Nintendo Announces Q1 Results - Cuts Profit Forecast 82%

May 9, 2006
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#1
-Nintendo Co.,the world's largest maker of handheld video-game players,today announced its financial results for the fiscal year ended March 31,2011.

-Nintendo posted an operating loss of ¥37,712 million

-The company reported a net loss of ¥25,516 million


NDS Worldwide Hardware Unit Sales (Unit:Million)
Code:
                Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2004/05        -        -      2.84     2.42      5.26     5.26

FY 2005/06      1.29     2.19     5.69     2.29      11.46    16.72

FY 2006/07      4.54     5.55     8.79     4.67      23.55    40.27

FY 2007/08      7.00     6.37     11.14    5.81      30.32    70.59   

FY 2008/09      6.96     6.78     11.89    5.56      31.19    101.78

FY 2009/10      5.97     5.73     11.65    3.76      27.11    128.89

FY 2010/11      3.15     3.54     9.01     1.82      17.52    146.42

FY 2011/12      1.44      -        -        -        1.44     147.86
NDS Worldwide Software Unit Sales (Unit:Million)
Code:
                Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY       LTD

FY 2004/05        -        -      5.01     5.48      10.49    10.49

FY 2005/06      5.33     7.98     22.59    14.05     49.95    60.44

FY 2006/07      18.35    24.79    50.65    29.75     123.54   183.98

FY 2007/08      34.26    41.23    71.39    38.75     185.63   369.61   

FY 2008/09      36.58    48.43    78.77    33.53     197.31   566.92

FY 2009/10      29.09    42.06    50.22    30.22     151.59   718.5

FY 2010/11      22.42    32.42    44.15    21.99     120.98   839.48

FY 2011/12      12.13     -        -        -        12.13    851.62
Wii Worldwide Hardware Unit Sales (Unit:Million)
Code:
                Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2006/07        -        -      3.08     2.76      5.84     5.84

FY 2007/08      3.43     3.9      6.98     4.31      18.62    24.46   

FY 2008/09      5.17     4.92     10.42    5.43      25.94    50.4

FY 2009/10      2.23     3.53     11.29    3.48      20.53    70.93

FY 2010/11      3.04     1.93     8.75     1.36      15.08    86.01

FY 2011/12      1.56      -        -        -        1.56     87.57
Wii Worldwide Software Unit Sales (Unit:Million)
Code:
                 Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr     FY       LTD 

FY 2006/07        -        -       16.37    12.46    28.83    28.83

FY 2007/08       15.98    21.0     47.38    35.25    119.61   148.44  

FY 2008/09       40.4     41.0     82.39    40.79    204.58   353.02

FY 2009/10       31.07    45.14    80.43    35.17    191.81   544.83 

FY 2010/11       28.17    37.04    85.33    20.72    171.26   716.09

FY 2011/12       13.44      -        -        -      13.44    729.53
3DS Worldwide Unit Sales (Unit:Million)
Code:
Hardware Sales   Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr     FY      LTD

FY 2010/11         -        -       -       3.61      3.61    3.61

FY 2011/12       0.71       -       -         -       0.71    4.32       


Software Sales   Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr     FY      LTD

FY 2010/11         -        -       -       9.43      9.43    9.43

FY 2011/12       4.53       -       -         -       4.53    13.96
FY 2011/12 Forecasts (Unit:Million)
Code:
                    NDS         Wii        3DS

Hardware Sales      9.0        12.0       16.0

Software Sales      65.0       110.0      70.0

Previous Forecasts
Code:
                    NDS         Wii        3DS

Hardware Sales      11.0        13.0       16.0

Software Sales      67.0        120.0      62.0

LINK: NINTENDO

Nintendo 3DS price drops to 15k yen
 
#8
Obligatory "Nintendo going third party post"
Obligatory "Doom and Gloom post"

but yeah, i had the 3ds doing gangbusters, but ultimately I think the biggest barrier for entry is the 3d itself. You really have to see it yourself to understand it. Marketing mario kart 3d on a 2d television screen is just bollocks.

edit: and was pointed out ^ - yen fluctuations continue to hamper all of japan's industry. Feel bad for them myself, but at least their soccer team won, so thats something :S
 
May 12, 2010
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#10
Onion_Relish said:
Obligatory "Nintendo going third party post"
Obligatory "Doom and Gloom post"

but yeah, i had the 3ds doing gangbusters, but ultimately I think the biggest barrier for entry is the 3d itself. You really have to see it yourself to understand it. Marketing mario kart 3d on a 2d television screen is just bollocks.
Interestingly enough they are holding to their sales forecast for the 3DS. So they must feel confident the price cut and fall lineup is gonna accelerate sales very fast
 
