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Nintendo Q3 2009 Earning report: 9-mth profit down 41 pct

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Nintendo 9-mth profit down 41 pct, keeps outlook

TOKYO, Jan 28 (Reuters) - Nintendo Co Ltd (7974.OS) posted a 41 percent fall in nine-month profit as sales of its DS handheld game player slowed and it cut the price of its Wii console, and the company kept a forecast for a first annual profit slide in four years.


April-December operating profit at Nintendo, which competes with Sony Corp (6758.T) and Microsoft Corp (MSFT.O), was 296.7 billion yen ($3.3 billion), down from 501.3 billion yen.

Demand for the once-mighty DS began to slow as it entered its fifth year of production a year ago, and Apple Inc's (AAPL.O) iPhone and other smartphones emerged as alternative portable game machines.

Profitability also came under pressure because Nintendo cut the price of the Wii by a fifth in the second half of 2009, responding to similar cuts by Sony and Microsoft, which offer the PlayStation 3 and the Xbox 360, respectively.

For the year to March, Nintendo kept unchanged its operating profit forecast of 370 billion yen, down from 555.3 billion yen a year earlier and versus a consensus of 361.1 billion yen in a poll of 20 analysts by Thomson Reuters I/B/E/S.

Shares in Nintendo closed up 2.5 percent at 26,320 yen ahead of the announcement, hitting a six-month high and outperforming the Nikkei average .N225, which rose 1.6 percent.

Over the past year, Nintendo shares have lost 17 percent, while Sony gained 68 percent.
Click to expand...

http://www.nintendo.co.jp/ir/pdf/2010/100128e.pdf
 
Profit is profit. As long as operating costs remain below revenue and Nintendo strive to keep a healthy warchest, I see no problems with this.
 
Worldwide LTDs
Wii (hw): 67.45m
Wii (sw) 509.66m
NDS (hw): 125.13m (of which 16.43m DSi, 0.70m DSiLL)
NDS (sw): 688.29m


30j4lky.png
 
Eh, the actual source please? I doubt the financial report from Nintendo.co.jp would be so negative and mention competitors like the iPod.
 
viciouskillersquirrel said:
Need LTDs, stat!
Click to expand...

Nintendo Financial Report Q3 2009
http://www.nintendo.co.jp/ir/pdf/2010/100128e.pdf

Hardware: April 2009 - Dec. 2009
NDS - 23.35 million WW
WII - 17.05 million WW

Software: April 2009 - Dec. 2009
NDS - 121.38 million WW
WII - 156.64 million WW

NDS
Pokemon HG/SS - 3.74 million units LTD
Tomodachi Collection - 2.74 million units in 3Q's
Pokemon Platinum - 3.1 million units WW
TLoZ: Spirit Tracks - 2.45 million units WW

WII
NSMBW - 10.55 million units WW
Wii Fit Plus - 10.16 million units WW
WSR - 13.58 million units WW
 
Net sales - 1,182,177 million Yen (~ $13.1b)

Operating income - 296,656 million Yen (~ $3.3b)

Net income - 192,601 million Yen (~ $2.1b)


Hardware Shipments:

NDS - 23.35m (LTD - 125.13m)

Wii - 17.05m (LTD - 67.45m)


Software Shipments:

NDS - 121.38m (LTD - 688.29m)

Wii - 156.64m (LTD - 509.66m)
 
toxk_02 said:
Worldwide LTDs
Wii (hw): 67.45m
Wii (sw) 509.66m
NDS (hw): 142.26m (of which 16.43m DSi, 0.70m DSiLL)
NDS (sw): 688.29m


30j4lky.png
Click to expand...
How did you come to these numbers going by that chart? Genuine question.

Edit: didn't you add the Lite and LL total to the already total amount of DS'es?
 
Souldriver said:
Eh, the actual source please? I doubt the financial report from Nintendo.co.jp would be so negative and mention competitors like the iPod.
Click to expand...

The article is from Reuters, that was the first source available and i linked to the report from Nintendo.
 
bmf said:
I want to pick apart reuters article piece by piece, but it's bedtime. I'll let other people do it.
Click to expand...
Reuters' job is to look at it from an investor point of view and coach it in language an investor can understand. What an investor is looking for is portfolio growth, rather than absolute profit. This means that if Nintendo don't meet their projected earnings, but still make major profits, their stock price will drop.

