Nintendo Q3: Lowers 3DS by 2M Hard/12M Software, Lowers Forecast, Expects $837M Loss

#1
Consolidated Results For the Nine Months Ended December 2011 (Million Yen)
Net Sales ---> 556,166

Operating loss ---> 16,408

Net loss ---> 48,351

NDS Worldwide Hardware Unit Sales (Unit:Million)
Code:
                Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2004/05        -        -      2.84     2.42      5.26     5.26

FY 2005/06      1.29     2.19     5.69     2.29      11.46    16.72

FY 2006/07      4.54     5.55     8.79     4.67      23.55    40.27

FY 2007/08      7.00     6.37     11.14    5.81      30.32    70.59   

FY 2008/09      6.96     6.78     11.89    5.56      31.19    101.78

FY 2009/10      5.97     5.73     11.65    3.76      27.11    128.89

FY 2010/11      3.15     3.54     9.01     1.82      17.52    146.42

FY 2011/12      1.44     1.14     2.06      -        4.64     151.06
NDS Worldwide Software Unit Sales (Unit:Million)
Code:
                Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY       LTD

FY 2004/05        -        -      5.01     5.48      10.49    10.49

FY 2005/06      5.33     7.98     22.59    14.05     49.95    60.44

FY 2006/07      18.35    24.79    50.65    29.75     123.54   183.98

FY 2007/08      34.26    41.23    71.39    38.75     185.63   369.61   

FY 2008/09      36.58    48.43    78.77    33.53     197.31   566.92

FY 2009/10      29.09    42.06    50.22    30.22     151.59   718.5

FY 2010/11      22.42    32.42    44.15    21.99     120.98   839.48

FY 2011/12      12.13    16.86    22.21      -       51.20    890.69
Wii Worldwide Hardware Unit Sales (Unit:Million)
Code:
                Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2006/07        -        -      3.08     2.76      5.84     5.84

FY 2007/08      3.43     3.9      6.98     4.31      18.62    24.46   

FY 2008/09      5.17     4.92     10.42    5.43      25.94    50.4

FY 2009/10      2.23     3.53     11.29    3.48      20.53    70.93

FY 2010/11      3.04     1.93     8.75     1.36      15.08    86.01

FY 2011/12      1.56     1.79     5.61      -        8.96     94.97
Wii Worldwide Software Unit Sales (Unit:Million)
Code:
                 Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr     FY       LTD 

FY 2006/07        -        -       16.37    12.46    28.83    28.83

FY 2007/08       15.98    21.0     47.38    35.25    119.61   148.44  

FY 2008/09       40.4     41.0     82.39    40.79    204.58   353.02

FY 2009/10       31.07    45.14    80.43    35.17    191.81   544.83 

FY 2010/11       28.17    37.04    85.33    20.72    171.26   716.09

FY 2011/12       13.44    23.01    52.61      -      89.06    805.15
3DS Worldwide Unit Sales (Unit:Million)
Code:
Hardware Sales   Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr     FY      LTD

FY 2010/11         -        -        -      3.61      3.61    3.61

FY 2011/12       0.71     2.36      8.36      -       11.43   15.03       



Software Sales   Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr     FY      LTD

FY 2010/11         -        -        -      9.43      9.43    9.43

FY 2011/12       4.53     3.60     19.91      -       28.04   37.46

(**) FY 2011/12 Forecast (Unit:Million)
Code:
                    NDS        Wii        3DS

Hardware Sales      5.5        10.0       14.0

Software Sales      59.0       100.0      38.0


(**)January 26, 2012
(*) Original Forecast (Unit:Million)
Code:
                    NDS         Wii        3DS

Hardware Sales      11.0        13.0       16.0

Software Sales      67.0        120.0      62.0


(*)April 25, 2011

LINK

AndriaSang said:
Nintendo Lowers Earnings Forecasts, Expects Major Loss

33 min. ago / Anoop Gantayat / 1 Comment

As part of its quarterly earnings report today, Nintendo slashed its earnings forecast for the full year ending March 31, 2012 and also cut shipment forecasts for 3DS and Wii hardware and software.

The company had previously forecast (on October 27, 2011) sales of 790,000 million yen, operating income of 1,000 million yen, and a net loss of 20,000 million yen. It now expects sales of 660,000 million yen, an operating loss of 45,000 million yen, and a net loss of 65,000 million yen.

Reasons for the changes include stronger-than-expected yen appreciation and lowered unit sales forecasts.

