After reporting continuous losses for a long time, making profit is always a good thing.
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Nintendo FY14 Q2: 1.27M 3DS, 0.61M Wii U, 24.2 billion yen profit
- Thread starter 1st Course
- Start date
They're at least in much better financial shape than Sony, though Sony's PlayStation division, unlike the rest of the company, still makes good money.
Of course, Microsoft makes both of these companies look unprofitable by comparison.Though I dare say Nintendo's nest egg from the Wii and DS years rivals theirs and at least CEO candidates and investors don't want to torpedo their games business like Microsoft's have threatened to.
Xbox at Microsoft is very much in doubt - it probably will disappear too if Sony goes under, as Sony will probably in the next 5 years go bankrupt. Sony is its main reason for existing. Considering Sony's situation and Nintendo moving to QoL due to problems selling a home console and the long-term future of handhelds, the writing's on the wall for the generation following Next-Gen I'm afraid. Sony going bankrupt (though not from PlayStation) might make the video game industry crash of the 80s look mild by comparison. I hope when Sony goes bankrupt they'll find a good buyer for PlayStation.
I wonder how those will feature in the reports. Hardware? Software? Sundry other merchandise? Their own category?
Well with declining revenue.
What happens when the current systems are phased out, and Nintendo needs to roll out a new hardware cycle? That requires investments in RND, marketing, etc. with low probability of being successful given the current future outlook of consoles and the types of games that sell. The point is they could just as well re enter a loss period, Nintendo isn't currently in a stable long term position.
I think it's best if they put out a niche product with as little cost behind it as possible, with no intention of growing the 3DS/WiiU combined market but instead aim at being profitable from day 1. This will anger investors though, but that's why QoL exists.
The Abominable Snowman
Member
To me it looks like sales weren't enough to inspire bigger shipments for either of their hardware. The lack of new users seems to be dragging down their software sales as well.
They were able to cut costs and squeeze out a profit which is good. The question is where did they cut costs at?
They were able to cut costs and squeeze out a profit which is good. The question is where did they cut costs at?
You've mentioned bankrupt over and over. Is this one of those 'if I keep wishing, it's gonna come true' moments?They're at least in much better financial shape than Sony, though Sony's PlayStation division, unlike the rest of the company, still makes good money.
Of course, Microsoft makes both of these companies look unprofitable by comparison.
Xbox at Microsoft is very much in doubt - it probably will disappear too if Sony goes under, as Sony will probably in the next 5 years go bankrupt. Sony is its main reason for existing. Considering Sony's situation and Nintendo moving to QoL due to problems selling a home console and the long-term future of handhelds, the writing's on the wall for the generation following Next-Gen I'm afraid. Sony going bankrupt (though not from PlayStation) might make the video game industry crash of the 80s look mild by comparison. I hope when Sony goes bankrupt they'll find a good buyer for PlayStation.
Pie and Beans
Look for me on the local news, I'll be the guy arrested for trying to burn down a Nintendo exec's house.
Well mainly closing down 'foreign' stuff, like closing the European HQ and shuffling off 130 peeps there which happened in June (so...I guess the 'savings' would be around now), no more Official Nintendo Magazine (dunno how much Nintendo really invested into that though), the new consolidated japanese HQ and reorganisation is probably finally starting to work out well, and also I guess they havent really started ramping up R&D much for a new generation.
KratosEnergyDrink
Member
Sony is in a very bad situation since years and it get worse with every year. The bankrupt of Sony in not so distant future is more than likely. Everyone who follows the news about Sony should know that.
LiberaTeExInferis
Member
Is this the very first quarter in the last two or three years that they are making profit?
If yes, it is quite a feat, me thinks..
If yes, it is quite a feat, me thinks..
shinra-bansho
Member
They reduced cost of sales. (Gross margin increased from ~32% to ~47%)
Their SG&A is only slightly less than last H1 comparatively.
