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Nintendo Announces First Half FY 2011 Financial Results [Expects Full Year Loss]
- Thread starter Parmenides
- Start date
CoffeeJanitor
Member
What did he do? Too much Nintendo defense?JimWood27 said:
Hobbestetrician
Member
Probably. Apparently there is some watch list for known fanboys and if they start to get too out of hand the mods give them a break.CoffeeJanitor said:
Quick question.
Would it be a bad idea on NCL's part to allow NoA and NoE to be a bit more "freedom" in their respective regions? Like, allow them a bit more leeway in looking after the handhelds/consoles and software in Europe/US or be given the chance to recruit devs, expand and whatnot on their own without the ever watchful eye of NCL...?
Or would that make for poor business sense?
Would it be a bad idea on NCL's part to allow NoA and NoE to be a bit more "freedom" in their respective regions? Like, allow them a bit more leeway in looking after the handhelds/consoles and software in Europe/US or be given the chance to recruit devs, expand and whatnot on their own without the ever watchful eye of NCL...?
Or would that make for poor business sense?
CoffeeJanitor
Member
Good. He is a little too over the top imo, so it's good they keep them in line.JimWood27 said:
Anyways, as is always true, desperate Nintendo is best Nintendo.
bigtroyjon
Member
Truth101 said:
How many years did Nintendo lose money while the Game Cube was selling?
Things are slightly more complicated then just the number of units of hardware they are able to sell.
bigtroyjon said:
The Game Cube was also sold at a small loss in the begging of its lifetime. Production costs for the 3DS should start scaling downwards as the factories are more active, producing more units, because more are being sold. So, the 3DS system itself should begin to be profitable sometime next year.
While the slow start of the 3DS might have hurt Nintendo a bit, it would be a drop in the bucket compared to how much they are loosing due to exchange rates. The 3DS is also in a transition stage right now replacing the old with the new.
By this time next year Nintendo will be back to posting profits, as they seem to be sinking most of their losses this year. they will also have the Wii U on the market by this time next year, and with how the Wii has been selling, software wise, the transition will probably be much shorter than that of the 3DS.
Though these are just the opinions of someone who just dabbles in Sales-Age threads, so by all means take everything I say with a grain of salt.
bigtroyjon
Member
Truth101 said:
They had a 57 billion yen operating loss and had 52 billion in foreign exchange losses. Exchange rates have hurt them but the big drop in revenue is just as much of a reason for their losses.
DiscoJer
Member
I don't think people here realize the magnitude of the effect that the exchange rates have.
The dollar is at an all time low compared to the yen right now. 1 Dollar = 75 yen basically. Normally it's more like 1 Dollar = 100 yen.
Virtually all of Nintendo (that matters) is based on Japan - so when they make games and such, they have to pay out money in yen. So it hurts them a lot more than say Sony, which while also Japanese, seemingly has the bulk of its developers in NA (and Europe).
Though I do think Sony is going to be hurt somewhat by the rate when it comes to the Vita. Granted, a lot of it is made in China, who pegs their currency to the dollar, so it should even out on manufacturing (though the price of raw materials goes up as the dollar loses strength)
The dollar is at an all time low compared to the yen right now. 1 Dollar = 75 yen basically. Normally it's more like 1 Dollar = 100 yen.
Virtually all of Nintendo (that matters) is based on Japan - so when they make games and such, they have to pay out money in yen. So it hurts them a lot more than say Sony, which while also Japanese, seemingly has the bulk of its developers in NA (and Europe).
Though I do think Sony is going to be hurt somewhat by the rate when it comes to the Vita. Granted, a lot of it is made in China, who pegs their currency to the dollar, so it should even out on manufacturing (though the price of raw materials goes up as the dollar loses strength)
TheUnknownForce
Member
bigtroyjon said:
Also note that since the price drop, each 3DS meant more loss for Nintendo due to costs.
When the GameCube was doing poorly, the GBA was doing its thing. This is a moment when neither console nor handheld are making a big enough profit for the transition stage to be in the black...for now.
PdotMichael
Banned
Shanadeus said:
because it's legal and possible
and a smartphone entry is maybe not the dream of a nintendofanboy but if Nintendo can't make a profit with hardware anymore, it's better to change the business strategy
PdotMichael
Banned
Brazil said:
false balance sheets is legal?
Actually, Sony lost money (full FY) during the release of the PS1, the release of the PS2 and the release of the PS3. MS lost money during the release of the Xbox and the release of the 360. I guess it's not a "generational transition" the first time so you can call it hardware launches instead if you want, but there's definitely a trend there.jcm said:
Edit:
Uh, I said precisely that this is unusual for Nintendo. The original plan was obviously to make a profit selling the 3DS for $250, but when that didn't work they were uncharacteristically aggressive in devising a plan B.jcm said:
Slightly off topic but I thought this was relationship-worthy considering the massive jump and hiccup the Yen made earlier yesterday.
http://www.bloomberg.com/news/2011-...-yen-loss-on-strong-yen-falling-tv-sales.html
http://www.bloomberg.com/news/2011-...-yen-loss-on-strong-yen-falling-tv-sales.html
There are still debates raging on both sides of the coin. Their finance minister is supposedly going to get tough on the Yen within the next couple of weeks so who really knows. The corporate hierarchy want it to hit 85-90 per USD so we'll see what happens.
The real issue is the USD flailing like a stone in cement at the moment. Still a lot of tough times ahead for Japanese transnational companies. Hopefully they can weather through the storm.
The real issue is the USD flailing like a stone in cement at the moment. Still a lot of tough times ahead for Japanese transnational companies. Hopefully they can weather through the storm.
Empyrean Heaven
Member
And as expected, the "Nintendo might very well be doomed" talk has reached an all-time high. And well, it's scaring the crap out of me, because THERE IS NO GREY AREA. And I don't think my emotional well-being could take Nintendo going third party. I'd cry. I'm being deathly serious. I'd bawl my eyes out.
Can anyone here alleviate my fears? I just want hard evidence, because every other site I've seen has plenty of evidence as to why my fears are going to become very, VERY real.
Can anyone here alleviate my fears? I just want hard evidence, because every other site I've seen has plenty of evidence as to why my fears are going to become very, VERY real.
GodDuckman said:
Iwata in the Q&A for 1st quarter fiscal results said:
Basically, Nintendo could afford to go into a loss this year due to the cash reserves they built up (even more than they were already) during the DS/Wii years. There are more recent quotes from Iwata in the Q&A for the recent fiscal results where he explicitly says they are choosing promoting the 3DS over profitability this year.
They'd have to go years incurring huge losses before they were even close to being doomed.