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Nintendo 2016 Fiscal Year Earnings Release: Targeting 10 million Switches this f-year

TLZ

Banned
Will be interesting how Christmas will look like with the Scorpio out and Pro probably getting a price cut and the Switch with Odyssey.
 

E-phonk

Banned
Switch being on par with 3DS is the best one can hope for.

Not the best (although I know what you mean).

Personally I think that's a realistic point for Switch to end up LTD (60-70 million), but Nintendo themselves seem to go for a higher target - and it's not impossible. If they only get a fraction of the third party support the PS4 gets (a good Fifa AC and CoD would go a long way) combined with the best effort from their first party studio could go a long way in beating that number.

10m worldwide? Lol we aint getting nothing but mario odyssey and wii u ports this year
:rolleyes:
 

noshten

Member
That just shows how much of a bomb the WiiU was. The 3DS did 12 million in its first FY. Switch being on par with 3DS is the best one can hope for.

3DS got a huge price cut in it's first year.
I can see Switch being around 12 million by the end of 2017 without a price cut. So possibly outdoing 3DS by several millions without needing to cut the price(perhaps bundle MK8D for Christmas). Also there is far more software that is potentially multimillion selling titles for the first six months on the Switch:

Zelda
MK8D
Splatoon 2
Minecraft

We still don't have much clarity regarding the lineup for the August-December but potentially we have a few games that have the potential to pass a million by the end of 2017:

Super Mario Odyssey
DQ 11 Switch
Skyrim
FE Heroes
Xeno2
 

marmoka

Banned
10m worldwide? Lol we aint getting nothing but mario odyssey and wii u ports this year

Lol. Zelda and Mario kart are the only Wii U ports.

Splatoon is a sequel, arma is a new game, xenoblade 2 is a new game, fire Emblem warriors is a new game. Even 1-2-switch and snipperclips were new games.
 

Principate

Saint Titanfall
I've actually got a question about this; how much of an impact does the holiday period actually have on the initial sell-through of a new hardware launch? Because I would assume a lot of the early adopters are made up of enthusiasts, so would the time period of launch have that much of a significant impact on the numbers?
Consumers in general buy electronic products (and well gift deemed items in general) in larger volunes during that sales period. Black Friday itself being a particularly strong period in the US. It's the most likely time your going to get someone that isn't an enthusiast to pick up your product which is why the majority of launches try to aim for that spot. It's the easiest way to try to ship a lot of stock.
 

mugwhump

Member
So how's that 10m forecast square with the WSJ report that Nintendo was doubling next year's production from 8m to 16m? Just Nintendo being conservative? Also units produced is different than units shipped, I know.

If that's true, I wonder when we'll see the effects of that increased production on store shelves. I'd guess summer?
 

Zedark

Member
So how's that 10m forecast square with the WSJ report that Nintendo was doubling next year's production from 8m to 16m? Just Nintendo being conservative? Also units produced is different than units shipped, I know.

If that's true, I wonder when we'll see the effects of that increased production on store shelves. I'd guess summer?

You will gradually start to notice it, as it will build up to larger extra quantities over time. The 16 million production is not debunked by this forecast, though there is no confirmation for it either: the 10 million is a forecast, a conservative one I'd think considering the current momentum, and Nintendo could want to surprise investors with better than forecast sales at the end of the year, so 16 million produced is still very much possible.
 
So how's that 10m forecast square with the WSJ report that Nintendo was doubling next year's production from 8m to 16m? Just Nintendo being conservative? Also units produced is different than units shipped, I know.

If that's true, I wonder when we'll see the effects of that increased production on store shelves. I'd guess summer?

It's a conservative projection. And if it's truly correct that Nintendo plans to try for 16 million manufactured by next March, it's a projection that will make them look good the moment they pass it.
 

D.Lo

Member
So how's that 10m forecast square with the WSJ report that Nintendo was doubling next year's production from 8m to 16m? Just Nintendo being conservative? Also units produced is different than units shipped, I know.
Almost certainly. They were burned by bullish forecasts on the Wii U.

I think they can hit 10 by the end of the calendar year easily, it just depends how quickly they can make them. Japan alone could easily eat up a few million for Splatoon.
 

Kouriozan

Member
Almost 3M for the first month, wow thankfully they did increase the production.
Let's hope the stock issues will be resolved soon, then.
 

weekev

Banned
So how's that 10m forecast square with the WSJ report that Nintendo was doubling next year's production from 8m to 16m? Just Nintendo being conservative? Also units produced is different than units shipped, I know.

If that's true, I wonder when we'll see the effects of that increased production on store shelves. I'd guess summer?

Under promise, over deliver. Always the most sensible business strategy.
 

andthebeatgoeson

Junior Member
So how's that 10m forecast square with the WSJ report that Nintendo was doubling next year's production from 8m to 16m? Just Nintendo being conservative? Also units produced is different than units shipped, I know.

If that's true, I wonder when we'll see the effects of that increased production on store shelves. I'd guess summer?
Can't sell 10 million of you only make 8 million so that's the first hint. Two, Nintendo is basically saying, 'Hey, it's only been 1 month.'

People who say that are right on the money.

Now, if the excitement holds and Mario launches by the holidays, I'm wondering how they don't hit 10 million.

