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Nintendo FY14 Q2: 1.27M 3DS, 0.61M Wii U, 24.2 billion yen profit

BKK

Member
Pretty dire Other/PAL sales for Wii U, just 320k for the last 6 months. Barely over 50k/month despite the release of Mario Kart 8.
 

Muzy72

Banned
The era of Nintendo losses finally over? Excited for good results next quarter!

Surprised they're still aiming for 12 million for 3DS. Maybe they can reach it if New 3DS launches in the west in Q4?
 

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Businessweek:

Nintendo Co. (7974) posted second-quarter profit that beat analyst estimates, helped by demand for new games including Super Smash Bros. and Mario Kart 8 and a weaker yen that boosted the value of overseas sales.

Net income was 24.2 billion yen ($224 million) in the three months ended Sept. 30, compared with a loss of 8 billion yen a year earlier, according to figures derived from first-half results the Kyoto, Japan-based company reported today. That compares with the 5.74 billion yen average profit of four estimates compiled by Bloomberg. The company booked a 15.5 billion yen gain in the fiscal first half from the weaker Japanese currency.

President Satoru Iwata is releasing new titles and a lineup of figurines that interact with games to help revive sales of the Wii U game console during the holiday shopping season. Nintendo, which hasn’t had consecutive profitable quarters since the console’s release in 2012, is counting on software to drive demand for hardware and stem a shift by consumers to smartphones and Sony Corp.’s PlayStation 4.

“The main thing is the December quarter where they make all their money,” David Gibson, head of research at Macquarie Group Ltd. in Tokyo, said before the earnings announcement. “That’s the most important thing for Iwata, to prove that he can make his numbers this year.”

Nintendo left unchanged its forecast for full-year profit of 20 billion yen and sales of 590 billion yen.

http://www.businessweek.com/news/2014-10-29/nintendo-earnings-beat-estimates-on-super-smash-bros-yen
 
That can't be right can it? Holy assmunch. New nintendo system in 2015/16?

MK8 launched in at the end of May, so it was Q1, not this new quarter. You also have to remember that this is shipped to retailers, not sold to consumers and there would have been lots of units unsold sitting on shelves from previous quarters.
 

Chaos17

Member
R1vmqPR.gif

From pdf.
 
About how many hours until the briefing? I think there's a good chance we'll hear at least something about the QoL thing considering Iwata initially said in January that he wanted to share more info by the end of the year.
 

wrowa

Member
Looking at the 3DS numbers I really don't think that the New 3DS is a good idea. I'm not convinced that the new iteration is enough of an improvement to boost sales for an extended period of time. It looks to me like Nintendo is about to repeat last generation's mistake, that is waiting too long before they launch a successor. Judging by the current sales, the 3DS line might very well be dead by holiday 2016 (which is around the time I'd would expect a successor). Once again, Nintendo would have lost all mindshare by the time they launch new hardware.
 
Hmm, previous two quarters' Wii U software was up YoY, but this quarter is down slightly. Probably mostly to do with launching less games this quarter compared to last year.
 

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Exited for the briefing.

- One will most likely hear of the adoption rates of DLC for Mario Kart 8 (pre-orders)
- Their strategy for Amiibo
- Announcements related to licensing opportunities

Nintendo will not discuss of QOL until Q3's meeting.
 

KingSnake

The Birthday Skeleton
Pretty dire Other/PAL sales for Wii U, just 320k for the last 6 months. Barely over 50k/month despite the release of Mario Kart 8.

Europe had so many Wii U sitting in stores and warehouses that it had negative shipments for 1 quarter at some point. Based just on the info from France it should be more actually sold in H1.

Edit: Japan has become their worst region looking at net sales. If that's irreversible, maybe we'll see a more Western focus from Nintendo in the future.
 
so they are still slightly ahead of the X1?

MS has obfuscated shipments of XB1 by using the Sony tried and true method of combining system shipments, in this case XB1 and 360

That being said the absolute lowest estimates [by gaffers] for XB1 WW shipments in the same timeframe were 7.3M and it was likely to be somewhat higher so chances are XB1 has outshipped Wii U WW as of this past quarter
 
Nice to see a profit for once , and a decent one at that. Should definitely be a good Christmas for the WiiU given smash and the library of classics the systems built up now. I know I'll (hopefully) be doing my part (if I can find a good enough bargain for it).

Still a lot of dark clouds on the horizon though. WiiU sales might have jumped but still didn't escape the toilet, and while software sales are great for it that also shows it's still only really selling to the hardcore fans and not expanding into the more casual/family market they need. And jeebus they are dead in Europe. That's just shockingly low sales for such a big market.

Worse is the 3DS of course. It'll be a miracle for it to hit it's sales target, even with the N3DS in Japan and Australia.

