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Nintendo releases modified full-year financial forecast (expects lower sales/profits)

T

TheJoRu

Member
Tatsumi Oga said:
Hate to sound stupid, but i never really get these things. That means March 2017 or this March? It's a bit unclear to me.
Click to expand...

We are currently in FY15/16 which ends this March, which is what the forecast is for. After that we enter FY16/17. They are currently not talking in any detail about their plans for FY16/17.
 
U

Urthor

Member
bluexy said:
From what I can tell, the yen has lost value in relation to the dollar and it will result in a not immaterial loss, so they've updated their forecast as a result.
Click to expand...

Why would the yen losing value in relation to the dollar result in a loss? They're exporting software, and the Wii Us aren't being made at a loss are they?

Shouldn't that mean their yen denominated earnings rise, but their USD earnings fall?

Stop It said:
Incorrect.

The Yen has strengthened against the USD in recent weeks as investors look for safe havens because central banks, Japan included experiment with negative interest rates.

As Nintendo books considerable sales from the US and Europe this means less revenue in JPY than expected. That and the Wii U continuing to drop off a cliff doesn't help. Hopefully NX and their mobile efforts will help in the coming years.
Click to expand...



TY someone has their shit straight
 
1

1st Course

Member
vinnygambini said:
The only potential asset I see Nintendo writing down are the developments done in QOL prior to Iwata's death.

I think there was a $100M investment done in the technology space back in 2014? Duno.
Click to expand...

Is the management still targeting 100 billion yen opt profit for next year? imo very unlikely they will hit that target but maybe I'm underestimating the mobile ventures.
 
C

Cheebo

Banned
And people still bizarrely claim on GAF 3DS is killing it and can keep going.

If NX Handheld does not turn around the trajectory of 3DS then then dedicated handheld market will be dead.
 
C

Caleones

Banned
Could this mean that they are about to lower the price to the Wii U and 3DS and thus make less profit on a "per unit" basis?
 
Z

zelas

Member
http://www.bloomberg.com/news/articles/2016-02-26/nintendo-cuts-annual-profit-forecast-amid-weak-christmas-sales

Operating income will be 33 billion yen this fiscal year, down from an earlier projection of 50 billion yen. The currency fluctuation reduced profit by 20 billion yen, Nintendo said. The company cuts its projection for sales 12 percent to 500 billion yen, the lowest revenue level in at least 15 years.
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Lowest revenue in at least 15 years??? Wow. Worse than the gamecube era? Worse than when they were actually posting losses??
 
R

Rodin

Member
So, what were those analysts saying about releasing the NX in 2016 being suicide?

6jdJl8P.gif
 
K

KillerMan91

Member
If they hit the new forecast of 10.1 million hw shipped this FY between all Nintendo systems you have to go back to 1995-1996 FY to find a weaker year (year before N64 launch and Pokemon boom hitting GameBoy sales). They shipped 10.02 million units back in FY 1995-1996. If they actually miss even that 10.02 million figure you have to go back to 1989-1990 to find weaker year (9.28 million units shipped). Nintendo really needs to NX to catch on.
 
K

KingV

Member
Vena said:
Yen tanking was likely unexpected.
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The Yen tanking should be a positive for Nintendo, since they report their profit in Yen.i.e $1 now nets Ninty more Yen then it did the day before. That's actually something that would usually Raise profit forecasts. I think they might have had an even more aggressive FOREX assumption in their plan.
 
S

Scrawnton

Member
DrROBschiz said:
setting the stage for a big turnaround for the NX launch

hmmm i wonder if I should buy Nintendo stock lol
Click to expand...
Depends on if they're writing off NX R&D costs this fiscal year or next fiscal year. If they lost money this year due to R&D and manufacturing costs, they should be primed for a good profit next year.
 
V

Vena

Member
crinale said:
Actually this financial result is the rather a reason, not the cause of WiiU shortage in Japan IMHO.
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Makes sense. They are expensive to make but I do think issues at the production is still a valid cause.

KingV said:
The Yen tanking should be a positive for Nintendo, since they report their profit in Yen.i.e $1 now nets Ninty more Yen then it did the day before. That's actually something that would usually Raise profit forecasts. I think they might have had an even more aggressive FOREX assumption in their plan.
Click to expand...

I probably should have been more clear in that I was (if you follow later discussion) talking about favorable yen exchange rates for Nintendo (which tanked), that is to say the USD buys less Yen which hits them pretty hard due to the large western market.

JeffGrubb said:
I think those were always included in the guidance.

Story is basically this:

  • Exchange rate is tough for Japanese yen
  • 1M fewer 3DSes sold than predicted.
  • 9 million fewer 3DS games sold.
  • Wii U and Wii software up a little, but not enough to make a difference.
  • Lowering revenue expectations by 12.2 percent
Click to expand...

And this is what happens when you basically have no holiday line-up for the 3DS. I swear, something was planned for this year but was secretly pushed back later on because it would go a long way to explain the fall of the 3DS figures.
 