November and December can easily move 2 million in NA alone. Maybe more. Black Friday and Christmas? Splatoon, Mario kart, Zelda, and new 3d Mario on deck? I'm trying to remember a similar packed schedule over 9 months. That makes a 2 million December and a close to 3 million November+December easily doable, in NA alone.

That's all speculation but how does the hype die down? It stays up until September and 10 million seems ultra conservative, unless they can't make enough due to a parts shortage and the people who can't find a switch would really hand a beef. Heaven forbid they only have 2 million switches to sell November and December.
 
R

Rösti

Unconfirmed Member
A photo of Tatsumi Kimishima from the news conference:

tatsubgsyg.png


Photo credit: Kyodo via AP Images.

I am waiting for two other photos to become available.
 
How much money did Nintendo actually make? I'm guessing it's the 29 billion yen number, but it's a bit confusing.

102.5 billion yen. or over roughly over $921 million. So let's compare on what analysts had predicted

EARNINGS FORECAST: Analysts polled by data provider Quick expect Nintendo to report a net profit of ¥94.4 billion ($865.6 million) for the 12 months ended March 31, more than five times the year-earlier ¥16.5 billion.

Exceeded.

REVENUE FORECAST: The analysts forecast revenue of ¥477.6 billion ($4.35 billion), down from ¥504.5 billion a year ago and slightly higher than Nintendo’s own guidance of ¥470 billion.

489.0 billion yen. Exceeded.

SWITCH: Nintendo plans to reveal March sales of its console-handheld hybrid Switch, launched globally on March 3. Analysts expect the number to around 2.3 million to 2.5 million, above Nintendo’s initial target of two million.

2.74 million sold to retailers. Exceeded.
 

yurinka

Member
It didn't flop. People may not like the game but it wasn't a flop.
It didn't flop? Do we know its sales? If good they would have mentioned them. But well, in any case being a cheap ass motion sensor minigame compilation its budget may have been pretty low, and considering the small amount of games available I assume it will be profitable.
 

samar11

Member
Rösti;234870274 said:
A photo of Tatsumi Kimishima from the news conference:

tatsubgsyg.png


Photo credit: Kyodo via AP Images.

I am waiting for two other photos to become available.

A photo of him in a conference room looking stressed? ok lol
 

120v

Member
i just find it nuts how well nintendo is able to course correct itself. i mean, companies do it all the time but hardware manufacturing is pretty much make it or break it with a company that size
 

maxcriden

Member
They are only expecting 10 mil switch consoles to be shipped next fiscal year?

So by march 17 2018, a total of 12.74million consoles.

Hmm.. As much as I would like to care, does this make any implication regarding the existence of Pokémon Stars? (Numbers seem a bit low tbh, could be supply constraint?)

:p

Personally, I think it might, yeah. If it's not about only supply constraints, it potentially says to me Pokémon will come in the next FY, where 25M consoles are projected to be sold.

Edit: somehow I didn't think about projections being intended to be outperformed. So, Pokémon could still come this year under that scenario as well.
 

D.Lo

Member
Wait so they made near a billion dollars profit again? Even before the Switch has gotten going?
 
Wait so they made near a billion dollars profit again? Even before the Switch has gotten going?

Yes, along with the sudden surge of 3DS sales thanks to Pokémon [Go], their leftover extraordinary income from the sale of their majority stake in the Seattle Mariners also helped a non-insignificant amount. I say only a portion of it goes towards profit because a good part of it is being funneled into Nintendo's film interests.
 
It makes me laugh that their forecast is essentially to match the Wii U by the end of the fiscal year, and we all think it's too conservative

It says more about that abysmal performance of the WiiU, to be honest. In any case, I believe that they will exceed that figure, if "only" by a couple of millions. Good job, Nintendo!
 

FinalAres

Member
Yes, that is exactly what is releasing this year in its entirety. You nailed it.

That's obviously an exaggeration, but I think the message is essentially, we already know what we're getting this year, although there could be some surprise WiiU ports.

Everything else will come when the userbase is bigger, next year.

And you know what? That's fine.
 

Oersted

Member
Isn't the profit made from selling the Mariners included here though?

That was Quarter 2 of 2016, so yeah.

That's obviously an exaggeration, but I think the message is essentially, we already know what we're getting this year, although there could be some surprise WiiU ports.

Everything else will come when the userbase is bigger, next year.

And you know what? That's fine.

You are overthinking a troll attempt.
 
Id be curious to know how a likely increasing profit margin on every switch sold (presuming it is almost barely profitable now) will affect their numbers.

Considering how the build costs on its own, I don't doubt that the profit margin on a Switch alone is at least one or two dollars at the moment.
 
Nintendo plans to ship 10 million Switch units this fiscal year.

That's going to be another forecast they just wreck

They have to play it safe after 3DS and Wii U both had slow starts in their first year (Wii U's was permanent, I suppose). So Nintendo and others are used to Nintendo underperforming expectations, including their own.
 
Nintendo are overly optimistic with their Nintendo 3DS forecast of 6 million units shipped. That would be just 1 million less than the previous year. They can be happy if Nintendo 3DS reaches 4 - 4.5 million units. At least it is a lock the system will surpass 70 million mark, I wonder if it can make it to 75 million. Below Game Boy Advance but not as far as 2015 results suggested before 2016 Pokémon resurgence.

Does seem optimistic. I'm wondering if there will be a significant price cut and if it will get the next Pokemon game.
 
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