Lower Hardware Forecasts

Among the lowered sales forecasts are a drop in 3DS targets from the previously announced 16 million units to 14 million units. Wii is now expected to sell 10 million units, down from the previous forecast of 12 million units.

While Wii software sales forecasts remain unchanged at 100 million units, Nintendo lowered its 3DS software sales forecasts from 50 million to 38 million units.

Nintendo also lowered DS targets. DS hardware is expected to sell 5.5 million units, down from the previous target of 6 million. DS software is expected to sell 59 million units, down from the previous 62 million forecast.


Q3 Results

For the nine month period ending December 2011, which includes the all important holiday season, Nintendo saw net sales of 556,166 million yen, down from the 807,990 million yen for the same nine month period in 2010. Last year's operating income of 158,795 million yen and net income of 49,557 million yen turned to an operating loss of 16,408 million yen and a net loss of 48,351 million yen.

Contributing to the increased losses for the period were price drops for 3DS and Wii. The high yen was once again a major issue for Nintendo, as 78.3% of Nintendo's sales for the nine month period came from outside of Japan. Exchange losses totaled 53.7 billion yen.

3DS sold 11.43 million units over the nine month period, bringing total worldwide sales to 15.03 million units. Wii sold 8.96 million units, a drop from the 13.72 million units the year prior, bringing its life to date total to 94.97 million units. DS sold 4.64 million units, a drop from the 15.7 million units the year prior, bringing its life to date total to 151.06 million units.

In software, Nintendo noted that Super Mario 3D Land and Mario Kart 7 became million sellers. They were joined by a third party million seller as well (Nintendo's earnings report did not mention the game, but it's Monster Hunter 3G). Zelda Skyward Sword had strong sales, particularly in America.
Source: http://andriasang.com/comzro/nintendo_earnings/
 
#5
Dat 3DS.
Also, does this make the DS the highest selling system of all time?

EDIT: Also, they revised their 3DS projections downwards for the year. Smart.
 
#9
So, they technically only need to sell .97 3DS in 3 months/worldwide, to meet their 16 million expectations? Or am I reading it wrong?

EDIT
Oh! (Post #16 :p)
 
#10
So, they technically only need to sell .97 3DS in 3 months/worldwide, to meet their 16 million expectations? Or am I reading it wrong?
The FY they wanted 16 mill. Don't count the 3.61 from launch time. They cut it down to 14 mill and need to move about 3 mill to reach expectations now instead of nearly 5mill.
 
#13
So, they technically only need to sell .97 3DS in 3 months/worldwide, to meet their 16 million expectations? Or am I reading it wrong?
The forecast (14m) is for this financial year (through to the end of March), which is currently sitting at ~11.5 million.

16 million was the initial forecast for this financial year.
 
#14
Andriasang has it in word form:
As part of its quarterly earnings report today, Nintendo slashed its earnings forecast for the full year ending March 31, 2012.

The company had previously forecast (on October 27, 2011) sales of 790,000 million yen, operating income of 1,000 million yen, and a net loss of 20,000 million yen. It now expects sales of 660,000 million yen, an operating loss of 45,000 million yen, and a net loss of 65,000 million yen.

Reasons for the changes include stronger-than-expected yen appreciation and sales unit forecast revision based off current sales performance.

Among the sales forecast revisions are a drop in 3DS targets from the previously announced 16 million units to 14 million units. Wii is now expected to sell 10 million units, down from the previous forecast of 12 million units.

While Wii software sales forecasts remain unchanged at 100 million units, Nintendo lowered its 3DS software sales forecasts from 50 million to 38 million units.
http://andriasang.com/comzro/nintendo_earnings/
 
#15
So, they technically only need to sell .97 3DS in 3 months/worldwide, to meet their 16 million expectations? Or am I reading it wrong?
Nop, you're right, their initial goal was to sell 16m by March 2012. I'm pretty sure this will be a given now. Amazing turnaround after that lacklustre April-June sales.

edit - Looks like differing interpretations coming out. I'm not too sure then anymore.
 
#16
The FY they wanted 16 mill. Don't count the 3.61 from launch time. The cut it down to 14 mill and need to move about 3 mill to reach expectations now instead of nearly 5mill.
See! Always mix the numbers!!.. read LTD in place of FY. :p

So, 4.57 million to go.

EDIT:
Oh, so they revised it and now is 14 million. Yeah, that kinda makes more sense actually. :p
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
#23
Seems to be a case of Nintendo perhaps overestimating impact of some titles and maybe some originally planned titles shifting in release schedules.
Yes, that's possible since we knew that both Luigi's Mansion and AC were originally slated for Q1, while now they aren't
 
#24
So they're lowering all these fiscal year forecasts with only 2 months left in the fiscal year? That seems odd.

