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[Road]

just curious, but does the DS have a shot at best selling console of all time?

If Nintendo achieves their plan for the entire fiscal year ending March, 2013 -- 2.5m units -- the DS total will go to 154m. As of December, 2011, the PS2 total was 154.4m.

Maybe Nintendo is being conservative so they have at least one forecast right, but it is looking less and less likely.

 

[mujun]

Can someone explain to me how Nintendo makes a loss this year? I realize that their hardware sales have slowed with the Wii and only picked up with the 3DS after the drastic price drop but I thought that they were pretty much always profitable on hardware and they do such big software numbers that it's profitable too.

 

[jcm]

Can someone explain to me how Nintendo makes a loss this year? I realize that their hardware sales have slowed with the Wii and only picked up with the 3DS after the drastic price drop but I thought that they were pretty much always profitable on hardware and they do such big software numbers that it's profitable too.

They are selling the 3ds below cost, and have been since the price cut. And they are likely spending a significant amount on Wii U R&D. And they effectively killed the DS and Wii prematurely. And they really, really suck at forecasting.

 

[Penguin]

Can someone explain to me how Nintendo makes a loss this year? I realize that their hardware sales have slowed with the Wii and only picked up with the 3DS after the drastic price drop but I thought that they were pretty much always profitable on hardware and they do such big software numbers that it's profitable too.

Mostly the unexpected 80 dollar price drop on the 3DS they had to take to move it in any volume.

And I assume some related cost to Wii U development.

 

[Somnid]

Can someone explain to me how Nintendo makes a loss this year? I realize that their hardware sales have slowed with the Wii and only picked up with the 3DS after the drastic price drop but I thought that they were pretty much always profitable on hardware and they do such big software numbers that it's profitable too.

Wii underperformed and wasn't really selling much, 3DS incurred losses from pricedrop, general targets were missed from their origins. Yen is still very strong so revenue is weaker (it actually got better though which is why despite undershooting their revised targets they didn't lose as much as expected).

Nintendo has also been doing expansion and lots of R&D both for future titles and Wii U and income didn't offset that.

 

[jman2050]

Mostly the unexpected 80 dollar price drop on the 3DS they had to take to move it in any volume.

And I assume some related cost to Wii U development.

It was postulated that Nintendo budgeted Wii U R&D assuming higher revenue than what they got. Sounds possible to me.

 

[1-D_FTW]

Can someone explain to me how Nintendo makes a loss this year? I realize that their hardware sales have slowed with the Wii and only picked up with the 3DS after the drastic price drop but I thought that they were pretty much always profitable on hardware and they do such big software numbers that it's profitable too.

Some of it's accounting, some of it's overhead. Employees are a fixed cost. Nintendo offices are a fixed cost. Factories are kind of a fixed cost. And if you're expecting to produce X amount of system or games, and you only have demand for half of that, your costs per unit go up. You really don't wanna to be massively off with your predictions and have lots of over capacity in the factories.

 

[Cipherr]

Just going to throw another tidbit out there.

The operating loss was 37.3 billion yen. Due to exchange losses totaling 27.7 billion yen, the ordinary loss was 60.8 billion yen, and the net loss was 43.2 billion yen.

What the hell.... Theres no way I'm reading that right, and if I am, I must be grossly misunderstanding it.

 

[mujun]

Thank you to the four of you!

I didn't realize they were taking such a bath on the 3DS price cut.

 

[BD1]

What the hell.... Theres no way I'm reading that right, and if I am, I must be grossly misunderstanding it.

The exchange rate of the Yen vs the Dollar is crushing Japanese companies. It's not just Nintendo. They benefited for a very weak yen for many year, and now the collapse of the dollar is really squeezing their bottom line.

 

[jonno394]

So, Nintendo expects to be making profiton every 3DS sold by September 2012, and it just so happens that scheduled just before that is NSMB2, way to make all that money back Nintendo, sly dogs.

 

[Kazerei]

What the hell.... Theres no way I'm reading that right, and if I am, I must be grossly misunderstanding it.

