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Sales-Age: NTDOY Q4 earnings report

Xisiqomelir

Member
Cheesemeister said:
DS hardware at 64.79 million worldwide LTD (compare with GBA at 80.72 million)
20.18 million in North/South America
21.66 million in Japan
22.94 million elsewhere

Wii hardware at 20.13 million worldwide LTD (compare with NGC at 21.72 million)
8.85 million in North/South America
4.99 million in Japan
6.30 million elsewhere

i.oi pwnt
 
Cheesemeister said:
I'm shocked that NTDOY has dropped a dollar today so far. WTF?

The world's economy is in the shitter. Most stocks will be dropping regardless of how well their companies actually do.

See - Apple.
 

Haunted

Member
Cheesemeister said:
I'm shocked that NTDOY has dropped a dollar today so far. WTF?
What Stump and Pure said, + markets were already expecting a strong earnings report from Nintendo - lots of Nintendo's recent success is already accounted for in the current share prices.
 
Ah, what a time to be a fanboy. I'm really sorry to the Brian Intehars (sic) out there that are afraid of the Wii's success. As long as Ninty are around making some brand of game, I'll be happy. That they make so much money doing it is just plain awesome. It's good to see "Nintendo players" flying off the shelves. Doesn't make playing Halo 3 on a nice widescreen HDTV any less sweet.

I hope that they use this money though, to consolidate their base with more hardcore offerings. It really can't hurt.
 

Jokeropia

Member
Amazing numbers. I hope we get a "supplementary information to earnings release" containing worldwide software numbers for the top selling games as well.
 
Cheesemeister said:
I'm shocked that NTDOY has dropped a dollar today so far. WTF?
Same here. I was hoping it was going pop back into the 70s so I'd have a nice place to unload it.

As for the thought that there earnings were already accounted for, I don't buy that completely. I expected their earnings to go up, but not like they have. It's amazing.
 

Neo C.

Member
KevinCow said:
I wonder what Nintendo will use that money for. Better advertising? More games?
(Even) better advertising, more researches (software and hardware), not necessarily more games, but more polished games.

If I were Iwata: build up departements in China, India, and Brazil. Of course the big challenge is the piracy in these countries, but at least Nintendo can make some healthy win with the hardware. Nintendo already made a departement in South Korea and is having success with the DS.
 

argon

Member
Cheesemeister said:
I'm shocked that NTDOY has dropped a dollar today so far. WTF?

Don't stress, it's a great buying opportunity. The price is around where it was when they released earnings last July, and now we have 95% earnings growth and a dividend increase.

The only question mark over this stock is how the strengthening yen will affect international earnings. I don't think it will be a big deal, but that's what's depressing the share price at the moment.
 

iifu

Neo Member
Pureauthor said:
The world's economy is in the shitter. Most stocks will be dropping regardless of how well their companies actually do.

See - Apple.
Also, NTDOY is an ADR. The Japanese market has not yet had a chance to react to earnings.
 

gkryhewy

Member
bmf said:
Woot. Stock price is rallying. Up 1.05 since I last posted.

edit:

up another 55 cents.

Japan has not had a chance yet to react to the earnings (unless someone is aware of after hours nikkei info?), so these intraday fluctuations are irrelevant (unless they reflect sentiment that will be shared in Japan).
 

Minsc

Gold Member
Cheesemeister said:
I'm shocked that NTDOY has dropped a dollar today so far. WTF?

People are unconvinced Wii Fit will be launched in the US/Europe this year perhaps? That alone should be enough to bump the stock up a bit higher.

I think investors just want Nintendo to start announcing more products, at least some more colors would help. We've seen what the Wii and DS can do, now it's time to move forward! Start hyping things again Nintendo, investors aren't satisfied with 1.8M / month.

New features, new colors, new products, new games, and more production. Let's go! That wheel can turn faster yet!
 

liuelson

Member
Stop It said:
Anyway, going by those figures, Ninty made 2.43 BILLION DOLLARS of profit in 9 months?

I remember reading somewhere that Nintendo had relatively few employees, and the revenue / profit per employee was astronomical.

Ahh: Wired blog from May 2007 referring to an article in Fortune.

$2.43 billion over 3400 employees is about $700k per employee? I wonder if they have profit-sharing...
 
C4Lukins said:
The market is about growth not just big numbers. This was a fantastic year for them in both regards, but even if they maintain this sort of dominance, as far as investors are concerned they need to grow even larger for it to be a company to keep their eye on. It is not negative spin, they are just talking about their potential for further growth in the future.

Screw the investors. That's the problem with so many large companies: they're not happy turning a profit every year, even a very large profit. They feel that they must grow, or they're failing. Making $3 billion in profit two years running is considered bad. Making $3 billion one year and $2.9 billion the next is considered "losing money".