1st Course
Member
This myth needs to die. Sony game division margins are completely garbage compared to some of their divisions like Finance and Camera.
Not even the record breaking profits of Wii/DS combo can match Microsoft's "usual" profits.Of course, Microsoft makes both of these companies look unprofitable by comparison.
metalslimer
Member
A terrible 3DS quarter, but it was also a terrible 3DS quarter for games. They don't have a chance at that 3DS forecast, but it seems they will actually profit barring some catastrophe which is nice to see.
with this kind of financial acumen I'm assuming you must write for some gaming publication?
Still weakness in the core operating business but obviously better than last year.
?
Are you talking about Future's magazine?
KillerMan91
Member
Well at least during PS3 era. Now gaming division is looking to make its best result ever while launching a new console (making actually some money instead of losing it). If PS4 sales continue like they do it should become division with decent margin.
theprodigy
Member
Exterminieren
Banned
That Nintendo is making profit again despite utterly anemic sales is encouraging. Not even in the holiday quarter, at that.
test_account
XP-39C²
Isnt that the only Official Nintendo Magazine?
I thought so but there is no Nintendo involvement in it (outside licensing the brand) since it's a magazine published by Future.
So I was wondering if maybe there was something else with the same name...
"beyond the grave, still laughing at ya's,
mess with us and we'll eat ya apples!"
SQUAD
test_account
XP-39C²
I understand. I think that is the only Official Nintendo Magazine, so hes probably refering to the one that you mentioned indeed.
Not bad news for Nintendo. Sucks about the 3DS . I'm guessing alot of people will be waiting for the new 3Ds now and 3DS sales will be sluggish till then. Also, I'm confident Nintendo will stay afloat for next gen. There sticking to there guns and riding out this gen for another 2 years at least.
. I'm guessing alot of people will be waiting for the new 3Ds now and 3DS sales will be sluggish till then. Also, I'm confident Nintendo will stay afloat for next gen. There sticking to there guns and riding out this gen for another 2 years at least.Father_Brain
Banned
They laid off staff at NOA, too, but for whatever reason that wasn't really reported.
It seems Nintendo has hit rock bottom, at least as far as Q2 (jul, aug, sep) operating income is concerned:
fy2011: +30.9 billion
fy2012: -19.6 billion
fy2013: -18.8 billion
fy2014: -18.3 billion
fy2015: +9.3 billion
Hard to say since MS has combined 360 and XB1 shipment numbers. Most estimates in the MS thread put XB1 > 7.3m shipped though, so it is possible that Wii U is third.
Novel Mike
Member
This is certainly good news and I'm glad to see it.
However with the holidays fast approaching I am concerned that Nintendo doesn't seem to be attempting to make any huge push for hardware sales for the holidays. I've seen next to no marketing for either the 3DS or Wii U as of late and this is the time they need it the most. The Amiibo's seem cool but a majority of Wii U owners are very wary about what they will actually do in the other games they've been announced for, there is a ton of things we don't know about these and considering they could be a HUGE seller depending on how they work I'm baffled that we know so little about them (at least we know exactly how they work in Smash).
It also seems to me that at times Nintendo just hates making money, with Smash on the way I think most people thought it would be a given that they would be selling some kind of Smash bundle for Wii U and here we are less then a month away from both Smash and black friday and nothing has been announced (and likely won't be announced the last direct was pretty much the last opportunity to do so). Hell, they could have done a special edition designed system for Smash and that likely would have gotten some people who already have a Wii U to get one.
I am glad we at least have a new bundle for the holidays (Super Mario 3D world) but I am baffled at Nintendo not also trying to do something to get a cheaper version of the system out there, they have had the refurbished ones on their site for 200$ and have done well enough to sell out, why not bring back the 8gig white models they had at launch and price them at 200$? It would be a great entry model and be great for people who just want to get smash and think 300$ with games is still a bit much (with the X1 having a similar bundle at 350$ for the holidays!). That's just a way to do so without just a direct price drop, which would also be a good idea for the holidays.
