Ah, pretty much near from what I expected. This might sound silly, what about MS and Sony? I'm curious with their cash in hand.
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Nintendo Q1: Wii reaches 100 m (3DS 32.48 m/Wii U 3.61 m), Posts Q1 Profit
- Thread starter Deeku
- Start date
Ah, pretty much near from what I expected. This might sound silly, what about MS and Sony? I'm curious with their cash in hand.
MS around $70b and Sony around $8b? I think.
megabytecr
Member
It is expected. New console, price is higher than mass market price (200-250) and best of all NO GAMES.
Shit Einstein, Wii U is not selling.
They should have launched this year, the year in advanced has only done damage to the Wii U in terms of Doom articles everywhere, but I guess having a small near 4m console lead is good.
Shit Einstein, Wii U is not selling.
They should have launched this year, the year in advanced has only done damage to the Wii U in terms of Doom articles everywhere, but I guess having a small near 4m console lead is good.
Katana_Strikes
Member
I don't know if they've been posted or not available, but is there any sign of those colourful slides they do comparing other platforms and top games sold in the period?
Apophis2036
Banned
Jesus, he might aswell walk now...
I would say that the 3DS business is not doing good by itself. It's probably profitable, but there's plenty of room between profitable and good.
Is there any reason to believe that DD-only titles have a material impact on Nintendo's bottom line?
Do you honestly think that eshop represents 50% of sales when nintendo themselves get excited when a title has a 80:20 retail to digital sales ratio. No way to spin it 3DS software sales are way down from DS.
First quarter doesn't get a presentation. No slides.
MSFT: $77.0B in cash and short term, $12.6B in debt
SNE: $16.2B in cash and short term, $10.9B in debt
NTDOY $8.8B in cash and short term, 0 debt
Actually, those digital sales are included. They only exclude digital sales for titles that aren't sold at retail. This may be new; they changed the language in the earnings release.
Magicpaint
Member
I'm not talking about retail titles that have DD versions (which would be accounted for in that comparison). I'm talking about DD only titles that cannot be found at retail. Of course 3DS software sales are down from the DS, but that doesn't mean that comparison is reliably accurate.
I'd agree there. But that's probably also where we differ. Then again it's not like our opinions matter to Nintendo
To the extent that 3DS software sales suddenly compare favourably against DS sales? Unlikely. But it'd certainly look better from a revenue standpoint.
FreedomFighter
Member
Wii happen. It'll do better than you think this holiday.
Like all that is mutually exclusive. What a silly thing to say.
No it won't, it'll drop like it has been since 2010. It's dead in Japan, and Europe sales are always under US sales.
Given Wii did 900k in the US last holiday, I don't know what you're expecting this year.
FreedomFighter
Member
The PS1 is somewhere over 101million. The Wii will reach that easily.
Nope, PS1 is 103.5m.
perfectchaos007
Member
Hard to believe Nintendo posted a profit despite the WiiU. I wonder how low sales would have to be before they decide to cut their losses and drop support like they did with the virtual boy.
Apophis2036
Banned
They have several weapons to use before they would ever give up on the system.
1.Marketing.
2.Price Cut.
3.Big name exclusive software in the next 18 months.
If the system is still selling like it is now in April 2015 then I think they will quickly move on and show their next console at E3 2015 with an Xmas 2015 launch. It's that or either just pull out of the console business, make games for PS4/XBO and continue to support 3DS and it's successor.
Wickerbasket
Member
They posted an operating loss though, which isn't good. The fact that they posted an overall profit has more to do with an increase in the value of their foreign assets due to favourable exchange rates with the yen rather than the company doing well.
The operating income is basically basically the gross income minus the operating expenses, so I would say it's a better indication of the health of the company.
Obviously I think it could be much worse for them, but things aren't exactly great.
I have no Wii U regrets.
My only issue is that it's clear Nintendo really didn't handle the jump to HD well and marketed the console all wrong but ah well I hope it means Nintendo is working triple hard to turn the Wii U around.
Those happy with Nintendo's mismanagement should really reflect upon what this hobby means to them really if they would be happy with Nintendo quitting gaming.
My only issue is that it's clear Nintendo really didn't handle the jump to HD well and marketed the console all wrong but ah well I hope it means Nintendo is working triple hard to turn the Wii U around.
Those happy with Nintendo's mismanagement should really reflect upon what this hobby means to them really if they would be happy with Nintendo quitting gaming.
metalslimer
Member
I won't be happy, but i will be when iwata and the rest of the board is jettisoned out of nintendo and miyamoto is locked away in a room with a 10-20 person dev team
Do you actually believe that has a realistic chance of happening?
I personally wouldn't wager a lot of money on either of those scenarios happening.
ComputerNerd
Banned
There are two important things to note, year over year, from looking at their financial statement.
http://www.nintendo.co.jp/ir/pdf/2013/130731e.pdf
Numbers in parenthesis is negative.
So looking briefly, even though revenues dropped 3.85%, COGS declined 24.68%, which led to their Operating Income loss to decline 52.34%.
On top of that, they stated:
So they're continuing to lower Wii U hardware manufacturing costs.