Infact I'm really worried about the media create thread later today. Even with N3DS sales the 3DS has been down year on year. If that was just due demand outstripping supply, then alps good, if it's still down YOY now stocks getting more freely available, then that's really a very, very worrying sign.

And then there's next year, with no properly new platforms likely, only one major WiiU title left in the form of Zelda, and likely further eroding handheld sales. Really hope they'll have shown us something bloody amazing in 12 months, or this profitable spell may well have just been a last gasp before really sinking.
 

Madao

Member
well, looks like nintendo can let the wii u pass while they prepare for next gen since they're not losing money anymore.

i never doubted they'd be able to get to this point. it was like this on the GC days at one point.

it's too bad the 3DS is collapsing. hopefully the redesign keeps it rolling for a bit more (though i still think they should have gone full sucessor for next year instead)
 
This bodes well for their future plan to consolidate development. The smartphone threat probably can't get far more acute. To make a healthy quarterly profit with a catastrophic console, a collapsed handheld, and negligible third party licensing fees is a good sign. If they use their resources more carefully, I think Nintendo can continue as a hardware maker for a while longer.
 
There's a Q&A up later today, right?

There's an investor briefing at 10AM JST on the 30th of October (tomorrow morning, Japan time). We'll get digital versions in English of the slides and a transcript of the speech tomorrow, but the Q&A won't be up until a day or so later in Japanese, followed by an officially translated English version a couple of days after that (I'd guess Monday Japan time).

Unfortunately, due to a change in his company's policy, @gibbogame (aka David Gibson) won't be able to live-tweet the event, iirc, as he has done in the past.
 

Sandfox

Member
Well this is a move in the right direction. Now we just need to see Iwata's other plans for the next two or so years and see if Nintendo can come up with some good product ideas.
 

BKK

Member
Europe had so many Wii U sitting in stores and warehouses that it had negative shipments for 1 quarter at some point. Based just on the info from France it should be more actually sold in H1.

Edit: Japan has become their worst region looking at net sales. If that's irreversible, maybe we'll see a more Western focus from Nintendo in the future.

They've only shipped 1.88m in total across the whole "Others" region, which includes the whole world outside of Japan and Americas. If the channel is still stuffed with even that small total then it just goes to show how much of an irrelevance Wii U is in PAL/Others. In comparison it has shipped 630k in H1 for a total of 3.43m in the Americas.
 

LOCK

Member
Things I notice:

Inventories have dropped to a more normal amount. That's why we are not getting N3DS this year, their warehouses are still full even after this drop.

More importantly the 3DS has an attach rate of 4.09
 

allan-bh

Member
Things I notice:

Inventories have dropped to a more normal amount. That's why we are not getting N3DS this year, their warehouses are still full even after this drop.

More importantly the 3DS has an attach rate of 4.09

Unless USA and Europe have good deals for holidays, 3DS sales will be bad. People know that n3DS is coming.
 

Griss

Member
I don't see why the release of the New3DS means they won't have something new ready to show at E3 next year and perhaps release early 2016. The 3DS needed a revision, and there's a bunch of great software out there that Nintendo hopes to keep selling, and the New3DS will help them do that. The 3DS is clearly reaching the end of its life, but why not do everything you can to prolong that life and eke profit out of it? Why not try and keep the 3DS alive right up until your new console launches in a year and a bit? Makes sense to me.

Now, if Nintendo believes that the N3DS will carry them for the next 2-3 years, then they're in cuckoo land. But there's no reason to believe that that's the case. The big guns have been fired for the 3DS, most of its great games released. The release schedule going forward is pretty sparse. I'm convinced Nintendo already has at least a team or two working on software for a new handheld. I bloody hope they do.

The WiiU is still dreadful, and will never be alive in Europe. Sad that MK8 and DK have had so little effect. But what's positive is Nintendo finding a way to eke profit out of their situation, like they used to. Amiibo will be the ultimate expression of this, and I hope it succeeds.

Next year could be really rough sales-wise, but we all saw that coming ages ago. By E3 we should have a much better idea of the direction of the company.

Either way, it feels like the horrible period of crisis for actual Nintendo fans is over for a little while, even if it's just the eye of the storm for the actual company. We used to have a 'Nintendo is fucked' thread open every day, and there was much wailing and gnashing of teeth over the Wii U's situation, but for the last 6 months it's been nothing but talking about all the great games they've given us, which has been such a nice change. Long may the quality software and net profits continue.
 

Aostia

El Capitan Todd
a better shape than expected and a change in the most recent fiscal results. it seems that the worst is behind? but the launch of a new product in 2015 (QOL) or 2016 (4DS) could re-change the shape for the worst (due to R&D and promotional costs). hopefully at least their R&D re-assestment is almost done, so these costs will not affect their fiscal results anymore
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
Aaah, operating loss almost zero and no Pachter saying there's no investor meeting. Things couldn't be better this year! :p
 
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