Nintendo 3rd Quarter Results (Oct-Dec) - Profit of over 450 million US

[Mnementh]

Train wreck said:

Mnementh said:

Train wreck said:

 

Popular opinion is that a company dealing in consumer electronics should post a profit during the biggest retail season of the year.  Nintendo was only able to make 250 million with high 3DS, DS and Wii shipments and high software shipments.

This holiday season, the DS was heavily discounted and Wii had a price cut and total shipments are down 50-60%, along with ds and wii software.  3DS is flat year on year and no major releases in the west (and the 3DS and XL were heavily discounted) and the Wii U has been a debacle.  I will be surprised if Nintendo post any operating income this quarter (and that would only come because of favorable exchange rates, which I think will be a small catalyst)

Your senseless Nintenod-aversion blinds you in making an objective look at the state.

Heavily discounted - yes (as not all consumer-devices are heavily discounted around the holidays). But the discounts are made by retailers, so they don't affect Nintendo. Only official price-cuts have effect, and I don't think Nintendo has any incentive to sell old-gen-devices (DS and Wii) at a loss and 3DS is profitable since fall.

And WiiU has been a debacle? Not in the timeframe we look at. It sold around 80% Wii-launch in Nov-Dec. Hardly a debacle. After christmas it started dropping. Last week of december was only decent and starting January it dropped below what PS3 and X360 sold in the comparable timeframe (look here: http://gamrconnect.vgchartz.com/thread.php?id=152379&page=1# ). But we talk about the quarter Oct-Dec, so this bad numbers are not included in that (they will in next quarter). That said - the good initial sales of the WiiU could be a problem for the profit, because it was sold at a loss.

It seems with Nintendo doing as bad as it has been doing lately, it has clouded the logic of many people here, which is understandable.

Ill keep it simple to a series of yes or no questions so you can get a better idea of where im coming from.  Nintendo still gets a majority of its operating income from the DS and the Wii so lets break down last year and see if you think this year is going to be different. Note that nintendo officially dropped the price of the DSi and DSi XL on may 10 and the wii on October 15 (the Wii from 149 to 129 the DSi from 149 to 99 and the XL from 169 to 129), so less money from each sale.

These are from October 1 to December 31:

Wii shipped 5.61m units last year, do you think they shipped more this year?

DS shippments were 4.64m, do you think they shipped more this year?

Wii software shipped 53m units last year, do you think they shipped more this year?

DS software shipment totaled 23m last year, do you think they shipped more this year?

3DS shipped 8.36m in Q3 last year, do you think they shipped more this year?

3DS shipped 28m units of software, do you think they shipped more this year?

Nintendo mention that the Wii U will be sold at a loss in all territories (which is a contrast to the Wii which was profitable out the gate in all three major territories) and was on sale for 6 of the 13 weeks in the quarter, for the US at least, which is Nintendo biggest market.

250 million dollars is not that much for a company selling as much as it did last year and I'm sure you are finding yourself saying "NO" to the questions above more so than "YES".

Sorry, I never said Nintendo would post a profit (although they probably do, because of 3DS + games). But in any case, even if they profit, it will not be very big. That I never doubted. But the arguments in your first post were illogical. Now you bring completely different arguments. Your arguments in the previous post included bad sales of the WiiU (the sales were not bad in the quarter we look at and  as it is sold at a loss, the more WiiU are sold, the higher the loss). And you argumented, that the discounts given by retailers would influence the profit of Nintendo.. Nice that my post was able to bring you to reason.