Mysterious
Banned
They just released this document. Can some please clarify what it means?
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Nintendo releases modified full-year financial forecast (expects lower sales/profits)
- Thread starter Mysterious
- Start date
Obliterator
Member
If I'm reading it correct they are not going to sell as many consoles as they forcast
LightningXCE
Member
Seems they are revising their estimates to forecast lower sales and income through March of this year.
Cheesemeister
Member
The yen has dropped like a rock in the past few days. Operating income forecast slashed by a third, net income per share halved.
Obliterator
Member
Aka Nintendo needs NX ASAP
astrogamer
Member
So they revised 3DS hardware and software down and Wii and Wii U software up and are predicting a somewhat smaller revenue (with partial due to yen strengthening)
Maybe I'm misunderstanding the second page, but how odd is it that they expect to sell less Nintendo 3DS hardware in their revised forecast, yet aim for more software sold for both Wii and Wii U than previously expected?
EDIT: Lol post right above mine, so yeah, that's correct...In which case, how very odd, you'd think they'd trust the 3DS to pull through with all the Pokémon bundles and whatnot. Wii U I can see them being more confident on because Pokkén will benefit from the 20th anniversary hype, and there's Twilight Princess HD too, but what made them suddenly revise software sales for the freakin' Wii, and quite optimistically at that, to boot?
OH, right, right, that must be it.
EDIT: Lol post right above mine, so yeah, that's correct...In which case, how very odd, you'd think they'd trust the 3DS to pull through with all the Pokémon bundles and whatnot. Wii U I can see them being more confident on because Pokkén will benefit from the 20th anniversary hype, and there's Twilight Princess HD too, but what made them suddenly revise software sales for the freakin' Wii, and quite optimistically at that, to boot?
OH, right, right, that must be it.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
It was only a matter of when; surprised management didn't update their guidance at Q3.
That's a big slash though, operating income slashed by a third, and net income by half.
Bleak.
Edit: Good news though, Wii software sales forecast have increased by 75%!
That's a big slash though, operating income slashed by a third, and net income by half.
Bleak.
Edit: Good news though, Wii software sales forecast have increased by 75%!
Zelda? This is only a quarter report right?
Strangelove77
Member
Nintendo Selects.
Yen tanking was likely unexpected.
eyeball_kid
Member
Are they not giving any guidance on sales of their upcoming mobile titles?
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
The company's forecast were going to be modified regardless of the yen tanking or not; it's much more pronounced though now, for sure.
Don't they hedge forex too in order to limit their impact? I mean, Nintendo seem much more affected than their Japanese peers on currency movement.
Edit: "As a result, we expect approximately 20.0 billion yen in foreign exchange losses to be reflected in non-operating expenses"
ProcrasDANation
Neo Member
Despite what people have posted here the yen has strengthened on the back of volatile European markets forcing people into safe havens like Japan. A stronger yen means the value of USD and other foreign currency sales has limited effect and thus profit is impacted.
The updated forecast in sales is slightly down but not commensurate with the full impact on operating income meaning that there were some unforeseen expenses coming in (potentially impairment / write downs,
The updated forecast in sales is slightly down but not commensurate with the full impact on operating income meaning that there were some unforeseen expenses coming in (potentially impairment / write downs,
Oh they were certainly going to be modified down, I was speaking on the relative severity and why now. Weak holiday for the 3DS really hurt them.
They hedge but they also play currency change for higher revenue where they can. That pendulum swings both ways.
That said for a year like it and the coming one,it will be interesting if they maintain profitability. Also I think they may be doing write downs and other costs reporting here. Potentially future costs.
kuroneko0509
Member
why people saying yen is weaken when it is i believe the opposite?
clay_ghost
Member
Earning overseas will decrease once converted to Yen beacuse of the stronger Yen?
ProcrasDANation
Neo Member
If I sell a WiiU in America for USD300 then if the yen is weak then that USD300 buys more yen. If the yen strengthens that USD300 is worth less.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
The only potential asset I see Nintendo writing down are the developments done in QOL prior to Iwata's death.
I think there was a $100M investment done in the technology space back in 2014? Duno.
It's too early, I shouldn't be posting...
original post below
original post below
I'm afraid this means NX will be delayed, or at least it's manufacturing will be delayed meaning less console shipments than earlier expectatons.
I don't get it. Just release the new Pokemon games in other platforms and earn millions
I don't get it. Just release the new Pokemon games in other platforms and earn millions
astrogamer
Member
Interesting that last quarter they were practically meeting their forecasts except for net sales and now they are scaling it down. There must be some large write down or something for this quarter.