Nintendo has a ton of cash ... in foreign currencies. Those piles of cash depreciated greatly, though not as bad as Nintendo was expecting.

This is probably why Nintendo is so focussed on Japan right now. Our dollars and euros are worthless to them.

 

[mugurumakensei]

What the hell.... Theres no way I'm reading that right, and if I am, I must be grossly misunderstanding it.

You're reading it right. Almost half their losses are from the exchange rate.

 

[Kacho]

So, Nintendo expects to be making profiton every 3DS sold by September 2012, and it just so happens that scheduled just before that is NSMB2, way to make all that money back Nintendo, sly dogs.

Wow, brilliant move by them. Can't wait to see how much they turn things around.

 

[ScreenSplitter]

Wow, brilliant move by them. Can't wait to see how much they turn things around.

For something that outsold Galaxy by a metric fuck tonne, NSMB2 is a masterstroke, no matter how much certain people dislike it.

 

[zroid]

Impressive numbers for Ocarina 3D!

Looks like the Wii is set to pass the 100 mil mark before the end of the year :O

If Nintendo achieves their plan for the entire fiscal year ending March, 2013 -- 2.5m units -- the DS total will go to 154m. As of December, 2011, the PS2 total was 154.4m.

Maybe Nintendo is being conservative so they have at least one forecast right, but it is looking less and less likely.

I think once the 3DS gets a hardware revision, they will dramatically cut the price of the DS, and it may have a slight resurgence, probably during the 2013/14 FY. The DS really hasn't had a major price cut in response to the release of the 3DS yet, so there's still a good chance of more system sales over the next couple years.

 

[Kazerei]

Nintendo Net income by fiscal year

Really cool to see Nintendo's history all in one graph. Every hardware generation is a little bump, and then there's the Wii/DS mountain. And then oh shit, first negative fiscal year in 20 years. Next year isn't looking that good either, but Nintendo should at least be in the positive.

 

[BurntPork]

Looking at how crazy high the 3DS forecast is and how they expect to turn a profit, I wonder if they plan to launch a 3DS XL alongside NSMB2. They could give it a higher price so that both it and the current model can coexist. Seems like a win scenario for all involved parties.

 

[andthebeatgoeson]

I'm interested in the idea that Wii and Wii U can ship 10 million in the FY. Last time they sold under 6 million wii's in the initial FY. Could it be a repeat?

 

[Bruno MB]

Nintendo shipped this last quarter 120,000 units of The Legend of Zelda: Ocarina of Time 3D, for some reason I wanted it to outsell The Legend of Zelda: Skyward Sword xD

The last figure I have for The Legend of Zelda: Skyward Sword is 3.43 million units shipped.

 

[Alexios]

Wii software volume is pretty impressive, definitely against the "people only buy Wii Sports" bs since it's an attach rate of like, 8.5?

Much, much higher than the DS even (like 6?). I wonder how it compares to the PS360.

You might argue that every Wii comes with at least one game so it's 7.5 but eh, would someone buy a 360 and not add a game?

 

[Cygnus X-1]

God damn,

The incredible thing about this graph is now Nintendo is losing money though they are still selling so much more than during the pre-DS and Wii era.

And an additional note: Nintendo is predicting a net loss of 20 billion yen from March to September of this year. The full year forecast is 20 billion yen profits though. It's anyway a very small profit, considering the launch of a new system, lot of games incoming and 3DS becoming profitable from September 2012 onward.

The main cause is really the foreign exchange rate (proved by the fact that a small fluctuation of that rate caused the loss to decrease by almost 300 million $ in just three months) and the fact that they predict black figures for next year is very positive in comparison to most other export-oriented japanese companies.

 

[zroid]

Wii software volume sold is pretty impressive, definitely against the "people only buy Wii Sports" bs since it gives it an attach rate of like, 8.5?

Just Wii Sports and New Super Mario Bros.!

This is a nice graphic, actually

 

[Somnid]

Looking at how crazy high the 3DS forecast is and how they expect to turn a profit, I wonder if they plan to launch a 3DS XL alongside NSMB2. They could give it a higher price so that both it and the current model can coexist. Seems like a win scenario for all involved parties.

