’t help.

3DS sales were down by over 5 Million. Even with Pokemon. It’s bad man.Diehards have gotten into this habit of responding with the fact that Nintendo’s sitting on a few billion in reserves, but that’s normal for any large company, and is in no real way a factor or measure of your success. Cash reserves are a VERY BAD THING unless you’re turning a PROFIT. Business doesn’t work on cash reserves. Money saved is money not invested.  Money lost in investments is money poorly invested. And compared to Sony, Microsoft, and Nintendo’s REAL competition, Apple and Samsung, they have useless cash reserves, zero investments, and zero clout. It’s your stock value and ability to please your stockholders that ultimately determine your success. If you can’t prove your stock worth, and can’t prove your FUTURE’S WORTH, it’s a no go. Companies have folded with more. They do every day. A three year loss of $1,180,000,000 is rreeaallyy bad. Especially bad for a GAMES only company. They’re got nothing else to go on or shift focus to. 

Nintendo, historically, uses a very positive and upbeat business image. That’s really why fans don’t seem concerned. It’s a good strategy. The fans get funny videos and executives and their Hoenn remake! But it’s a a plan that only masks the problem, and only to a small amount of people. Fans are great, but Nintendo dumped a huge portion of their cusp-of-adulthood fans with the original Wii. Fans that could still be loyal, but are busy on COD and Battlefield now. And fans spend the same as an average parent buying for the kid or themselves. The parents and kids continue to choose iPhones and PS4s over NIntendo’s offerings. With understandable reason. Go big for your living room. Go multi with your handheld. It’s proven what people want. And there’s literally nothing that can be done about it. Nintendo lacks the experience, resources, and staff to push the company into other fields. And it’s way too late for that anyway. Decades too late. Nintendo themselves are projecting a minimal $390 million profit this year. THIS YEAR. WITH TWO SMASH GAMES (one that will cannibalize the other) AND HOENN. I’m NOT saying Nintendo is “going out of a business,” a vague term that can mean whatever good or bad thing you want it to. I’m just saying that factual and proven BAD TIMES ARE HERE.

Personally, I’m wondering just how far it has to go before Nintendo goes mobile 3rd party. Even with the 3DS outperforming the Wii U, handhelds will get axed before their consoles. I’m excited for Hoenn. And 3DS Smash. But I think it’s important NOT to fall into Nintendo’s over-exuberant front. I think everyone needs to be realistic about the situation and what needs to be done to turn a profit in a company that doesn’t have the time to branch out, and has completely lost support from the all important general audience. DLC POKEMON AND SMASH CHARACTERS. MAKE THE FANS WORK FOR YOU.



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:iconsoulsiiver:
SoulSiIver Featured By Owner May 8, 2014
they will probably do the same as X and Y...
a simple story, nothing to do after ...

sometimes i dont get nintendo :/ 
Reply
:iconleviadragon99:
leviadragon99 Featured By Owner May 7, 2014
Yeah... it's a bad spot for Nintendo, I don't know how they're going to get through this, but I hope they do, they're a remnant from an earlier time, when things were not necessarily better... but where developers and publishers didn't do the kind of bullshit that's so common in the games industry today.

Granted, looking at Nintendo's own business history, they did some strongarm tactics of their own when they were back in a position of power, but I'd still rather have them than a bunch of EA-clones running the show.
Reply
:iconpainfulelegy:
PainfulElegy Featured By Owner May 7, 2014  Hobbyist Traditional Artist
I should also note that the statements you're making now are the same ones people have been making about nintendo since the 80s.
Reply
:iconslugbox:
Slugbox Featured By Owner May 7, 2014
Nintendo didn't become a publicly world traded company until 1996...
Reply
:iconpainfulelegy:
PainfulElegy Featured By Owner May 7, 2014  Hobbyist Traditional Artist
Yes, but they have been going to trade shows since before that. There were people who were saying the NES would fail back when atari consoles were still big. Every time nintendo does something, gimmicks get tossed around as a term for long term failure.

They're running into issues recently, but it's not as bad as doomsaying implies.
Reply
:iconjekl-is-hyding:
JeKL-Is-Hyding Featured By Owner May 8, 2014
I'm going to have to agree with this--but with Slug, too. Slug, you're reasoning is rock solid--you're probably one of the smarter people I've heard talk about Nintendo's current position. Honestly, I agree with you 100%: people are too focused on one game being "Nintendo's Savior" or some crap like that, like how Kill la Kill and Space Dandy were supposed to "save anime" or whatever.

