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[ElectricKaibutsu]

Again, I'm no accounting freak but shouldn't the research costs have been accounted for when in previous years as research happens before a product enters development? I guess development of the Wii U did not just start this year.
And development costs should be depreciated over the useful life of the Wii U, right? So how does it come that R&D costs have a huge impact on profitability this year, if this even is the case?

Serious question here.

You're saying, the Wii U R&D wasn't factored into this past financial year anyway? That's true. It was the year before when they dropped the price of the 3DS plus the Wii U R&D which put them in the red. Still, big youth isn't wrong. They have no big expenses any more for the next couple years, and just need to focus on getting out great games to sell systems. If they made a profit this year then they will almost definitely make a profit next year as well.

 

[Pyrokai]

Wait...they MADE a profit? How could these analysts be so far off?

 

[Shiggy]

You're saying, the Wii U R&D wasn't factored into this past financial year anyway? That's true. It was the year before when they dropped the price of the 3DS plus the Wii U R&D which put them in the red. Still, big youth isn't wrong. They have no big expenses any more for the next couple years, and just need to focus on getting out great games to sell systems. If they made a profit this year then they will almost definitely make a profit next year as well.

I misunderstood what he said, but it was more a general question anyway to when these R&D expenses have an effect on profits.

 

[Cheebo]

Wait...they MADE a profit? How could these analysts be so far off?

They weren't off. Their operating loss was pretty big.

 

[ElectricKaibutsu]

They weren't off. Their operating loss was pretty big.

But, yes, they did make a profit (thanks to the exchange rate).

 

[Road]

They weren't off. Their operating loss was pretty big.

They were way off with their expectations:

Analysts expected: 18.7 billion of operating loss
Nintendo posted:   36.4 billion of operating loss

Analysts expected: 14.0 billion of net profit
Nintendo posted:    7.1 billion of net profit

Someone forgot to multiply and divide by 2. =P

 

[Pyrokai]

So they made a profit, but by luck, essentially? Is this correct? Their operations, under normal conditions, would have lost them money but instead they gained money overall, right?

This needs to be dumbed down for me to the lowest denominator, lol.

 

[Conor 419]

So wait, Bloomberg/OP were wrong?

 

[Mihael Mello Keehl]

So wait, Bloomberg/OP were wrong?

Yes, the loss was doubled.

 

[Conor 419]

Can someone summarise, did Bloomberg think Nintendo would make an overall profit or loss? Did Nintendo make an overall profit or loss?

 

[jcm]

So they made a profit, but by luck, essentially? Is this correct? Their operations, under normal conditions, would have lost them money but instead they gained money overall, right?

This needs to be dumbed down for me to the lowest denominator, lol.

They lost money selling video games. They had a bunch of $/€/£ in the bank that are worth more yen this month than they were in January, due to the exchange rate. That difference in value is the profit they made.

Example: I have $100 in the bank, and the exchange rate is 80 yen per dollar. So I have 8000 yen. 3 months later, the exchange rate is 100 per dollar. Now I have 10000 yen, so I've added 2000 yen to my net profit.

Can someone summarise, did Bloomberg think Nintendo would make an overall profit or loss? Did Nintendo make an overall profit or loss?

Blomberg said Nintendo would lose 18B yen selling video games. Nintendo actually lost 36B yen selling video games. They did worse than Bloomberg expected.

 

[Conor 419]

And so the extra loss was yet negated by an exchange rate?

 

[Cheebo]

So they made a profit, but by luck, essentially? Is this correct? Their operations, under normal conditions, would have lost them money but instead they gained money overall, right?

This needs to be dumbed down for me to the lowest denominator, lol.

Bloomberg predicted 18 billion operating loss, it was about double that. So they did way worse than expected. Bloomberg was saying 14 billion of net profit, the focus was operating loss/profit.

Basically Nintendo posted numbers twice as bad across the board than analysts predicted.

 

[jcm]

And so the extra loss was yet negated by an exchange rate?

What are you looking for here? The results were much worse than forecast, period.

The forecast was:
operating loss: 18B
net profit: 14B

Actual was:
operating loss: 36B
net profit: 7B

 

[Daingurse]

it was a beefy game. i doubt it met their expectations with those numbers.

One of the best games I own on 3DS. Too bad the controls are borderline unplayable and fucking irritates the shit out of my minor nerve damage. . .

I just purchased a grip, because the OG 3DS is the most uncomfortable handheld I've ever owned in my life. But I'm not sure if this will even help with the strain Kid Icarus's controls place on my hands.

But man software sales are abysmal, games Nintendo. . . You need them as soon as possible, which is bad because we already know how long Wii-U owners need to wait for the likes of fucking Pikmin 3. No idea why that is taking so long to come out, at all.


Probably Miyamoto's perfectionist ass haha.

 

[airmangataosenai]

if they sell 7m wii us between now and next year at this time, i will be kinda surprised. europe is pretty much a dead market, and japan doesn't buy consoles like they used to. that leaves a disproportionate amount of weight on america to pick up the slack. 4m in north america over the next year would basically be what the 3ds looked like last year. but they expect 9m, so another 3m in europe, and 2m in japan? not sure how they expect things to go down.

Let's break it down.

1st quarter is a wash, they'll be lucky to match this past quarter with no software releases whatsoever and no price drop likely through July. 500k (500k Total)[/B

2nd quarter will see Pikmin, Wii Fit, and 101 most likely, potential pricecut too sometime in the middle or towards the end of the tracking. How much will this help? Let's be insanely generous and say a 300% increase in sales. 1.5 million (2 million Total)

3rd quarter is the holiday, 4th is the new year. Let's be crazy optimistic and say everything went as planned and all software they needed made it out for the holidays/ We got Mario, Zelda, the whole shebang. They would need to be able to ship 7 million units in 6 months, when they already have roughly 1 million in excess stock rotting on store shelves currently. 7 million units in 6 months represents a 700% increase over the current status quo. You can never say never but after a certain point you can say it's highly unlikely.

Iwata is sabotaging his company with estimates like this and the ones for the 3DS. The 3DS is currently looking to be down YoY and yet he's predicting such a huge increase that they will also have to surely revise. 15 million would be an awesome number for them to hit but even if they succeeded in reaching it, the results would be sullied by Iwata allowing such irresponsible predictions to be made public.

 

[Dion Blaster]

Ehh, I thought they were both pretty incredible games. *shrug*

I'm playing Wind Waker again right now and it's awesome. But if there wasn't cut content it could have been the best Zelda ever imo. Hopefully Nintendo adds a little something for the Wii U version, just a few fixes might make it my favorite game ever.

I still hate Sunshine.