Also, looking at the Wii and Wii U software sales, it makes a lot of sense why they would move them up seeing how Wii software sales were 6.18 million for the year and Wii U were 22.62 million for the year. Pokken and TPHD should pretty easily make 3.5-4 million and the remainder should be covered by tail sales from Splatoon ,Mario Maker and Mario Tennis
Also, looking at the Wii and Wii U software sales, it makes a lot of sense why they would move them up seeing how Wii software sales were 6.18 million for the year and Wii U were 22.62 million for the year. Pokken and TPHD should pretty easily make 3.5-4 million and the remainder should be covered by tail sales from Splatoon ,Mario Maker and Mario Tennis
The NX is not going to be released next month. Why would a forecast for a year ending in a month be relevant particularly relevant for a console that is going to be released in at least 6 months.I'm afraid this means NX will be delayed, or at least it's manufacturing will be delayed meaning less console shipments than earlier expectatons.
I don't get it. Just release the new Pokemon games in other platforms and earn millions
Dunno. The change is pretty drastic which makes me think major right down now, maybe to have a better looking next year on the heels of NX.
They weren't that far off expectations previously... Doesn't add up.
Ninja Sharingan
Banned
Would this include losses due to next gen development? R & D etc. I have no real idea
OK I feel realy stupid right now, why did I even assume was talking about next year....
I think those were always included in the guidance.
Story is basically this:
- Exchange rate is tough for Japanese yen
- 1M fewer 3DSes sold than predicted.
- 9 million fewer 3DS games sold.
- Wii U and Wii software up a little, but not enough to make a difference.
- Lowering revenue expectations by 12.2 percent
That's revenue. Operating income lowered by 34%.
Lowering the expected 3DS HW and SW numbers, while increasing the expected Wii U software numbers seems identical to what they did one year ago, but IIRC it was adjusted already in the quarterly report.
Gamer @ Heart
Member
Bad enough when you dont meet sales expecation but the added kick of converting all profits into yen when it's down must suck.
How do other companies tend to get around stuff like this? I know there is a way for corporations to hold money outside the country that is often cited as a tax loophole no? I'm so out of my depth, but curious.
How do other companies tend to get around stuff like this? I know there is a way for corporations to hold money outside the country that is often cited as a tax loophole no? I'm so out of my depth, but curious.
Tatsumi Oga
Banned
Didn't they say last year they expected a huge profit with NX sales? They expected to sell a lot of it. I recall something like that.
Eolz
Member
The cost could be linked to having to produce wiius in japan again too...
But seriously, I don't think Kimishima will have too many difficulties dealing with the investors this year/at next meeting.
Will be harder once miitomo is released for more than a month and once they announce NX.
At least it will be harder for them to not talk about it this time, with even them acknowledging the 3DS is dying.
But seriously, I don't think Kimishima will have too many difficulties dealing with the investors this year/at next meeting.
Will be harder once miitomo is released for more than a month and once they announce NX.
At least it will be harder for them to not talk about it this time, with even them acknowledging the 3DS is dying.
Pokemaniac
Member
That is for next fiscal year. This forecast is for the current fiscal year which ends in March.
Nintendo Halves Profit Outlook on Weak 3DS Sales, Strong Yen
http://www.bloomberg.com/news/artic...ual-profit-forecast-amid-weak-christmas-sales
http://www.bloomberg.com/news/artic...ual-profit-forecast-amid-weak-christmas-sales
FTFY
It's the opposite. The low yen kept them afloat the last few years, because if you convert the earnings from foreign markets into yen, you get obviously more of it, when it's relatively weak. Now the value of the yen is rising, which is the whole problem.
It has nothing to do with how popular the Wii U is compared to the 3DS in terms of sales but rather how much they expected to sell. Since the financial year is coming to an end they now know if their previous estimates was correct or not.
Incorrect.
The Yen has strengthened against the USD in recent weeks as investors look for safe havens because central banks, Japan included experiment with negative interest rates.
As Nintendo books considerable sales from the US and Europe this means less revenue in JPY than expected. That and the Wii U continuing to drop off a cliff doesn't help. Hopefully NX and their mobile efforts will help in the coming years.
1st Course
Member
Make sense they would lower the 3DS forecast, it was way too high.
No NX before march
Movalpolos
Banned
They best keep their forecasts in check for NX if they are releasing this year.
Tatsumi Oga
Banned
Hate to sound stupid, but i never really get these things. That means March 2017 or this March? It's a bit unclear to me.