I just don't think Nintendo has enough man-power to release 2 consoles this year (especially in the same half) even if they wanted.

Really cool to see Nintendo's history all in one graph. Every hardware generation is a little bump, and then there's the Wii/DS mountain. And then oh shit, first negative fiscal year in 20 years. Next year isn't looking that good either, but Nintendo should at least be in the positive.

If you notice the drops between hardware cycles are bigger too. There's more spent each cycle than the last in terms of R&D. Kinda cool to see but hopefully this gen isn't an inflection point.

 

[Mpl90]

Just Wii Sports and New Super Mario Bros.!

This is a nice graphic, actually

Yeah, I really appreciate how Nintendo renewed the IR section of their site. Everyone can see numbers clearly now

Ah, I think no one noticed that Pokèmon is the new milion seller on 3DS, with 1.08 millions.

 

[massoluk]

Just Wii Sports and New Super Mario Bros.!

This is a nice graphic, actually

Heh, never would have guessed Wii Sports Resort overtook Wii Play and Wii Fit (well one of Wii Fit)

 

[frankie_baby]

If Nintendo achieves their plan for the entire fiscal year ending March, 2013 -- 2.5m units -- the DS total will go to 154m. As of December, 2011, the PS2 total was 154.4m.

Maybe Nintendo is being conservative so they have at least one forecast right, but it is looking less and less likely.

Dont forget nintendos figures dont include those sold in china, so it could well already have beat the ps2 but we'll probably never know

 

[Bruno MB]

Heh, never would have guessed Wii Sports Resort overtook Wii Play and Wii Fit (well one of Wii Fit)

Wii Sports Resort was heavily bundled.

Wii Fit + Wii Fit Plus = 43.15 million, that's brutal.

 

[watership]

It's very odd to read this thread, and then read all the other news outlets reactions to the news. Polar opposites. WHICH IS REAL!?

 

[Reuenthal]

http://www.nintendo.co.jp/ir/en/sales/hard_soft/index.html
Interesting, so N64 and Gamecube combined did about half as good as the Wii alone.

 

[Kazerei]

It's very odd to read this thread, and then read all the other news outlets reactions to the news. Polar opposites. WHICH IS REAL!?

I think the reality is that Nintendo had a terrible year, but they're not going third party.

 

[Cygnus X-1]

Btw

The company said Thursday its forecasts were based on the yen trading around 80.0 to the dollar and 105.00 against the euro, with the pair changing hands at 81.10 and 107.45 on Thursday, respectively.

Crazy. This fluctuations caused an improvement of 300 millions $. I wonder what Nintendo would have earned with a change ratio of 100:100 for the dollar and 100:120 for the Euro, as it was some year ago.

 

[Penguin]

I was beginning to like Forbes gaming articles, but this one seems so ill-researched, and just jumping on the port it to everything bandwagon

http://www.forbes.com/sites/davidthier/2012/04/26/will-nintendos-pride-be-its-downfall/

Names like Zelda, Mario and Donkey Kong have historically been some of the most reliable franchises in gaming. They might not be able to put up the numbers of today’s AAA blockbusters on Xbox and Playstation, but they’ve been doing it for a lot longer.

Even though 2 Mario games remain the best selling games of the generation. Well two diff brands in Kart and the new series.

And it’s not like the Nintendo franchises are as sacred as we imagine them to be. Skyward Sword was fine, but it wasn’t close to the best game out this year. Donkey Kong’s biggest title on the Wii was, tellingly, a re-release of the great ape’s classic adventure. Neither Super Mario Galaxy nor Twilight Princess sold the Wii.

Don't know what Skyward Sword not being GoTY has to do with this, but.. Donkey Kong Country Returns wasn't a re-make/re-release of a game.

 

[Bullza2o]

very good news. Congrats Nintendo!

 

[Reuenthal]

very good news. Congrats Nintendo!

Not sure I would congratulate them for losing money even if it was less than expected due to good sales. Something like "Congratulations for losing money since it is less than expected!" seems weird.

