Last year, contrary to popular opinion, from October to December of 2011, Nintendo posted profits of 250 million and doing so without the 3DS being profitable. Now, 3rd quarter has officially passed and whether Nintendo is profitable will be announced January 25th.
I believe Nintendo will be profitable this quarter as well. The 3DS hardware is no longer being sold at a loss and current exchange rates are favourable.
As a result, third quarter profitabily should offset the loses incured during the first two quarters (331 million). Nonetheless, I'm still a bit on edge though for the remainder of the fiscal year ending in March 2013 (see below):
Pros:
- Nintendo predicted 50.5 million Wii software sales by March 2013 - Sold over 55 million software sold as of December 22, 2012 according to VGChartz data
- Nintendo predicted 37 million DS software sales by March 2013 - Sold over 38 million software sold as of December 22, 2012 according to VGChartz data
- Nintendo predicted 2.5 million DS hardware sales by March 2013 - Sold 2.5 hardware sold as of December 22, 2012 according to VGChartz data
- Growth in 3DS (Thanks in large part to Japan)
Cons:
- Will not be able to achieve it's projected 5 million Wii hardware sales - 3.1 million as of December 22, 2012 according to VGChartz data
(will be revised to 4)
- Will not be able to achieve it's projected 17 million 3DS hardware sales - 10.5 million as of December 22, 2012 according to VGChartz data
(will be revised to 15)
- Will not be able to achieve it's projected 5.5 million Wii U hardware sales - 2.2 million as of December 22, 2012 according to VGChartz data
(will be revised to 4.5-5)
Though Nintendo will not reach most of its year-end targets, the current exchange rates of 87 US and 115 EUR will hopefully offer them the breathing space needed to be profitable. Just to put it in perspective, Toyota said that for each 1 yen US difference they either lose or gain 350 million.
What do you guys think of Nintendo's 2013 prospects? Are they positive and will they be profitable? I'd like to hear your thoughts.
http://www.nintendo.co.jp/ir/pdf/2012/120427e.pdf
