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Nintendo Q3 2014 Earnings Release (through December 2013)
- Thread starter Aquamarine
- Start date
- Status
ElectricBlanketFire
Member
So unless I'm missing something, this is a disaster of biblical proportions, right?
Am I misreading the charts somehow? Operating income is on the up again, if they sell a few more Wii Us, which they likely will, they'll make a modest profit in Q3 14/15. Losses seem containable. I'm not seeing disastrous at all. I'm somewhat bummed by that actually because it seems like Iwata can get away with it for the investors. Long term it's a problem when they need to introduce the 3DS successor. On the other hand, with the Vita almost dead there isn't really an impetus to come with anything soon.
No just barely scraping by and returning value to investors are two different things.
They will still be making a lot of changes. They can't continue this course and remain in business.
Captain Smoker
Member
Thanks.
"Advertising expenses" should be included in "Cost of Sales" then?
What about R&D-costs?
bequietdrive
Member
Wii U is trending again on Twitter. Most advertising the poor console's had..
Has it trended before? (Not counting when it was announced)
How are the GameCube software numbers much higher than the 3DS ones despite only selling half of that system?
no SW update
Look at the huge differences in software tie ratios. It's killing the 3DS:
Code:
Year Released (US) Platform Hardware Software Type Tie-Ratio
1985 NES 61.91 500.01 Console 8.08
1991 SNES 49.1 379.06 Console 7.72
1996 N64 32.93 224.97 Console 6.83
2001 GC 21.74 208.57 Console 9.59
2006 Wii 100.9 892.34 Console 8.84
2012 Wii U 5.86 29.37 Console 5.01
Code:
Year Released (US) Platform Hardware Software Type Tie-Ratio
1989 GB 118.69 501.11 Handheld 4.22
2001 GBA 81.51 377.42 Handheld 4.63
2004 DS 153.98 942.32 Handheld 6.12
2011 3DS 42.74 152.29 Handheld 3.56Advertising expenses would be Selling Costs. "Costs of Sales" include costs directly relevant to the production (e.g. materials, factory workers salaries, machine depreciation, other costs like electricity, gas, whatever is relevant to a given industry, basically anything that can be directly linked to goods production itself). R&D costs should be included in costs of sales too, though I'm guessing the rate at which they should be accounted depends on the country and company. But they are most definitely costs of sales.
Well, those numbers include the digital sales, most of which came from the game being bundled with Wii U.
But still... more HD ports please. Galaxy 1/2 for Summer 2014 kthx.
Apophis2036
Banned
Are they showing the older systems to make the WiiU/3DS numbers seem less awful instead of just directly comparing them to Wii/DS ? Or are they usually there anyway.
bequietdrive
Member
Only recently since Nintendo's financial woes have been publicised
They'd be crazy not to do it. The problem is what games will be remade/ported. Honestly I couldn't care less about Mario Kart Double Dash or Sunshine. Those would take away from 3D World and MK8. They'll never even entertain the idea of green lighting Eternal Darkness or Geist. There is of course Fire Emblem but I'd rather a sequel to Awakening.
I'd love me some Banjo Kazooie and Tooie HD, too. That is, if Nintendo still holds the rights of those two. I think so, I don't think Rare took those two with them.
And
OoT HD 1080p 60fps on Wii U. Yeah yeah, I know. Oh well, a brotha can dream.
starwarsfan541
Banned
Banjo Kazooie is owned by MS. Hence BK Nuts N' Bolts and...Banjo Kazooie and Tooie HD on XBLA.
AcademicSaucer
Member
If Iwata doesnt announce nintendo going full mobile and ditching the wii u, the investors will find a way to sack him .
That's been out for years now. On Xbox 360.
Spieler Eins
Member
Yeah, I know Rare took the Banjo license with them when they left for Microsoft. I'm aware of Nuts & Bolts, but I never knew XBLA also has Kazooie and Tooie? Fuck, man. Ah well, guess it might be a fine time to dust off the N64.
RurouniZel
Asks questions so Ezalc doesn't have to
Puzzle and Pokemon incoming! ;P
I suspect he wanted to mean how to use them in order to boost their business, but it could be a guess
I hope we'll hear about emerging markets and licensing efforts as well. And I want to know more about their mobile efforts too.
prag16
Banned
Because the Gamecube has 8 fiscal years of sales on there as opposed to 4 for the 3DS.
