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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
w1gglyjones
Member
It's actually just accounting gains. Money that they earned in dollars and kept in dollars is constantly being reevaluated in Yen according to the exchange rate. This affects the book value of these assets.
An operating loss is still an operating loss, but revaluing their assets derived from previous sales is like retroactively posting operating profits from previous quarters.
But yes, the past few quarters have all seen operating losses.
StreetsAhead
Member
How much did the original LM do?
AHA-Lambda
Member
Wow, in a way that's impressive how bad that is.
god DAMN those are some sexy numbers
Magicpaint
Member
On the plus side, software is up a bit (as to be expected, though).
But that WiiU shipment number is truly pathetic.
Where's Chris1964? I think I'm winning this one
Man I'm dumb. I'm looking at numbers like I'm dyslexic, I think it is time for me to go to bed.
Right. I understand that (explained it to someone else in a previous thread even). I think thats implied when you say its exchange rate gains (on book value).
It was very good for 3DS software sales wise, positive momentum. But software sales since launch have been really slack for the 3DS in general so theres still work to do bringing up the attach rate of the system. It'll be interesting if they hit their goal for this year.
Damn, no wonder they want to localize Tomodachi Collection in North America.
Black Republican
Member
Price cut this week?
michaelius
Banned
notsureifserious.jpg
Guess they prefer to do one massive 60% adjustment and not drop wii U predictions each quarter
Shrike_Priest
Member
I tried looking up operating income vs net income and I'm not exactly sure I got it right.
Is this somewhat correct:
Net Income is the balance when you include their entire cash-flow, this includes loans, investments, exchange rate gains etc. So say that they either cash in on some loan payments, or suddenly their possessions in a foreign currency is appreciated, then that'd raise their net income regardless of what their "day to day" business is doing?
Operating Profit/Loss is what they made on their actual business (ie. selling hardware and software)?
StreetsAhead
Member
To put it in perspective a little, the Wii sold 210,000.
We knew that Wii U new shipments were low, considering that they weren't unable to sold all the initial ones. There was no cut price, no promotion and no significant software release, even first party (Pikmin is July, Wario isn't significant and was end of June). They were somehow hiding the console waiting for a (possible, not probable imho) relaunch with the new releases. Despite that, software numbers aren't that bad at all, considering the hw situations, for example.
Wii hits the milestone of 100 millions, absolutetly the best console Nintendo ever made in terms of sales success (home side, of course). And aside the dead DS that is now out of track.
3DS is simply a very solid machine up to now, and AC sales will impact positevly its numbers now on, 'til Pokemon (ww) and MH (Japan wise).
Good to see the company not being doomed despite the great issues they are facing with the Wii U, overall.
Wii hits the milestone of 100 millions, absolutetly the best console Nintendo ever made in terms of sales success (home side, of course). And aside the dead DS that is now out of track.
3DS is simply a very solid machine up to now, and AC sales will impact positevly its numbers now on, 'til Pokemon (ww) and MH (Japan wise).
Good to see the company not being doomed despite the great issues they are facing with the Wii U, overall.
Zombie James
Banned
Can someone educate me on how year-long projections are made? I'm seeing 0.16M for the Wii U in three months but Nintendo is projecting they'll end up selling 8.84M more in the next nine? Even given a holiday bump that doesn't seem likely to me... but I don't really follow this side of the industry very much.
SolarPowered
Member
So what was the Wii U's launch allocation again? It definitely hasn't sold through it's launch batch, but I can't remember it if was 4 or 4.5 million.
They'll be lucky to break 9 million come June next year.
They'll be lucky to break 9 million come June next year.
2.19 million in America.
You're reading that correctly, and their prediction is exactly as crazy as it sounds.
Nintendo has a perennial habit of missing projections these days, often badly.
AlphaStriker
Member
Well both Target and Best Buy are having a free $50 gift card with purchase of Wii U Deluxe next week.
Console doesn't sell in period where no games came out. Shocking
Seriously though, I really hope they can pull out from this. I'm surprised they didn't announce anything to help spur sales with this
Operating loss is severely reduced. Nintendo still turned an overall profit. It could be worse for them, but they NEED to do something
Seriously though, I really hope they can pull out from this. I'm surprised they didn't announce anything to help spur sales with this
Operating loss is severely reduced. Nintendo still turned an overall profit. It could be worse for them, but they NEED to do something
metalslimer
Member
Too bad that hardware forecast is nigh near impossible to reach after a quarter this bad
zomgbbqftw
Banned
Non-operating income - 20,269, of which FX gains - 16,934.
Hardly the most sustainable recovery for Nintendo's bottom line.
I also don't understand how their forecasts haven't changed either for profit or hardware shipments. Iwata has his head buried firmly in the sand.
Massive overshipment in Q4 2012, a lot of retailers are still working through that let alone the shipment from the last quarter. Nintendo have basically just righted their shipments this Q, probably because retailers and distributors went on strike and decided to stop buying Nintendo hardware until they depleted their stock levels to a lower level.