The concept of invested shares was not meant to be a buying and selling game. It was meant to work like this: you buy some shares, and you get back profit on each share you have. If the company profits, you profit.

But of course, it turned out you can make more money by buying low and selling high.

Still, that wasn't a problem, either. The problem is that companies are more concerned about their share price than their profitability--because their own executives and shareholders demand it, since they also want the faster cash for their own shares.

It creates all sorts of problems, including hugely overvalued shares based on potential earnings (which can lead to problems like the market is experiencing now).

On the real world side, outside of financial silliness, it can make for a very poor work environment. I work for a company that's been purchased several times over the last 6 years, and most of those buyouts come with mass firings and increased workloads for the remaining employees. Every year, we're expected to have significantly higher sales despite the fact that our customer base has a fairly steady cap--the number of hotel rooms we have in our casinos. Costs are expected to fall every year, so when an employee leaves, they're often not replaced. All this for the stock price. The company makes an extremely high profit every year, but not necessarily more than the prior one. It's not sustainable.

A few years ago, I worked for another casino. It was bought out and I lost my job, with no regard for how well I'd done--it was simple math. I saw the e-mail to my boss (who was fired after he'd fired the rest of us) detailing how much money he needed to cut in salaries.

I didn't hold a grudge, and in fact took another job a few months later, with the company who bought us out. But it is frustrating.
 

JavyOO7

Member
Britprog said:
So from Oct to Dec 07 Wii sold:

Japan 1.32 Million
America 3.39 Million
ROTW 2.26 Million

Wii's weakest region is Japan :lol

That's a bit worrying I believe. The Wii was selling great for a while during most of the first half of 2007 and then seemed to slow down quite a bit in the 2nd half until November came and went. I guess I'm just blinded by DS numbers and thinking the Wii should do that as well.
 

MisterHero

Super Member
Cheesemeister said:
I'm shocked that NTDOY has dropped a dollar today so far. WTF?
This is the "Sell High" part of "Buy Low > Sell High".

So yeah people are selling at what was NTDOY's highpoint ($75). Last I checked it was $65. It's a good time to do that. :p
 

Oblivion

Fetishing muscular manly men in skintight hosery
Fucking awesome. SMG will outsell Sunshine's LTD in a few weeks, and it'll only be 3-4 months since release.

Games that deserve to sell better than their vastly inferior predecessor. :bow :bow
 

kathode

Member
iifu said:
Also, NTDOY is an ADR. The Japanese market has not yet had a chance to react to earnings.

Yep, you shouldn't judge investor reaction until the Nikkei opens in roughly half an hour. And then with all the delays in getting foreign data, just go to sleep and check it tomorrow :D I'm confident in an upswing.
 

Tiktaalik

Member
Pureauthor said:
The world's economy is in the shitter. Most stocks will be dropping regardless of how well their companies actually do.

See - Apple.

Yeah no doubt. That was irritating me the other day. Apple posted some of their best results ever and the stock dropped I think 23 dollars one day? ZUH????

It's obviously a good company so it'll rebound in the long term, but still.
 

Odysseus

Banned
that's a lot of wiis

they're about 2 or 3 months away from doing something i said they'd never do.

surpass the gamecube.

clearly, i was taken out of context.
 

Azelover

Titanic was called the Ship of Dreams, and it was. It really was.
TheRipDizz said:
As for motivation, is it not true they've been having to explain themselves alot as far as 3rd party software are concerned?

Uh, no. That's the spin of the detractors, which frankly is quite pathetic.

Let's at least not spin so hard for a minute. As far as third parties go, they're developers and publishers responsible for their own sales. In charge of creating, developing, publishing and marketing, if anyone has to explain anything it's them. Frankly Nintendo isn't doing anything wrong in that area, it's the companies that aren't doing anything right, including coming up with these "excuses".
 

Eteric Rice

Member
Odysseus said:
that's a lot of wiis

they're about 2 or 3 months away from doing something i said they'd never go.

surpass the gamecube.

clearly, i was taken out of context.

Owned. :p

Sorry, I had to. :D
 
There are more Wiis available than any near-launch home console ever. Now showing up to two years from launches.

I also notice that in terms of units shipped from launch time, this past holiday caused DS to pull away from GBA and PS2.

Actually, speaking of pulling away from the GBA, it looks like this latest shipment data puts Wii slightly ahead of GBA, making it Nintendo's fastest selling system ever for this time period.

Europe has come from behind, and is now DS hardware's biggest region. Japan is in second, and North America third.
 

scitek

Member
The fact that the Wii is about to sell more units in 15 months than the GameCube did in more than 60 is absolutely mindblowing to me.
 