In its 4th FY the Gamecube had sold 156.30 million units according to Nintendo's historical data.
Aquamarine
Member
The disastrous performances are not immediately evident with the Q3 Earnings because it's the quarter where Nintendo earns the majority of its revenue and a great deal of its operating income.
Look at how horrid Nintendo's FY forecast is. -35 billion JPY operating income forecast and -25 billion JPY net income forecast is very, very bad for the management team that promised distinct YOY growth for the past 8 months or so.
The fact that Nintendo revised these numbers downward considerably just before they released these earnings is really telling.
Jesus Christ, thank you!
The numbers of Wii U being sold to consumers will be even worse.
Father_Brain
Banned
If those promotional smartphone apps are actually the centerpiece of Iwata's presentation, rather than just a small part of it... good fucking lord.
Sadly, I can actually see that being the case.
If wouldn't surprise me if the main part was about mobile, mostly because it's an issue that needs to be addressed to investors since mobile is all they think about. I doubt we'll see anything significant soon.
Miles Quaritch
Member
Pretty much. I'm talking more about a fully fledged handheld that also offers the option to connect to a TV/monitor and allow for traditional home console gaming.
It would mean Nintendo could focus on one device and not have to worry so much about spreading themselves so thin with first party releases.
Version 3.0
Member
They did Wind Waker to give a boost to their lineup, and they knew the next Zelda game is years away. Take the same logic and apply it to all franchises where the next game is coming approximately "never":
F-Zero (F-Zero GX HD)
Metroid (Metroid Prime Trilogy HD)
Star Fox (Star Fox Adventures / Assault HD)
Wave Race (Wave Race: Blue Storm HD)
1080 (1080 Avalance HD)
And sure, why not Eternal Darkness, and Metal Gear Solid: Twin Snakes? And for all our sakes, get Capcom to do REmake HD, and the Capcom 5 HD, why not? I'd buy them.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
Great post.
On a side note, I'm not expecting a grand announcement for their coming Inventors Meeting. I do believe Nintendo will be actively pursuing licensing opportunities as a way to reinvigorate their brands and increase their revenue streams until a more sound strategy is found for mobile & tablets.
Predictions for Nintendo's next fiscal-year:
- No price-cut on 3DS hardware. 2DS will fill the void
- No price-cut on Wii U hardware.
- A new Wii U sku will be introduced (no Gamepad - sold seperately) at 249.99$ in conjunction with Super Smash
- A greater focus on licensing agreements (actively pursuing the Pokemon model)
- No change of strategy for third-party titles
- Greater focus on digital content
- Localizations efforts increase
Funkyhamster
Member
Apologies if this has been asked already, but are the "Earnings Presentation" and "Investor Meeting" the same event? If they're separate, what is the distinction and when is the investor meeting? Or to put it another way: what time this evening should I get on NeoGAF to read about Iwata dropping bombs?
Aquamarine
Member
They're the same event.
Nintendo invites investors to Hotel New Otani in Tokyo where he and other Nintendo executives present their plans for short-term and mid-term corporate strategy, their sell-through success in various markets, etc. to investors.
Officially it's called "Third Quarter Financial Results Briefing for the 74th Fiscal Term Ending March 2014 - Company President's Presentation," but it can also be referred to as the "Investor Meeting."
This is the place where Iwata is going to talk about his reforms for the company, so this quarter's presentation and subsequent Q&A session are more significant than usual. That's why a countdown is front and center in the OP.
Don't confuse this with the "Shareholder's Meeting" that happens in June, where the Board sets a dividend and shareholders vote to re-elect Iwata / other Board members to Nintendo's Board of Directors.
Pie and Beans
Look for me on the local news, I'll be the guy arrested for trying to burn down a Nintendo exec's house.
Oh good lord.
Stumpokapow
listen to the mad man
That Nintendo Direct we had 2 fridays ago was pretty great! It went by so fast, I barely remember it at all!
I know we should read his post with my bodyweight (I'm a big boy) of salt, but I got a tingly feeling inside when I read the part about Zelda U. Guess I just really want something like that.
It was just 20 minutes of Iwata and Miyamoto dancing, though.
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