Yes, they got the narrative wrong, but you can't expect the Reuters reporter to follow the ins and outs and nuances of every industry they write about.
 
Souldriver said:
How did you come to these numbers going by that chart? Genuine question.

Edit: didn't you add the Lite and LL total to the already total amount of DS'es?
Click to expand...
Ah yes I messed up the DS numbers.
 
Regulus Tera said:
How long until it breaks the NES record?



So how long until it surpasses the PS2, again?
Click to expand...
Sorry I accidentally double counted the DSI and DSiLL, the correct DS figure is 125.13m.
 
Regulus Tera said:
How long until Wii breaks the NES record and the DS surpasses the PS2, again?
Click to expand...

At 140? I think that would be past even the most generous PS2 shipping numbers.
 
I can't wait for Apple news sites to spin this news proof of the iPhone/iPod touch supplanting the DS as the leading mobile games device.

142 Million DS systems? Where's the PS2 at?

EDIT: Oh. 125 Million.
 
BlackNMild2k1 said:
Tomodachi Collection - 2.74 million units in 3Q's
Click to expand...

Why this hasn't been announced for an overseas release baffles me.

BlackNMild2k1 said:
NSMBW - 10.55 million units WW
Wii Fit Plus - 10.16 million units WW
WSR - 13.58 million units WW
Click to expand...

Iwata fulfilled his promise of all of them selling more than ten million before the end of the fiscal year. :D
 
bmf said:
I want to pick apart reuters article piece by piece, but it's bedtime. I'll let other people do it.
Click to expand...
It would be an unwise thing to do anyway considering Reuters large credibility and adherence to objectivity.
 
grandjedi6 said:
It would be an unwise thing to do anyway considering Reuters large credibility and adherence to objectivity.
Click to expand...
Once again I'm reminded why I shouldn't post so much when I should be asleep in bed. When I scanned the line about sliding demand for the DS, I recalled the line from the NPD thread about Nintendo breaking records with the DS in 2009. Didn't take into account at the time I posted that the financial statement would be concerning APR-DEC 2009, and more importantly that it would be reflecting worldwide sales and not US sales.

blah
 
LINK.AGE76 said:
We should get the release dates within 24 hours I believe. Last time it was a day after their report.
Click to expand...
oh for the love of....

Someone really is going to make a thread about them again, aren't they? :/
 
grandjedi6 said:
oh for the love of....

Someone really is going to make a thread about them again, aren't they? :/
Click to expand...

People must be informed when Kirby (GCN) is coming out.
 
Regulus Tera said:
Why this hasn't been announced for an overseas release baffles me.
Click to expand...
If I recall correctly, one of the larger features of the game is that the Miis do text-to-speech. As I understand it, this is much easier to do with Japanese than English. There might be similar problems doing text-to-speech in other languages as well.
 
Results for their Q3 2009:

Net Sales - 634,119 million Yen (-9.4% YoY)

Operating Income - 192,296 million Yen (-23% YoY)

Net Income - 123,109 million Yen (+82% YoY)


Hardware Shipments:

NDS - 11.65m (-2% YoY)

Wii - 11.3m (+8.5% YoY)


Software Shipments:

NDS - 50.23m (-36% YoY)

Wii - 80.43m (-2.4% YoY)
 
starship said:
Hardware Shipments:

NDS - 11.65m (-2% YoY)


Software Shipments:

NDS - 50.23m (-36% YoY)
Click to expand...
Huh, the software is collapsing far more than the hardware.

Does that normally happen?
 
Calendar year comparisons (in millions):

Code: 
			WII
-----------------------------------------------------
	HARDWARE			SOFTWARE
----------------------		---------------------
	2008	2009			2008	2009
----------------------		---------------------
Q1	 4.3	 5.4		Q1	 35.3	 40.8
Q2	 5.2	 2.2		Q2	 40.4	 31.1
Q3	 4.9	 3.5		Q3	 41.0	 45.1
Q4	10.4	11.3		Q4	 82.4	 80.4
----------------------		---------------------
YEAR	24.8	22.5		YEAR	199.0	197.4


			NDS
-----------------------------------------------------
	HARDWARE			SOFTWARE
----------------------		---------------------
	2008	2009			2008	2009
----------------------		---------------------
Q1	 5.8	 5.6		Q1	 38.7	 33.5
Q2	 6.9	 6.0		Q2	 36.6	 29.1
Q3	 6.8	 5.7		Q3	 48.4	 42.1
Q4	11.9	11.7		Q4	 78.8	 50.2
----------------------		---------------------
YEAR	31.4	28.9		YEAR	202.5	154.9
Everything is down YOY. 3rd parties to the rescue?

