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Nintendo FY11/12: losses smaller than expected ($532 M), 3DS misses forecast again
- Thread starter Kazerei
- Start date
Clear
CliffyB's Cock Holster
Kazerei said:
True. But its still a terrible economic climate to turn a profit in.
Wii's collapse has been more rapid than expected, but truth be told everything about is market performance has been unprecedented. As to 3DS, I've long been critical of the way they basically sacrificed the DSi line to give it a foothold, but its doing well now so I guess it was the right move under the circumstances.
unrealistic even.
lol
You did bring up a good point though. Japanese export businesses are suffering, and the whole videogame industry seems to be suffering too. Pretty much the worst time for a generational transition, on top of Nintendo's mistakes.
Clear
CliffyB's Cock Holster
ElTopo said:
I just see Nintendo betting massively on the tablet-controller synergy to revitalize sales the way the Wii-mote did a few years back. Its less a generational advance and more about trying to find a new unique selling point.
At this point it seems like as smart a bet as any, because I honestly can't see Sony and MS doing better from a platform of "more of the same, but better". I believe we've hit a point where the cost of maximizing the benefits of the technology are simply too high compared to potential returns to use visual quality as primary motivator for uptake.
In that respect, perhaps Ninty's technological lowballing is the smartest strategy at this point in time.
Cygnus X-1
Member
No, I mean: I'm also a Apple-user. Mac, iPhone, etc...but I also can read numbers. And numbers tell that effectively the big problem of Sony, Sharp, Nintendo and most electronic companies that sell lot in western markets is the exchange rate. Sure, some market is eaten my Apple and the hype behind them is crazy to the point that the value of their shares will reach probably something between 750 and 1000 $ per share. Insane.
But this doesn't change the fact that japanese companies are not able to make money from the foreign markets anymore, due mostly to this single reason alone. I'm especially shocked by the fact that in 2003 Nintendo made profits with such ridiculous sales. If at that time such exchange rate existed, how much money would they have lost I wonder?
Cygnus X-1
Member
Are marketing expenses and R&D investments included in the forecast, right? I mean, these two categories are counted in the expenses, aren't they?
HoodWinked
Member
sorta thread worthy but i'll leave it here.
Nintendo confirms that it's selling 3DS at a loss, expects that to change
http://www.engadget.com/2012/04/26/nintendo-confirms-that-its-selling-3ds-at-a-loss-expects-that/
now heres what this is basically saying...
middle of the fiscal year. fiscal goes from april to march, would put mid around October, or holiday 2012 time frame. so how do you drop the cost of of hardware? obvious a hardware redesign.
Nintendo confirms that it's selling 3DS at a loss, expects that to change
http://www.engadget.com/2012/04/26/nintendo-confirms-that-its-selling-3ds-at-a-loss-expects-that/
now heres what this is basically saying...
middle of the fiscal year. fiscal goes from april to march, would put mid around October, or holiday 2012 time frame. so how do you drop the cost of of hardware? obvious a hardware redesign.
bigtroyjon
Member
The forecasts they are talking about is for next FY. They had been forecasting the Euro to be worth 98 Yen a few months ago, a difference of about 10% for the FY that just ended.
Fantastical
Death Prophet
It doesn't have to mean that there is a redesign coming, but if a hardware redesign isn't coming until October don't expect an announcement any time soon.
Couldn't it just be a volume thing that gets costs down? NSMB2 and the holiday season would do it.
You sure about that...
I'm pretty sure original hardware gets cheaper and cheaper to make, but a redesign will make it slightly more expensive but reinvigorate sales.
Don't take my comment as an attack against Apple. I have an iPhone. I'm happy.
My point is that many analysts, I believe, truly just want to see how high Apple's stock can go at this point. It's almost fun. That's why they suggest Nintendo shifts to iOS - 'cause let's be honest, that would help Apple more than it would Nintendo.
EDIT @ Hoodwinked:
Production costs go down over time. Has nothing to do with a redesign.
I'm not saying a redesign will never happen, just that it needn't be the case here.
Fantastical
Death Prophet
Yeah that's my thinking. If Nintendo makes the 3DS cheaper (to make) than the current model that's the wrong direction to go in. Or maybe the current 3DS just looks cheap, I don't know, but I want them to wow me with this redesign.
That seems like a leap in logic to draw a conclusion, you want to see
ScreenSplitter
Member
The mind of people who want a 3DS Hardware redesign;
3DS doing badly = Obviously needs a hardware revision
3DS doing okay = Y'know what'd pick things up? Hardware revision
3DS doing great = Oh wow, you know what'd help this!? Hardware revision.
People see what they want to see.