S

Spyder_Monkey

Banned
So much for "Nintendo-like profits in 2016." I would say this seems like a sign that the NX might not be releasing this year but someone is going to mention Trev/Nintendo HAS to release in 2016/using cut financial expectations as a reason itself.
 
V

Vena

Member
Spyder_Monkey said:
So much for "Nintendo-like profits in 2016." I would say this seems like a sign that the NX might not be releasing this year but someone is going to mention Trev/Nintendo HAS to release in 2016/using cut financial expectations as a reason itself.
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Wrong year (CY2015 (from March 2015) into March 2016 is FY2016) and wrong quote.

FY2016 would, in fact, be the year in which you would expect them to be the least profitable/lowest revenue (though not this bad, and wouldn't have predicted yen trade changes) as development resources transitioned and projects ran out (and this is especially hurt by the fact that the 3DS (and WiiU) really didn't have a holiday "game" this year). FY2017 with hardware launches should pop up regardless of long term successes unless the launch is a total disaster.
 
N

narton

Member
Interesting that they've actually raised expectation of wii U software sold. But those 3DS drops aren't good. Very strategic to schedule the Pokemon Direct along with the revision.
 
Papacheeks

Papacheeks

Banned
And people mocked me when I stated Amiibo's were not the be all for their financials, and will taper off over time.
 
A

astrogamer

Member
Papacheeks said:
And people mocked me when I stated Amiibo's were not the be all for their financials, and will taper off over time.
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Not sure how amiibos are all that relevant to these changes. They seem on their predicted success track. The likely causes for the low profits is the 3DS, NX R&D costs and bad exchange rate changes
 
Papacheeks

Papacheeks

Banned
astrogamer said:
Not sure how amiibos are all that relevant to these changes. They seem on their predicted success track. The likely causes for the low profits is the 3DS, NX R&D costs and bad exchange rate changes
Click to expand...

True, but I would like to see their financials in the next couple of months and see how much Amiibo's are doing in relation to last year where they made up for decent amount of profit.
 
A

Anth0ny

Member
so about that nx

maybe you want to, you know

announce it to the public

show it off

get some excitement going

no?
 
V

Vena

Member
Papacheeks said:
And people mocked me when I stated Amiibo's were not the be all for their financials, and will taper off over time.
Click to expand...

Papacheeks said:
True, but I would like to see their financials in the next couple of months and see how much Amiibo's are doing in relation to last year where they made up for decent amount of profit.
Click to expand...

You keep moving the bar of your amiibo financials. Now its "decent", before it was "most" of their profit. This report has effectively nothing to do with amiibo, and shows just how much of their actual earnings is about their software/hardware.
 
L

LegendofLex

Member
Tatsumi Oga said:
Ah i see. So why are people now saying ''please be less excited'' and NX not coming this year? I don't get that.
Click to expand...

Because people seem to think that Nintendo's being quiet right now for reasons other than to try to milk as many sales out of this already dismal fiscal year as they can before they kill off their platforms with a successor.

Don't expect an NX announcement until April or May at the very earliest.
 
F

Father_Brain

Banned
Vena said:
Wrong year (CY2015 (from March 2015) into March 2016 is FY2016) and wrong quote.

FY2016 would, in fact, be the year in which you would expect them to be the least profitable/lowest revenue (though not this bad, and wouldn't have predicted yen trade changes) as development resources transitioned and projects ran out (and this is especially hurt by the fact that the 3DS (and WiiU) really didn't have a holiday "game" this year). FY2017 with hardware launches should pop up regardless of long term successes unless the launch is a total disaster.
Click to expand...

Kimishima has notably backed off somewhat from Iwata's oft-repeated promise of "Nintendo-like profits" for next FY. We can only speculate what that means for now, though I think NX will still launch that FY.
 
V

Vena

Member
Father_Brain said:
Kimishima has notably backed off somewhat from Iwata's oft-repeated promise of "Nintendo-like profits" for next FY. We can only speculate what that means for now, though I think NX will still launch that FY.
Click to expand...

I think thats perfectly normal. Iwata was always a big promiser but also generally strong figure. Kimishima is a new position, has considerably less power and clout than Iwata, and plans are liquid anyway.

I really don't expect some crazy surge.
 
Papacheeks

Papacheeks

Banned
Vena said:
You keep moving the bar of your amiibo financials. Now its "decent", before it was "most" of their profit. This report has effectively nothing to do with amiibo, and shows just how much of their actual earnings is about their software/hardware.
Click to expand...

You really don't know how to read? My previous post's acknowledge amiibo's and what they sold. But I also acknowledge that it will over time taper off since something like collectibles usually do.

And previously from a couple months ago, there was a earning report that showed at the time over a 8-9 month period how amiibo's sold.

I'll come back to this when I'm right and financials show a decent decrease in amiibo's.

My stance is they are solely being used as a buffer to offset other losses, like R&D.
 
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