Oct 17, 2005
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#11
Onion_Relish said:
Obligatory "Nintendo going third party post"
Obligatory "Doom and Gloom post"

but yeah, i had the 3ds doing gangbusters, but ultimately I think the biggest barrier for entry is the 3d itself. You really have to see it yourself to understand it. Marketing mario kart 3d on a 2d television screen is just bollocks.

you're forgetting the absurdly high price
lack of software
lack of appeal of 3d
 

subversus

I've done nothing with my life except eat and fap
Oct 26, 2009
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#12
Nintendo is doomed, amirite?

anyway portables don't sell too good, WiiU will be outperformed by next-gen consoles, no casual hook this time.

Nintendo is DOOMED!!
 
#14
outunderthestars said:
you're forgetting the absurdly high price
lack of software
lack of appeal of 3d
I don't think the price is that high and I would love to see some evidence of the lack of appeal of 3d given just how much it has wormed its way into popular media, films, games etc. Really the key is the lack of software. Even when you have a good game in a genre (ie: legend of zelda) you only have 1 good game in that genre. There is literally only one good fighting game for the 3ds, and the same can be said of a lot of genres on the 3ds for that matter.

I guess the reason why they think they will meet their numbers is that their legacy franchises will bring home the bacon, and they have in the past so it's hard to see why they wont in the future, but still, things are a bit dicey as of right now
 
Oct 15, 2005
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#15
Nintendo needs to make a new handheld and blow off the 3ds as the last version of the ds revisions. They also need to kill the wiiU as it's a rushed unfocused mess and try again.


Every now and then nintendo gets lucky and strikes lighting but they still haven't figured out how to ride it.
 

Nix

Banned
Mar 2, 2011
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#17
This is what happens when NOA basically act like jerks for the whole of 2010-2012. You lose an entire geographic region. Good job Nintendo Ninja's, good job.
 
Oct 6, 2006
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#18
Onion_Relish said:
but yeah, i had the 3ds doing gangbusters, but ultimately I think the biggest barrier for entry is the 3d itself. You really have to see it yourself to understand it. Marketing mario kart 3d on a 2d television screen is just bollocks.
Seeing it in real life killed my enthusiasm for the system, as I discovered that I can't stand the 3D effect.
 
Jun 28, 2006
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#20
Yeah, I know they'll be fine in the long run, but I really don't feel bad for Nintendo, especially NoA.

Try treating your customers better, release some freaking games and stop trying to live on hype and your brand name alone.
 
Sep 25, 2006
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#21
big_z said:
Nintendo needs to make a new handheld and blow off the 3ds as the last version of the ds revisions. They also need to kill the wiiU as it's a rushed unfocused mess and try again.


Every now and then nintendo gets lucky and strikes lighting but they still haven't figured out how to ride it.
What's with the jump to conclusions RE WiiU?

It's not out for another year. How on earth could you possibly already garner that it's an "unfocused mess" given the extremely small number of details we actually have on the system.
 
Aug 19, 2010
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dreammodule.com
#22
I remember a few years ago, where the wii was selling like crazy, on track to beating the PS2. it only sold 0.16m more this quater.

everybody seems down from last year.


3ds break down so far
1.27 million Japan
1.43 million americas
1.63 million other
I remember a few days ago, someone saying japan's sales are not relevant anymore. They love their handhelds.
 

Corran Horn

May the Schwartz be with you
Sep 9, 2007
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Sacramento, CA
#26
big_z said:
Nintendo needs to make a new handheld and blow off the 3ds as the last version of the ds revisions. They also need to kill the wiiU as it's a rushed unfocused mess and try again.


Every now and then nintendo gets lucky and strikes lighting but they still haven't figured out how to ride it.
Return of the gameboy? :)
 
Aug 21, 2008
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#30
Tricky I Shadow said:
Good to see Nintendo sales going down. They don’t deserve to be doing well.
Durp de durp de dum de dum.

What company deserves to be doing well? Activision?

And damn, 700k 3ds world wide last quarter >.<
 
Aug 21, 2008
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#34
The Broken Ska Record said:
Hopefully the price drop will create a spike in game sales and thus new games for the system...

...probably not. :(
Every system starts pretty slow. I remember not having much for my ps2 for ages >.<
 
Jun 15, 2011
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#35
It's not unexpected. Especially in America they seem to have a hard time releasing games this year for any system that's not now officially last gen. I get the idea to let third parties take control with the 3DS, but the lack of Wii content (even when they could have easily given it some!) was pretty disturbing.
 
