The Strategist

Nintendo and Unviversal to Build 'Nintendoland'


05/08/2015 - 15:51



Japanese Nintendo together with Universal has signed an agreement on joint creation of the theme park, which will use the images of the popular video game producer Nintendo. The Company also records a profit for the first time since 2011



The creative teams of both companies work together on the concept of the future park. It is planned that the attractions will draw in the style and concept of Nintendo’s best-known video game franchises, still it is unclear but what exactly. Also there will be presented the most entertaining constructions from Universal.

It should be noted that the future park cannot be fully described as "Nintendoland." Images of the Nintendo universe will be just a part of the park design, thematic area. Location and construction time will be announced in the coming weeks.

Nintendo bears the idea of ​​creating such a park not the first year. First, talk about this started five years ago. Then, in 2010, the CEO Satoru Iwata said that the idea was discussed in the board of directors.

Computer and video games are increasingly becoming the subject of entertainment zones. For example, in the summer of 2012, the Finnish city of Tampere has opened the park Angry Birds Land in honor of the arcade. Later, at the end of last year, St. Petersburg, Russia, got the equivalent.

The first profit since 2011

Recently, it also became known that Nintendo managed to lock in profits for the first time since 2011. The program to reduce costs benefited the Japanese vendor and helped offset the negative impact of slowing revenue growth.

At the end of the fiscal year, closed at the end of March 2015, Nintendo’s net profit was 41.8 billion yen (about $ 350 million) against a net loss of 23.2 billion yen ($ 194.3 million), received a year earlier. The company itself had expected a profit of 30 billion yen ($ 251 million).

Annual operating profit reached 24.8 billion yen (about $ 207 million), whereas in the previous fiscal year, Nintendo has recorded an operating loss of 46.4 billion yen ($ 388.5 million). Revenue fell by 3.8% to 549.8 billion yen ($ 4.6 billion).

In the IV quarter of the fiscal year, Nintendo has gained 108.6 billion yen ($ 909.2 million) against 72.61 billion yen ($ 607.9 million) a year earlier. Analysts predicted revenue at 94.13 billion yen ($ 783.8 million). The company expects a quarterly loss of 19.18 billion yen ($ 159.7 million), but in fact, the net profit got 17.6 billion yen ($ 147.4 million). The period from January to March 2014 was unprofitable (33.42 billion yen, or $ 279.8 million).
 
Over the last three months of last fiscal year, Nintendo has sold only 340 thousand of game consoles Wii U, which is 10% more year on year. The total number of consoles sold reached 9.54 million units. In the last fiscal year, Wii U sales totaled 3.38 million units, while the number of games sold for the console - 24.4 million. Annual sales of handheld 3DS family totaled 8.73 million units.

Who is the newcomer?

Nintendo is developing a new platform that will be different from all existing projects. The company hopes to return to the leaders of the project codenamed NX.

Project details were not disclosed. Perhaps it will be an online service or the Wii U console successor. "As a confirmation of the fact that Nintendo is full of enthusiasm for the independent gaming systems, I confirm that the company is now creating a gaming platform with a fundamentally new concept of the project codenamed NX" - said Mr. Iwata.

NX is going to complement the system of Nintendo. It is also assumed that the Japanese manufacturer will provide compatibility with smartphones, tablets and gaming PCs. The developed products allow to run Nintendo games on all mobile devices and portable consoles.

Nintendo and developer DeNA announced a strategic partnership to create games for the smart devices. Porting games for Nintendo 3DS and Wii U is not planned, but future game content can include characters of famous franchises.

source: forbes.com