However with the holidays fast approaching I am concerned that Nintendo doesn't seem to be attempting to make any huge push for hardware sales for the holidays. I've seen next to no marketing for either the 3DS or Wii U as of late and this is the time they need it the most. The Amiibo's seem cool but a majority of Wii U owners are very wary about what they will actually do in the other games they've been announced for, there is a ton of things we don't know about these and considering they could be a HUGE seller depending on how they work I'm baffled that we know so little about them (at least we know exactly how they work in Smash).
It also seems to me that at times Nintendo just hates making money, with Smash on the way I think most people thought it would be a given that they would be selling some kind of Smash bundle for Wii U and here we are less then a month away from both Smash and black friday and nothing has been announced (and likely won't be announced the last direct was pretty much the last opportunity to do so). Hell, they could have done a special edition designed system for Smash and that likely would have gotten some people who already have a Wii U to get one.
I am glad we at least have a new bundle for the holidays (Super Mario 3D world) but I am baffled at Nintendo not also trying to do something to get a cheaper version of the system out there, they have had the refurbished ones on their site for 200$ and have done well enough to sell out, why not bring back the 8gig white models they had at launch and price them at 200$? It would be a great entry model and be great for people who just want to get smash and think 300$ with games is still a bit much (with the X1 having a similar bundle at 350$ for the holidays!). That's just a way to do so without just a direct price drop, which would also be a good idea for the holidays.
TheOnePercent
Member
That's what I had assumed. I thought they had a big initial production in anticipation for that fabled 9 million Wii U goal from last year, and they have been gradually selling off those units since then.
Diddy Kong
Banned
Nintendo making a profit is good for GAF.
If not stopped at least it was slowed down considerably. I'm not sure if I read this or dreamed about it but I think Nintendo made a very big first production of WiiUs that it's still unsold (that's why they can't lower the price).
I don't know if this big first production is 7 million, or something more like 10 million but I wouldn't be surprised if Nintendo was still selling today Wii U's made in the first batch.
Canis lupus
Member
Why would they do that and still ship another 600k consoles? NPD, Chart track and Japan numbers don't suggest it sold through more than that.
Rösti;136408123 said:Excellent news, I'm glad to see the negative trend (losses) has come to a halt. What intrigues me the most is the briefing tomorrow however, mainly becuase of what it's being called:
Historically, only one Corporate Management Policy Briefing has been holden annually (calendar year) either in January or October. Meaning that this calendar year, we will have had two of these briefings! Prepare for megatons, even gigatons. I say.
Shame David Gibson won't be able to live tweet though, but we'll get the slides soon enough anyway.
I'm very glad to hear this.
Oh interesting. I definitely expect solid QoL information then. Back in January Iwata did say that Nintendo would announce more of its plans for QoL before the end of the year, and I can't think of a better time than at that meeting, in front of the same groups of investors that they made their first QoL announcements to.
BRocknRolla
Member
Definitely interesting. Glad they could turn a profit, even if it's nothing to write home about. Nintendo has some serious issues to address in the coming years, but at least for now they're turning out excellent software and keeping themselves going financially.
I would definitely like to see them wade into the holiday battle with some strong reduced pricing offerings, but maybe they don't feel they have a lot of wiggle room for a push.
I would definitely like to see them wade into the holiday battle with some strong reduced pricing offerings, but maybe they don't feel they have a lot of wiggle room for a push.
Nintendo also had a period where they bought back unsold inventories of the Basic unit before discontinuing it, which led to weirdness like Other actually managing negative shipments one quarter. I'd guess those used were sent back to assembly to be repackaged into Deluxe units.
I think the rumor was they've already produced 10m Gamepads, which is also used as an argument against decoupling it from the console.
Pie and Beans
Look for me on the local news, I'll be the guy arrested for trying to burn down a Nintendo exec's house.
Any idea on numbers?