But, let's be real for a moment: Nintendo has always been "in the red". The NES? Released during a time where people thought console games were dead-and-buried. The SNES? Released when Sega had its ultra-hip Sega Genesis, and the attention of an "older" crowd. The N64? Dependent on cartridges when most everyone else had switched to CDs. The Game Boy? The weakest handheld console, compared to the Atari Lynx and the Game Gear. Gamecube? No online. Wii? Barely stronger than the Gamecube.

Again, I can't argue against your solid business reasoning--in fact, I agree. But, I still have a hard time thinking that Nintendo's situation is just *that* bad, when people have been arguing that its end is nigh since the Reagan administration and this is it, we really mean it this time!

Or maybe I'm just talking out of by butt because I never studied business, I dunno.
Reply
:iconpainfulelegy:
PainfulElegy Featured By Owner May 8, 2014  Hobbyist Traditional Artist
The main issue I have is that everyone pushes the concept that nintendo needs to be doing what the other companies are doing to stay in the market, when in the long term, doing that is going to be an issue. Theres this big push that the tablet will kill gaming, but it's nowhere close to what people suggest, as it's going to take a long time for it to catch up. Computer/4k gaming on the other hand is already caught up, and all it needs to do is push down its price tag a bit to be more open to console gamers.

This is the main reason why I think anyone who says nintendo needs to stop with the 'gimmicks' and just build a stronger console is missing the point. By building that 'stronger console', nintendo is getting those cross platforms, but is also competing directly against other people who have these same games, and something like the PC would blow that out of the water. By using 'gimmicks', nintendo locks a niche for themselves that no other system can replicate, meaning that more of their games can stay exclusive experiences.

And truth be told, if these consoles really were just gimmicks, then they wouldn't have pushed their consoles as well as they did as time passed. It's also ironic because people talk about wanting innovation in gaming, but when something radically different pops up, it's just a gimmick and completely disregarded as unecessary.


That said, the video game industry is in a kind of bubble, and it's going to kill a lot of mid sized companies who spend far too much compared to their value, and is probably going to open up a lot more space for indie companies to fill into those holes and become the new premeire 3rd party.
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:iconnefepants:
Nefepants Featured By Owner May 8, 2014  Hobbyist Digital Artist
:iconclapplz:
Reply
:iconlovelesskia:
LovelessKia Featured By Owner May 7, 2014
I'm still gonna buy nintendo shit as long as it exists because whateverrrrrrrrrrrrrrrr
tbh I like my wiiu
Reply
:iconpainfulelegy:
PainfulElegy Featured By Owner May 7, 2014  Hobbyist Traditional Artist
Nintendo will never go mobile third party. Mobile third party is actually one of the WORST plans due to the voliatile nature of Mobile. Zynga was king, and then they died to King. And all of this is ignoring that what makes mobile game companies successful is their monetization systems.

There was a recent investor's meeting wherein someone was vying for the same thing and shot down HARD. If nintendo was to cease production of consoles, it's definitely not going to be for mobile games. The closest thing to that currently is the plan to use mobile devices to market their console games.

Further, the sales on the 3DS aren't as bad, and the problem with the Wii U is their marketing; not the quality of the device. The way they marketed the Wii U makes it appear as if it was just an upgrade to the Wii. What they need is some rebranding to do this, and those liquid cash reserves are going to help them keep stable while they correct for error. Investing every penny you have is not as great of an idea as it sounds when you're relying on very major things to maintain cash flow, because if there is a failure in that, it messes with all the other plans that you have to cut from to recoup.

Also, Sony and MS have been looking at similar losses on their consoles, and their actual games divisions are much smaller than nintendo itself. Nintendo is the big fish in the gaming market, as the only companies producing games that are bigger than them are deriving a lot of their income from other products.

You're also incorrect about 'moving into other fields', as that's precisely what nintendo has been doing for over a century now. There is a reason why they still have a high security rating in the japanese stock market, even with declining values in their stocks.


Basically, the mobile market definitely isn't going to subsume nintendo. If anything would, it's going to be lack of investor confidence or them staunchly refusing to fix problems (which isn't going to happen since that's exactly what they'd said they would be doing in the next year with new campaigns and the like).
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