Hardly the most sustainable recovery for Nintendo's bottom line.
I also don't understand how their forecasts haven't changed either for profit or hardware shipments. Iwata has his head buried firmly in the sand.
Massive overshipment in Q4 2012, a lot of retailers are still working through that let alone the shipment from the last quarter. Nintendo have basically just righted their shipments this Q, probably because retailers and distributors went on strike and decided to stop buying Nintendo hardware until they depleted their stock levels to a lower level.
ohblahitsme
Member
Hang on, 1.19M Animal Crossing sales overseas? That's amazing! That's 1.19M in a little more than 3 weeks!
Zombie James
Banned
Averaging a million a month sounds completely nuts to me in it's current state.
Muchi Muchi Pink
Member
Yep. Nintendos handhelds are still strong.
metalslimer
Member
On the plus side Iwata doubliung down on his crazy pills will hopefully send him packing at the end of the FY
hahahahaha
It really just depends on how much momentum they can get going into the holiday season. Holidays tend to be a magical sales time for Nintendo. They just need to get a fire lit under the consumers behind though. If the next quarter doesn't show some significant changes you can expect them to change the numbers.
They are hoping the next quarter gets the fire going that will get them a 4-5 million unit holiday. They really need a massive change in attitude and to start grabbing consumers by the balls to notice
Pretty sure you've got it right. They're either being really stubborn or they've either got a killer app we don't know about yet.
shinra-bansho
Member
Currency gains. They're still running at an operating loss.
Wii U shipments are atrocious.
Well, selling the unsold stock right now helps for selling big amount of stock later this year, I suppose.
P.S. Iwata reiterates that 3DS is gaining momentum in US and Europe and (after all?) they want to help distributing key Japanese titles overseas.
zomgbbqftw
Banned
Fixed.
Wii U is pretty much dead in all markets until holidays and 3DS is doing incredible in Japan. The problem is that it's only doing alright in North America and Europe. Typically North America is the biggest market (and their handhelds sell better there compared to even Japan) and yet Japan's 3DS sales double the North American sales. It's really pathetic. NoA is fucking up so hard it seems.
2.6 million worldwide.
At this rate, 3 million is a piece of cake for Dark Moon.
Hopefully those sales will secure a third sequel
I think with the rumored Pokémon hardware bundles, they will not miss it by a ton, but yeah they will most likely miss their forecasts.
SolarPowered
Member
There is magic and then there is this. Doctor Fate and Doctor Strange would have heart attacks trying to figure out a spell to conjure that many sales this holiday.
Wow, just wow. If retailers order that few units in Europe they haven't even sold through half of the initial launch shipments. Nothing will save the Wii U now, not even Nintendo games. It's just 150 too extensive. People don't want to pay for some expensive gimmick, the hardware itself sets the price. Just like with X1, all everyone sees is it's 100 more than PS4 with weaker specs.
Black Republican
Member
Oh wow. Canada or us?
StreetsAhead
Member
Right you are. With 4 first party titles in Japan, and 3 in the rest of the world this quarter, if there's not a decent improvement it's time to start digging 6 feet down. If you can't beat launching Game & Wario in EU/NA's numbers with Pikmin, TW101, and WWHD across NA/JP/EU then you're done.
MasterSheen
Member
That's a major understatement.
Nintendo should be happy with software increases on 3ds, but really disappointed that hardware went down year over year for Q1.
Also, interesting that the supplementary info page still lists Mario Golf as coming this summer, even though Iwata said that was pushed back to next year. Whoops.
Also, interesting that the supplementary info page still lists Mario Golf as coming this summer, even though Iwata said that was pushed back to next year. Whoops.
Why don't you read what I said instead of trying to troll.Nintendo hopes they can get momentum going that could lead to that. Its very obvious the odds of such momentum are near non existent.
Its obvious how this discussion is going to go though. The other thread will hit 50 pages before this one hits 5. Another fine example of Neogaf
nhlducks35
Member
5 billion Yen operating loss and 8.6 billion yen net income. Not looking good for Nintendo as of now...
michaelius
Banned
Funny thing is the next quarter will maybe put them at 0.5 milions shipped for a year so they need 6-7 milions units holidays.
So, do these amazing LM numbers means the chances of Next Level Games being allowed to do LM3 and a Wario/Waluigi team-up adventure game went substantially up now?
zomgbbqftw
Banned
On the FX gains. Smarter Japanese companies have kept them off the books to ensure that they don't post a net profit before tax and end up paying tax on it. From what I remember being told, Japanese companies only have to declare on their income statement FX reserves that they intend to repatriate and income tax must be paid on it.
Nintendo are unnecessarily paying tax on their dollar/euro reserves just so they can show a headline profit and so Iwata can feel better about himself.
Nintendo are unnecessarily paying tax on their dollar/euro reserves just so they can show a headline profit and so Iwata can feel better about himself.
metalslimer
Member
Oh come on, they still are operating at a loss and the only reason they profited was currency gains. Nintendo is in terrible shape and this topic is not more posiyive for them.