Jun 19, 2007
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#36
From Nintendo:

In addition to such circumstances, the yen was much stronger against the U.S. dollar compared to the three months ended June 30, 2010, and in view of the impact of absorbing the inventory markdown taken into account in connection with the price reduction of the "Nintendo 3DS" hardware to be made during this September quarter in Japan, the U.S., Europe and Australia, net sales were 93.9 billion yen (of which overseas sales were 77.0 billion yen, or 82.0% of total sales). Furthermore, Nintendo made advertisement and promotional efforts to strongly spread the "Nintendo 3DS," which was released in February 2011 in Japan and in March in the U.S and Europe, throughout the market. There were also expenses for research and development for new products like "Wii U," which will be released in 2012. These factors considerably decreased profits, thus the operating loss was 37.7 billion yen, ordinary loss was 42.5 billion yen, and net loss was 25.5 billion yen.
So Nintendo is taking the hit for 3DS price drop Q1?

Am I reading this correctly?

And can someone explain to me the difference between operating loss, ordinary loss and net loss?
 
Jun 10, 2008
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#37
big_z said:
Nintendo needs to make a new handheld and blow off the 3ds as the last version of the ds revisions. They also need to kill the wiiU as it's a rushed unfocused mess and try again.


Every now and then nintendo gets lucky and strikes lighting but they still haven't figured out how to ride it.
lol no. Wii U isn't rushed because it's not even out for another year.

And there's no way Nintendo could sweep 3DS under the rug like that lol. It's still a decent handheld. they just need A) games and B) a sold price. Both of which they will have by the end of the year.
 
Dec 14, 2008
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#38
Oh, Nintendo.

Not unexpected, they need to inject some excitement back into their systems. My Wii and DS remain unused, and a 3DS is on hold until Mario Kart drops. They just lost that spark they had during the early years of the Wii where they were hitting home run after home run with new experiences. They raised the bar and they themselves have to continue meeting that bar.

Iwata seems incredibly self-aware though (unlike whoever is in charge of RIM, which is likely headed to oblivion), so they likely will improve again.
 
Sep 30, 2008
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#44
dvolovets said:
So that's a 3.23 attach rate for the 3DS... is that considered good at this point? I feel like it should be higher, considering the PSP-like audience that's currently the main market for the system...
Its perfectly fine for a system that has been out less than 6 months. Attach rate grows with system sales/time and this system just hasn't been out long enough for it to have a super high attach rate.
 
Apr 30, 2006
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#47
onipex said:
Lack of major software from Nintendo to keep their systems going, software sales up, profits better.
Obviously they had to refund retailers for 3DS drop. But over $300M loss is big. And now 3DS margings are very much lower. Wii is stalling even with drop. Future is full of uncertainy i expect Nintendo stock to stumble
 
Dec 11, 2008
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#48
_Alkaline_ said:
Do your posts ever have any kind of substance other than one word/sentence quips that try to be provocative but fail miserably?
How anyone can say with a straight face that Nintendo deserves to be doing well at the moment is seriously beyond me. They don't deserve to be doing well...here's your substance:

The abysmal state the Wii is in, Nintendo rejecting games on the Wii and the 3DS's launch and price. Yeah, Nintendo sure deserve to be smashing the competition at the moment! -_-
 
Jun 7, 2010
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www.carpefulgur.com
#50
Just as a note: the Yen situation seriously is not helping.

http://finance.yahoo.com/q/bc?s=USDJPY=X&t=5d&l=on&z=m&q=l&c=

The yen's diving below 78 to the dollar. It could hit 75 or even lower.

That's basically the fuckmothering apocalypse for anyone who does significant business overseas. Most business and prices are built around an assumption of the yen staying at roughly 100 to the dollar - basically, one yen is one cent. Below 80 yen to the dollar is absolutely abysmal. It's like losing twenty cents for every dollar you make, and losing it to NOTHING.

I'm actually a little scared for my business, as if the yen dips near 70 for any stretch of time I'm either going to have to raise prices on my games or just shutter the business. Even at the insane volumes Carpe Fulgur has been posting so far, it almost wouldn't be worth it for our Japanese partners. It's that bad.

So yeah, even with the low sales I think Nintendo could have eked out a profit this quarter if the yen wasn't still absolutely in the shitter. The Japanese government needs to get on top of this mess or it is going to destroy the Japanese economy wholesale.

Nintendo still learned a goddamned lesson about $250 handhelds, though. The real question is whether or not Sony will pick up on it.