 

[Meier]

That yen conversion rate constantly blows my mind. I hope it gets closer to 100 to 1 whenever I do finally get to visit.. 120 to 1 like back in the day (what, 5 years ago maybe?) would be nice!

The lime green DSi in the OP is so fuckin sexy btw. I just love the matte finish on them... they photograph so well.

 

[Alexios]

Why do they have to convert the money, can't they keep yen as yen and dollars as dollars and invest in the respective regions?

Or do they already do that but still have to post the totals as yen for these reports?

Or are all their expenses as yen so the revenue has to be converted too?

 

[Cygnus X-1]

That yen conversion rate constantly blows my mind. I hope it gets closer to 100 to 1 whenever I do finally get to visit.. 120 to 1 like back in the day (what, 5 years ago maybe?) would be nice!

The lime green DSi in the OP is so fuckin sexy btw. I just love the matte finish on them... they photograph so well.

The point is also that these fluctuations are much more incisive on the earnings/losses than all the smartphones/Apple effects the press still talk about.

 

[Coolwhip]

Just Wii Sports and New Super Mario Bros.!

This is a nice graphic, actually

Would that picture look any different if you take 3rd party games into account?

 

[Lord_Byron28]

Would that picture look any different if you take 3rd party games into account?

No but even if you included all games from all platforms, half the list outsells any other 3rd party games.

 

[Vinci]

The point is also that these fluctuations are much more incisive on the earnings/losses than all the smartphones/Apple effects the press still talk about.

Welcome to Apple land!

 

[frankie_baby]

Would that picture look any different if you take 3rd party games into account?

I think some of the just dance games might have sold 10 million

 

[Clear]

I think the reality is that Nintendo had a terrible year, but they're not going third party.

Its closer to the truth to say that the Japanese economy has had a terrible year, hurting every export business in the country.

 

[andthebeatgoeson]

No but even if you included all games from all platforms, half the list outsells any other 3rd party games.

Not after you remove all the games that don't count.

It comes with a controller.gif

 

[Celine]

Would that picture look any different if you take 3rd party games into account?

Would that picture look any different if we take non-Nintendo games on any platform from every generation ?

Not by much.

 

[AlphaTwo00]

Would that picture look any different if you take 3rd party games into account?

I'm pretty sure Just Dance would be up there somewhere.

 

[Penguin]

Would that picture look any different if you take 3rd party games into account?

I think, if you go with just single SKU numbers, the CoDs and Halo 3 would make the list

And I think that's it
Possibly GTA IV

 

[Kazerei]

Would that picture look any different if you take 3rd party games into account?

I believe the best selling third party Wii games are Just Dance 3 and Mario & Sonic at the Olympic Games. Both are over 7 million but I can't find anything more specific.

Its closer to the truth to say that the Japanese economy has had a terrible year, hurting every export business in the country.

Nintendo's got to take some blame. Wii pretty much died and the 3DS launch was botched.

 

[radioheadrule83]

I was beginning to like Forbes gaming articles, but this one seems so ill-researched, and just jumping on the port it to everything bandwagon

http://www.forbes.com/sites/davidthier/2012/04/26/will-nintendos-pride-be-its-downfall/

Wow, whatever good work they'd done until now, that one article puts them in the bin of shame along with the crappiest of the crappy gaming blogs.

 

[jcm]

Why do they have to convert the money, can't they keep yen as yen and dollars as dollars and invest in the respective regions?

Or do they already do that but still have to post the totals as yen for these reports?

Or are all their expenses as yen so the revenue has to be converted too?

#2. They don't have to convert it, but they have to report the current yen value. They try to use the dollars and euros without converting them. The reason the swings are so large, is that Nintendo made a shitton of money the past few years, so they are sitting on a huge amount of foreign cash. Which is a pretty good problem to have.

They actually have lots of dollar expenses (salaries and operating costs in the US, plus Chinese manufacturing contracts are often dollar denominated). They pay all of that with dollar income, and it never gets converted. But they've got more dollars than they have dollar-denominated bills.