Overall, they're making good progress considering the disaster of the Wii U launch.
http://www.nintendo.co.jp/ir/pdf/2013/130731e.pdf
Numbers in parenthesis is negative.
Code:
Q1 2012 Q1 2013: (in yen) Change
Net Sales (revenue) 84,813 M 81,548M (3.85%)
Cost of sales (COGS) 59,937M 45,144M (24.68%)
Gross Profit 24,876M 36,404M 46.34%
Operating Income (10,331M) (4,924M) (52.34%)So looking briefly, even though revenues dropped 3.85%, COGS declined 24.68%, which led to their Operating Income loss to decline 52.34%.
On top of that, they stated:
Nintendo said:
So they're continuing to lower Wii U hardware manufacturing costs.
Overall, they're making good progress considering the disaster of the Wii U launch.
lwilliams3
Member
I seriously hope that you are not betting your happiness on the chances of that happening.
I guess in summary: it is good that they posted a profit, but its generally not cool to rely on the unpredictable foreign asset exchange. They were fortunate this quarter, but that may or may not be favorable next quarter. It's obviously good for be short term, but its too unstable to count on for he long term. Nintendo is counting on some massive gains soon, so we will see how that will go.
ComputerNerd
Banned
Their forecasts include the Yen strengthening from 98Y/D to 90Y/D by fiscal year end. So we'll see how that goes.
I think Japan being a relatively small country don't allow many retailers to keep a room full of unsold Wii U games.
StreetsAhead
Member
Japan has also had significantly fewer games hit retail. At the end of reporting period, there was 24 games out in Japan at the end of report, while the US had about that many at launch.
shinra-bansho
Member
Less room for landfills.
Apophis2036
Banned
StreetsAhead
Member
Also those heat waves !
That ceased being funny well before the thread it started in finished, you know.
shinra-bansho
Member
Regarding the software. Based on revenue figures, US sell-through is ~3M units.
In all likelihood more than half of those Americas Wii U software shipments are sitting on shelves or in warehouses.
I think it's been mentioned before in Media Create, retailers are less likely to have returns provisions, so they're less likely to take on inventory they don't think will sell. So that might be why the software numbers for Japan are less inflated.
Actually, does anyone know the policy on financial reporting when retailers return goods?
In all likelihood more than half of those Americas Wii U software shipments are sitting on shelves or in warehouses.
I think it's been mentioned before in Media Create, retailers are less likely to have returns provisions, so they're less likely to take on inventory they don't think will sell. So that might be why the software numbers for Japan are less inflated.
Actually, does anyone know the policy on financial reporting when retailers return goods?
I think the PS3 will ultimately pass 100M if it manages to retain strength in Europe and expands in emerging markets. The PSP still sells surprisingly well in Europe for instance.
Doc Holliday
SPOILER: Columbus finds America
Nintendo will not abandon the wii u no matter how badly it does. They stuck with the gc for 5 years despite getting its ass kicked. They still posted a profit, that's the bottom line.
Things need to get even worse before Nintendo decides to change direction. That last 2+ years of the wii and the wii u launch did nothing to change their mindset.
Things need to get even worse before Nintendo decides to change direction. That last 2+ years of the wii and the wii u launch did nothing to change their mindset.
clem84
Gold Member
Sales figures for 3DS are so good, and the ones for WiiU so bad, that it seriously makes me wonder if the 3DS wasn't around, if Nintendo wouldn't pull the plug on WiiU. If they're barely making a profit with such a good performance from the 3DS, the WiiU must cost them a fortune.
nintendo had 960,000 wii us sold in japan, or 50,000 sitting on store shelves. in the us, they sold about 1.2m even, and have 380k sitting on store shelves (that's going to last them through at least november without something drastic happening).
not sure about europe. we never get numbers from there. it's my theory that the tyrannical monarchy of great britain is to blame. they prevent other countries from releasing numbers under the threat of war.
pieatorium
Member
I believe the end of fy report in march had 900k shipped to eu with around 450k as sold. I'll go see if i ca find it.
Sorry to digress but wow you hadn't posted in quite a long time!
Yeah I thought this was interesting too. They do note that sales and COGS were affected by yen depreciation, decreased hardware proportion of sales and 3DS margin increases (would love to see how much is impact of 3DS XL vs. lower production costs).
What you think about the progress depends on how you define progress. Really the trick for Nintendo has never been returning to operating profitability per se. Its returning there whilst salvaging the Wii U and lifting the 3DS higher (both of which Nintendo forecasts it will do this year), which are very important long term priorities for the company.
Apophis2036
Banned
I'm sorry I hurt your feelings :/.
StreetsAhead
Member
It has nothing to do with feelings. It's just a joke that wasn't particularly funny in the first place that people continue to use well past its 'fifteen minutes'. It adds nothing to the conversation and isn't particularly clever.
shinra-bansho
Member
In thousands. Shipped is to all Other territories, while Est. Sold is European.
Code:
Shipped Est. Sold
Dec-12 900 425*
Mar-13 110 122*
Jun-13 10 52**
[B] 1020 599[/B]** Extrapolation of reported sell-through data by Aquamarine.
I think this is a reasonable estimate.