Dash Kappei

Not actually that important
I feel like the thread title's acronym NTDOY screwed up the hugeness this thread was bound to be if the whole Nintendo name + a Europe (!), USA and JAP numbers reference were in the title... maybe it's better this way though :lol
 

USD

Member
Not all that unexpected, but Nintendo is selling a lot more Wii software in the US than anywhere else (absolute and relative to hardware sales). As in more than Japan and Europe/everywhere else combined.
 

Lobster

Banned
This is sales related.

Wii Tie Ratio was actually 8:1 in December says Matt.

http://au.wii.ign.com/articles/847/847472p1.html

US, January 24, 2008 - If you're still under the impression that consumers are only buying Nintendo's new console for Wii Sports, perhaps the latest software to hardware tie ratio numbers from the NPD Group will change your mind. According to the software data tracking service, consumers purchased 8.11 games for every Wii console sold in December. This relates to 7.76 games for every Xbox 360 sold during the month and 5.04 games for every PlayStation 3 purchased in the same time frame.

Very strong sales of titles like Super Mario Galaxy, Wii Play, Mario & Sonic at the Olympic Games, Guitar Hero III and more contributed to Wii's high tie ratio.

While Nintendo's console certainly flourished in December, perhaps signaling the beginning of solid tie ratios to come, it should be noted that Wii's life-to-date software to hardware tie ratio is at 4.64, compared to 4.26 on PlayStation 3 (despite a much smaller installed base) and 7.0 on Xbox 360, according to NPD data.

Remember, this is roughly 8 million owners buying 1 wii game. The article leads you to believe that 1.3 million people bought 8 games per console.
 

mj1108

Member
Leondexter said:
Screw the investors. That's the problem with so many large companies: they're not happy turning a profit every year, even a very large profit. They feel that they must grow, or they're failing. Making $3 billion in profit two years running is considered bad. Making $3 billion one year and $2.9 billion the next is considered "losing money".

The concept of invested shares was not meant to be a buying and selling game. It was meant to work like this: you buy some shares, and you get back profit on each share you have. If the company profits, you profit.

But of course, it turned out you can make more money by buying low and selling high.

Still, that wasn't a problem, either. The problem is that companies are more concerned about their share price than their profitability--because their own executives and shareholders demand it, since they also want the faster cash for their own shares.



I just gotta comment on this has this is something that I've always noticed when a company posts it's earnings. Wall Street analysts will expect a company to post, for example a $100 million dollar profit for a quarter. But damn it all if you happen to have a quarter with a $98 million dollar profit. They then think you failed, you're losing money, etc...and your share price takes a hit -- even though you made 98 million for the quarter in profit. Just because some guy with a suit on, who probably lives in his mom's basement pulled the $100 million dollar number out of his ass as an "expectation", you've ultimately failed.

It's really ridiculous.
 

Dash Kappei

Not actually that important
Wow, so the Gamecube actually received 39 new games in the US during this 9 months period? 8 in Japan.
Was there anything worth it? :)lol )
 
Penguin said:
If my numbers are correct

Wii Worldwide has an attach rate of about 5.6
And in the Americas about 6.8

Not bad numbers considering the ones people usually quote.

Does anyone know what XBOX360's numbers were after 13.5 months? I always hear about how much better 360 software sells, but I doubt their attach rate was any better after the same amount of time.
 

D.Lo

Member
Son.Ralph.Funk said:
Does anyone know what XBOX360's numbers were after 13.5 months? I always hear about how much better 360 software sells, but I doubt their attach rate was any better after the same amount of time.
5.3 as of December 2006, seemingly shipped worldwide. Ironically, back then it was being seen as a bad thing.

"It is natural for us to conclude that the higher the attach rate, the greater the console's appeal to its owners and the bigger the revenue per console for game publishers. However, we believe the unusually high attach rate on the 360 is a sign of an increasingly unhealthy console growth rate, and should be worrisome to publishers and investors...It doesn't take effort to see that a console with an attach rate of 8 and an installed base of 50 million is superior to a console with an attach rate of 12 with an installed base of 20 million," they further explained."

http://www.hollywoodreporter.com/hr...ness/news/e3i74d7f1097c5379d68a04f292200c079f
 

TJ Spyke

Member
Dash Kappei said:
Wow, so the Gamecube actually received 39 new games in the US during this 9 months period? 8 in Japan.
Was there anything worth it? :)lol )

Um, you are reading the chart wrong. For the April-December 2007 period, the GameCube got 0 new games in Japan, 3 new games in the Americas (North America + South America), and 1 new game in Other (Europe, Oceania, Africa, etc.). They sold about 80K GameCube games in Japan during that period. As for that 39 number, I assume you are referring to the 390K GameCube games Nintendo sold in the Americas for the April-December 2006 period.
 
So the Wii's attach rate is higher than 360's after the same period of time? But I thought 360 software sold so much better than Wii software? Looks like I've been lied to all along.
 
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