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Forums - Nintendo Discussion - Nintendo Rakes It In... But For How Long?

First off, Nintendo is a very conservative company and are probably not going to forecast a 25% increase in operating revenue at the begining of the year; they're most likely going to start at 5%, increase their projection to 10% after Q1, increase their projection to 15% after Q2, increase their projection to 20% after Q3, and report a 25% increase in operation revenue at their fiscal year end.

On top of this they're anticipating quite a bit of growth even though they're selling about as much Nintendo DS and Wii hardware as any console has ever sold, and their previous year had the release of (what will probably be) several of Nintendo's best  selling games ever; as well as slow and steady sales from games released over the past several years.



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hmm. So a weak economy will cause more people to buy the more expensive machine (PS3) over the cheaper machine (Wii)?

umm, what??



Tuulikk said:
Some of what Nintendo loses at a weak U.S. Dollar, they gain at the Euro and the other currencies in Europe as we probobly already overpaid for our games and consoles compared to those who live in U.S before the fall of Dollar.

In Sweden a fullpriced game probably cost us almost as much as 2 U.S. fullpriced games, not counting that a part of the difference is VAT. Same, but not as bad goes for consoles. Probably similar situation around Europe.

And with ramped up production of Wii consoles, mega sellers such as Wii Play, Super Mario Galaxy, Super Smash Bros Brawl, Mario Kart Wii and Wii Fit plus whatever might come after summer, it will only get better and maybe third party situation gets better to.

 Keep in mind that Nintendo is a Japanese company based in Japan and not an American company based in America.



 

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whatever said:
hmm. So a weak economy will cause more people to buy the more expensive machine (PS3) over the cheaper machine (Wii)?

umm, what??

 Is the same I ask me



Lol ok,

1. DS moves it's software, make no have about that - they trend may glimpse as otherwise, but the numbers don't, the market for the DS is just getting saturated thats all, it's easy to hit a million when you have nothing competeing with you.

2. DS doesn't have to prove itself, the only thing left for it to do is to reach saturation in Others and US, at that point who knows what the numbers will be.

3. Nintendo as many pointed out have been the only company to not sell the most but still make a profit. I'm sure they can handle an economy gone side ways.

The only ones truely hurt by the alleged diminishing of the dollars value is Microsoft as their largest market is the US.

Neither bits of logic make sense, what does make sense is that this industry would need a luger to the heart to get it to slow down from a regression.



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It's very hard to take an article writer seriously when they don't even understand the basic workings of the industry they're studying (let alone the basic workings of the economy). The stupidest mistakes they made were the statement that entertainment budgets drop during hard economic times (quite the contrary; the more affordable entertainment mediums go up in demand during a recession), and the declaration that the PS3 might somehow catch up with the Wii this year (that would require the Wii to stop selling entirely and the PS3 to start selling more than twice as much as the Wii is now; not gonna happen).

All in all, this strikes me as yet another uninformed article written by somebody who just wants to get some attention, no matter how negative it is. This drive for putting out articles that are spiteful over insightful just to get waves of (negative) feedback is getting old...



Sky Render - Sanity is for the weak.

So essentially until the Wii's Install base is 75~82 million versus the PS3's at that point's 32~36 million 'catch-up' articles will continue to defile my internet.

These infidels must be silenced!

amiriteguys?

his opinion, it's just getting harder to tell opinion pieces from journalism, and if it's hard for the read that probably means it's harder on the writer.



I'm Unamerica and you can too.

The Official Huge Monster Hunter Thread: 



The Hunt Begins 4/20/2010 =D

For those who say nintendo always profit, that may be true but to a shareholder you are wanting your company to increase profits year on year.

I think the problem with nintendo is that they are near their peak, they cant grow that much more then they already are in the video game business.

If DS has reached saturation and sales slow down then wii will have to make up for that lost revenue/profit. That is why you can expect profit to be lower or the same as previously, there is simply not much room to grow.

Nintendo is quite unpredictable though so they might have some aces up their sleeves but only time will tell.



lultor said:
For those who say nintendo always profit, that may be true but to a shareholder you are wanting your company to increase profits year on year.

I think the problem with nintendo is that they are near their peak, they cant grow that much more then they already are in the video game business.

If DS has reached saturation and sales slow down then wii will have to make up for that lost revenue/profit. That is why you can expect profit to be lower or the same as previously, there is simply not much room to grow.

Nintendo is quite unpredictable though so they might have some aces up their sleeves but only time will tell.

I'm pretty sure Nintendo hasn't hit their peak profits, although I'm also pretty sure the growth in their profits in the near future will not be as large as it has been over the past couple of years.

 



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