Forecast change:
Wii software: 180 million -> 192 million. (WSR, WF+ and NSMBWii exceeding expectations?)



2009 hardware:

NDS - 28.9 million
WII - 22.5 million
360 - 10 million+
 
toxk_02 said:
Worldwide LTDs
Wii (hw): 67.45m
Wii (sw) 509.66m
NDS (hw): 125.13m (of which 16.43m DSi, 0.70m DSiLL)
NDS (sw): 688.29

30j4lky.png
Click to expand...
Just looking at this chart I'd say there's been a noticeable drop in NDS unit sales outside of the U.S. and Japan in the 2009 vs. 2008 comparison.

Strictly comparing the US vs. Rest of World data, the 2009 numbers would have looked like 1,412 (Hardware) and 6,362 (Software) had they maintained the proportionate sales ratios from 2008.

Yet instead they were 930 and 3,938. That's a significant drop. It would appear that the once-mighty DS stigma is a valid one outside of its home (Japan) & primary sales markets (the U.S.).
 
Road said:
Forecast change:
Wii software: 180 million -> 192 million. (WSR, WF+ and NSMBWii exceeding expectations?)
Click to expand...
No?
From the report:

"The Wii software unit forecast increased by 12 million units above the annual forecast (180 million units), which was announced on October 29, 2009, to 192 million units. However this increase is due to recognizing software units bundled with hardware sold during the December quarter and does not represent a substantive change in the annual forecast."
 
DefectiveReject said:
Any company would give their left arm for 3 10m+ selling games in a year
Click to expand...

But they'd have been even happier if Wii Music and Animal Crossing were also on that list for 2009. Nintendo turned it around admirably at the end of the year, but there's no way to erase the less-than-expected impact of Animal Crossing and the (vastly underrated/widely misunderstood) Wii Music from the whole of 2009's results.
 
So in around 5.1 years, Nintendo sold 142 million DS units. It took Apple more than 6 years to reach the same number with the iPod. I think that really demonstrates what a monster the DS is.
 
starship said:
No?
From the report:

"The Wii software unit forecast increased by 12 million units above the annual forecast (180 million units), which was announced on October 29, 2009, to 192 million units. However this increase is due to recognizing software units bundled with hardware sold during the December quarter and does not represent a substantive change in the annual forecast."
Click to expand...
Thanks. I should read everything...
 
swerve said:
But they'd have been even happier if Wii Music and Animal Crossing were also on that list for 2009. Nintendo turned it around admirably at the end of the year, but there's no way to erase the less-than-expected impact of Animal Crossing and the (vastly underrated/widely misunderstood) Wii Music from the whole of 2009's results.
Click to expand...

How much did AC end up selling anyway?
 
Holy crap, Game Boy and NES dethroned. It is the Silver age of Nintendo. And they're set up to do even better next gen IMO, since they started from behind this gen.

Michan said:
So in around 5.1 years, Nintendo sold 142 million DS units. It took Apple more than 6 years to reach the same number with the iPod. I think that really demonstrates what a monster the DS is.
Click to expand...
Not quite yet.

But yes, I've always wondered why the DS hasn't gotten more cred. Ipod is this assumed 'most successful device evar' in the media, and the DS has always barely been mentioned.

More to the point, ipods likely have a much higher proportion of users of upgrading to new models then the DS.
 
The iPod talk reminded me of something else: The Wii is still the fastest selling console ever.

After 13 quarters:

WII - 67.45 million
NDS - 64.79 million
 
Kind of a dumb choice of headline. Their troubles earlier in the year are old news, but their results for the quarter outperformed expectations.
 
That is the whole point of expectation. They went from 11M+ on DS to 3.8M on Wii.

Still, AC is in the top 15 of Wii million sellers.
 
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