Nintendo Announces Q1 Results - Cuts Profit Forecast 82%

May 11, 2011
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#53
Abysmal software sales.

I guess it's true what they say about people who buy Wii's and their unwillingness to buy new software. Also, Nintendo is to blame to some degree for this.
 
Oct 6, 2006
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#56
SpaceDrake said:
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.
Economics isn't quite that simple. Currency valuation has all sorts of effects, yes strong currencies do damage exports, but they are a reflection of underlying economic realities, even if maintained low by fiat (a la China) there is a cost (buying up US$ holdings).
 
Jun 9, 2004
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#57
Paracelsus said:
No because the example is fitting, sort of a "never forget".
That doesn't change the fact that we have a new money eater in the neighbourhood. And it's hungry.

Hopefully someone will be up to the task.
 
Feb 17, 2009
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#58
SpaceDrake said:
Nintendo still learned a goddamned lesson about $250 handhelds, though. The real question is whether or not Sony will pick up on it.
The tech behind the PSV will probably let it weather the storm much better as long as the games are there.

I liken it to the situation the Wii is facing while the PS3 and 360 continue to build momentum.
Acosta said:


We need an updated version of this I think.
Nah, that one is iconic. $599 for a console is far worse than $250 for a handheld and everyone knows it now.
 
Jun 24, 2007
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#59
SolarPowered said:
The tech behind the PSV will probably let it weather the storm much better as long as the games are there.

I liken it to the situation the Wii is facing while the PS3 and 360 continue to build momentum.
If DS could make it with N64-looking games up to 2011 even outselling 3DS itself on a monthly basis, I don't know what the good old value can do for PSV, unless they really start marketing software, something Sony has never really been able to.
 
Aug 14, 2006
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#60
From the PDF, it seems like the loss was largely due to the strong Yen, the high R&D costs associated with the Wii U and the 3DS pricedrop (some costs have already been brought forward into this quarter it seems)

Still, that's a huge margin to suddenly just chop off!
 
Jun 9, 2004
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#62
SolarPowered said:
The tech behind the PSV will probably let it weather the storm much better as long as the games are there.

I liken it to the situation the Wii is facing while the PS3 and 360 continue to build momentum.

Nah, that one is iconic. $599 for a console is far worse than $250 for a handheld and everyone knows it now.
I would say the biggest misstep of Nintendo since the Virtua Boy it´s quite iconic too.
 
Feb 17, 2009
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Paracelsus said:
If DS could make it with N64-looking games up to 2011 even outselling 3DS itself on a monthly basis, I don't know what the good old value can do for PSV, unless they really start marketing software, something Sony has never really been able to.
Hey, we just witnessed the stumbling of a giant. Anything can happen at this point. :p
Acosta said:
I would say the biggest misstep of Nintendo since the Virtua Boy it´s quite iconic too.
We've still got the WiiU launch to watch. I feel much worse about that one than the 3DS, really. That is, unless Nintendo actually learned something from overpricing their products...
 
Jun 7, 2004
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#66
Got to admit, extremely shocked at Nintendo losing money. This must be a first in years? Wii took a gamble with its hardware, they effectively capped the consoles future potential to compete. MS is reaping the benefits 6 years in because of graceful degradation.

Hope the WiiU is significantly more powerful from what we've seen so far.
 
Jun 9, 2004
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#67
I think Nintendo had another negative quarter back in GC times but I'm not sure. Better wait for Chris or someone informed about that stuff to check it out.
 
Nov 10, 2006
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#68
wow, I thought Sony Q1 was bad, but this is really not expected.
I mean, Nintendo posted loss of over 320 million $ in a single quarter - doubt anyone expected that. Sony's 191M$ loss seems moderate now. :p

It seems to be a hard time for Japanese companies in general. Hopefully the economy recovers a bit leading into the holiday season.
 
Sep 18, 2009
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#69
Acosta said:
I think Nintendo had another negative quarter back in GC times but I'm not sure. Better wait for Chris or someone informed about that stuff to check it out.
Last year they had another quarter in red because of the Greek Crisis.
 

Chuck

Still without luck
Feb 19, 2011
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#71
Maybe they should start catering to the people that want to give them money instead of those who don't.

And then they shouldn't try to rip off the people who do.
 
Dec 5, 2008
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#73
For when it comes up. Was the negative quarter related to the Gamecube when they had to stop production of the system for several months?

Otherwise, yeiks at the Yen situation I never noticed it was the Dollar nosediving and the Euro maintaining (for now anyway) its drop in the last 12 months as I assumed both would get hit equally as bad.

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...
Not so fast. I think these sold figures are sold as in on a shelf of some retailer i.e. shipped. From glimpses of known sales you start to realise that attach rate seems impossible. I'm pretty bad at sales age but when in the UK OOT 3Ds launch weekend is essentially the best selling 3DS game at the time in the UK LTD wise with an attach rate of 0.2 you start to wonder what on earth is going on. I think Media Create figures back in the launch week showed around the 0.3 mark for attach rate. But I could be mistaken on this.
 
Jun 7, 2004
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#74
you know, i think the ps2 is going to remain the best-selling system of all-time. sony would have to absolutely kill it right now for the ds to even catch up, and that wouldn't happen until sometime in mid-late 2012.
 