It's more likely a matter of Nintendo putting in an order for X million parts from suppliers last year at a certain price which results in sales at a loss, but this year's order of Y million parts is expected to be profitable per unit just by virtue of volume and it being a year later.
well personally i want one because the 3ds hardware is some of nintendos worst.
to me is way better than DS fat, original GBA and GBA micro.
What. The GB Micro is the best handheld design ever.
Nothing new actually:
http://www.nintendo.co.jp/ir/en/library/events/120127/03.html
Iwata said:
(and by the way, it doesn't necessarily imply that a HW redesign is coming in the very same timeframe)
I'm guessing a good deal of that software prediction was for games that they thought would be ready for this FY but weren't.
Otherwise the original forecast doesn't make sense at all.
Graphics Horse
Member
Not as ambitious as their prediction for next year
Actually I was thinking hardware.
I think a new model must be on the cards if they're expecting sales to rise.
hardcastlemccormick
Banned
It could use some work, but I would prefer a more quiet, iterative approach that Sony uses rather than a full-out refresh. I like the system, it's just a few things that need tweaking. Way less than the original DS needed.
How dare you.
No way in all creation. I still have one of these things because it's just that awesome.
frankie_baby
Member
Not as ambitious as their prediction for next year
Actually I was thinking hardware.
I think a new model must be on the cards if they're expecting sales to rise.
Actually sales rising shouldnt be too difficult at all, to start with q1 should be noticably up simply because last years was terrible due to overshipping the launch
DCharlie
And even i am moderately surprised
economies of scale with production, reduction in cost of components, etc too.
I have a feeling though they will release a redesign as a "pro" model at a higher price - which will sell like hot cakes. Make a press release making a big song and dance about the "unprecedented demand" and vow to increase production to meet the huge demand and slowly stick a knife into the lower margin original 3DS. Bingo.
Looks familiar!
ScreenSplitter
Member
How exactly? Battery life/screen imprints aside, it's a very solid piece of hardware, and one the least in obvious need of redesigning.
GBA = Clearly needed lithium battery & backlight
DS = Incredibly bad form factor/dim screen
The 3DS is small, sleek, and pretty well built. There's a few things I personally don't like, i.e. pointy shoulder buttons, but overall if a 3DS redesign came out I'd see very little reason to upgrade unless they added the second analog stick (which they most likely won't)
EvilDick34
Banned
Nintendo will NOT release a re-designed 3DS around the launch of the WiiU, no way. FALL 2012 is all WiiU for Nintendo.
civilstrife
Member
I think it's a testament to the strength of Nintendo's properties that their absence on the app store is this noticeable to mainstream news outlets.
Graphics Horse
Member
Q1 should be up yeah, maybe +1.2M
You're right, August is more likely.
EvilDick34
Banned
frankie_baby
Member
Its probably all because these so called journalists want to play the games themselves but cant be bothered to buy a nintendo console, the sooner nintendo get back to profitability the better then there wint be any negative news to report so throwing in nintendo bashing quoted will just be out of place, unfortunately i doubt profitability will happen til the 3rd quarter so we might have another 9 months of the crap
shinra-bansho
Member
Beat the forecast and back to profitability next year - presumably Wii U will be sold at a profit on HW. I wonder if missing the 3DS HW forecast actually helped the bottom line.
Wii HW has unsurprisingly completely collapsed.
What are people surmising the Wii/WiiU split is in their forecast 10.5M for FY13? Looking at the Wii numbers I'd peg it at about a 50:50 split.
Historically, what have other consoles sold in their first 6 months after launch?
Wii HW has unsurprisingly completely collapsed.
What are people surmising the Wii/WiiU split is in their forecast 10.5M for FY13? Looking at the Wii numbers I'd peg it at about a 50:50 split.
Historically, what have other consoles sold in their first 6 months after launch?
Version 3.0
Member
Don't hold your breath for profits to shut them up. They're not basing anything on reality now, why should they later on?
lunchwithyuzo
Banned
A Twisty Fluken
Member
I love the idea of the Micro. But in practice, it's the SP+ all the way all day long. Except when I need headphones. Micro is just too small if I am not carrying it around.
frankie_baby
Member
I doubt wiiu will be sold at a profit but no more huge r and d, finally profitable 3ds hardware along with software on all systems should tip them into profit
shinra-bansho
Member
frankie_baby
Member
Because nintendo know they have a years head start on the competition, building up as big a userbase as possible before the other 2 come out gives them a shot at ps2 style domination of the next gen
shinra-bansho
Member
I don't see how that's necessarily dichotomous to selling profitable HW.
What are you anticipating the price point, retailer cut and cost of goods will be?
this
3DS is sold at a loss, GameCube was sold at a loss when it launched, etc...