Anyways overall, a lot of continued bad news for Nintendo. At least they've righted 3DS, although western sales arent through the roof yet. Unfortunately Wii has tanked and I have little hopes for Wii U.
 
#25
3DS software sales revised down from 62M to 38M?
What happened there?
They were projecting 50 million in the latest forecast prior to this one.

So they're lowering all these fiscal year forecasts with only 2 months left in the fiscal year? That seems odd.
Lots of variance in the previous quarter with it accounting for such a high percentage of sales.

And those aren't the latest forecasts previous to this one, not sure why they are in the OP
 
#26
I wonder if Nintendo will ever release DD numbers. Also, briefing scheduled for tomorrow! Bring on the announcements to reassure investors, especially after everything has been revised down.
 
#28
So nintendo has a loss of around $62mil? Yikes. They should make it back though since they have good things coming down the pipeline. I wonder how much of that is Wii U R&D.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
#29
I think also DS and especially Wii declines, especially compared to their expectations, are biting them in their asses.

However, great 3DS comeback.
 

DCharlie

Always bet on white
#30
So nintendo has a loss of around 62mil? Yikes. They should make it back though since they have good things coming down the pipeline. I wonder how much of that is Wii U R&D.
if you read the statement from Nintendo reposted above they tell you exactly why it's recorded a loss, no mention of Wii U R+D costs.

I think also DS and especially Wii declines, especially compared to their expectations, are biting them in their asses.
two major markets (US and Europe) had 20%+ lower xmas sales and as we are basically still in the grips of financial woes then i'm sure luxuries will start to go. The idea that the games industry is somehow recession proof should be long dead. 3DS isn't selling h/w and s/w to the level they expected, they could well be taking a loss on each unit on top of that, and then cap it off with a stale Wii/DS and a FX rate on the lower sales too.
 

DCharlie

Always bet on white
#36
Yen just keeps killin' em
let us be 100% clear about this - this is NOT to do with _JUST_ the yen. The 3DS has underperformed, Nintendo have had to swallow a huge price cut, the software sales have been cut, the DS is done, the Wii is petering out.

It's NOT the Yen. It's a factor in reducing repatriated takings based on their expected FX rate at the start of the FY, but that's not going to account for ALL thier woes.
 

JJConrad

Sucks at viral marketing
#38
3DS software sales revised down from 62M to 38M?
What happened there?
I've found this early today, while looking waiting for the update (its was updated too). It's their hardware and software sales broken down by system and region going back 14 years. For the life of me, I've never seen anyone post it here on NeoGAF before.

The 62M forecast was extremely bullish for one of their handhelds at that age. The DS was the largest at <50M, and it had an extra quarter of ownership maturity.
 

cw_sasuke

If all DLC came tied to $13 figurines, I'd consider all DLC to be free
#39
With their current portfolio this was expected - they need the WiiU and 3DS should be able to make more money on software in the next FY when bigger titles are released +MK7/3D Land that keeps selling.

But yeah it's all about WiiU - so they better have a great e3.
 

DCharlie

Always bet on white
#43
With their current portfolio this was expected - they need the WiiU and 3DS should be able to make more money on software in the next FY when bigger titles are released +MK7/3D Land that keeps selling.

But yeah it's all about WiiU - so they better have a great e3.
pricing is going to be key on the WiiU along side initial software.

We've seen how many people were saying that following being burnt by the 3DS that they'd wait for a price drop rather than get "ambassador"'ed so i'd expect that might weigh on the pricing decission.
 
#46
With these numbers Iwata will have no choice but to spill some news at tomorrow's briefing to calm investors and boost confidence in the company's future. Looking forward to it.
 
#47
These does not look very good numbers at all.. especially the Quarterly figures of Wii & NDS... Never thought that a hit product of last yr can die so quickly
 
#49
So am I understanding things correctly by thinking they have $15 billion in current assets? Or is that off by a factor of 10 too?
I got around 18 billion, using a random yen to dollar converter i googled.

But maybe i punched in the wrong number. Its been so long since i had to study a dam balance sheet.
 
#50
With these numbers Iwata will have no choice but to spill some news at tomorrow's briefing to calm investors and boost confidence in the company's future. Looking forward to it.
I hope so. Iwata has shown a tendency to be more liberal and less conservative in his response to being financially backed in a corner. I like it it for the most part, but let's hope he knows what he's doing.


I got around 18 billion, using a random yen to dollar converter i googled.
that include non-current assets