Aug 14, 2006
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#80
weeaboo said:
Holy crap, Nintendo really is doomed.
That's thanks to the 3DS price drop. They've lost almost all of their margin on the hardware now, so of course their profit forecast will also drop massively.


Elios83 said:
Which probably means that the price cut was decided around E3 after looking at the launch performance and competition moves, and it will have a huge impact on profits. It was not something they expected to do.
We already knew that. Iwata said as much after the E3 conference.

Still, I do think that this price drop is a huge mistake (at least of this magnitude). It's a completely unneccesary knee jerk reaction.
 
Mar 7, 2007
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#81
cvxfreak said:
The strong Yen... good for my salary, bad for anyone in Japan who does overseas business.

I suppose Nintendo could try increasing its sales in Switzerland to take advantage of the even stronger Swiss Franc. :p
LOL. This stupid Euro is killing our exportations though. Most companies are increasing the time of work during a week from an average of 40 to 42-43. Good thing we have a unemployment at 2.8% now.

Anyway, back to Nintendo, I really thing they deserve that, because they got lazy in last years. I started to see the tide change when Monster Hunter was selling like Hotcakes in Japan and Nintendo was too blind to see a shift. Kinect made the rest in western coutnries. Sure, it was slow, but if I was able to see thats shift, everyone should have as well!

I hope that right now they feel the fire under their asses, so that they start being more productive.
 
Sep 23, 2009
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#83
Nirolak said:
Source: http://www.gamesindustry.biz/articl...cuts-full-year-profit-forecasts-by-82-percent

Huh, they must be selling the 3DS somewhat near cost now.
Lol. Not even close.

Dedication Through Light said:
They want to get up to 16 mln units this year, that just seems huge, can 3DS really sell mlns each month this holiday?!
It will have to sell an average of 2 millions units a month worldwide which if holiday sales are good could end up happening.
 
May 19, 2005
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#85
AniHawk said:
you know, i think the ps2 is going to remain the best-selling system of all-time. sony would have to absolutely kill it right now for the ds to even catch up, and that wouldn't happen until sometime in mid-late 2012.
It's funny because the DS has outsold the PS2 in all the three major regions. So you have to think the PS2 overcomes that deficit from other minor regions.
 
Jun 30, 2004
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#86
Nuclear Muffin said:
We already knew that. Iwata said as much after the E3 conference.

Still, I do think that this price drop is a huge mistake (at least of this magnitude). It's a completely unneccesary knee jerk reaction.

Didn't know that Iwata officially commented about it.
But no I don't think it's a mistake at all, although it's bad for early adopters.
Not cutting the price this year would have killed the product. The only other option was to wait until the October quarter but I think their reasoning is that they don't want the product to lose further mindshare and take actions just when the competition arrives.
 
Oct 13, 2006
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#87
Humble pie. : )

Hopefully they wake up and put more effort behind console longevity (power) and 3rd party support (software) for Wii U.
 

Iadien

Guarantee I'm going to screw up this post? Yeah.
Oct 29, 2006
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#89
The 3DS still doesn't have any games I want, so they can lower the price as much as they want, I'm still not buying it.
 

DECK'ARD

The Amiga Brotherhood
Jun 11, 2004
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#90
Interesting times.

I think the 3DS price-drop is the right move though, very aggressive and backed by Mario+Mario Kart for Christmas that could go crazy.

I hope so, because I really like the system and I hope it gets the install base for publishers to allocated resources to it. It could really be home to a lot of quirky, less mainstream titles. Don't want the Megaman Legends situation to be repeated.
 
Jun 24, 2007
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#93
MrBelmontvedere said:
both 3DS and PS Vita are fucked. everyone has a cell phone now that plays games. really devalues your product.
I wouldn't play Tales of Portablia on Iphone even if the alternative was death, so I hope there's still a strong software support for both platforms.
 

DECK'ARD

The Amiga Brotherhood
Jun 11, 2004
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#95
DMPrince said:
good luck nintendo with WiiU.
Yeah, much less sure about that.

My worry is it's going to be Nintendo's halfway house console. Not enough to pull people away from PS3/360, and not as immediate as the Wii's concept to make it appealing to everyone else as a social multiplayer console.

Hope they make a much more compelling argument for the console at TGS/October time.
 

Rebel Leader

THE POWER OF BUTTERSCOTCH BOTTOMS
Jan 21, 2007
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#96
subversus said:
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!!
Nintendo has been doomed since the snes

wait a minute
 
Oct 17, 2005
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Paracelsus said:
I wouldn't play Tales of Portablia on Iphone even if the alternative was death, so I hope there's still a strong software support for both platforms.
people (most people) want to play epic RPGs in the comfort of home, not squinting at a small screen. portables now are all about $0.50 games and Angry Birds.
 
Mar 7, 2007
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#99
Ah, by the way: these losses are not due to foreign exchange losses like last year. They did not sell enough to compensate general and administrative expenses!

So, last year there was an excuse, but now Nintendo is seriously in trouble. The last time something like that happened it was in 2004 Q1 with the Gamecube.
Their assets are diminishing, i.e. there is an intake of what they earned through last years.

So, the decision to lower the price of 3DS so much has sure something to du with the fact that they hope to compensate A LOT through the games.