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

[Soundwave]

NintendoPie said:

Soundwave said:

Yes and no.

They technically are up through three quarters in net income, but they are still forecasting an operating loss of $220 million for the full fiscal year.

Meaning their game business still is not technically profitable, the reason they will be able to break even (barely) this year is because of the yen shifting into a more positive position. Has nothing to do with their game division growing. 

Also they slashed forecasts for basically all their hardware and software quite significantly.

It's one of those "could've been worse" scenarios, but yeah, hopefully they are learning a lesson or two without getting burned too badly. The stock price is not likely to be pretty today in Japan.

Yeah, I noticed that their Operating Income was down. But that was really the only thing, everything else on that list was up and hopefully the OI will follow suit. 

And I noticed that they decreased their predictions. Some were pretty crazy in the first place.

Their projections are based largely I think on the 3DS and Wii U performing like the DS and Wii. I think they were hoping with more inventory the Wii U could keep up with the Wii for a little while at least, which was heavily supply constrained in 2006/2007.

What's actually probably happening is Nintendo is reverting back to the what they were when the pre-casual gaming craze bubble happened. So the Wii U/3DS are actually performing more like the GameCube and Game Boy Advance with that casual Nintendogs/Wii Sports/Brain Training bubble having popped.

Nintendo's basically gone back in a time warp to 2002. The 4 million shipped projection for Wii U for example is basically very much in line with the GameCube through its first March in 2002, which shipped 3.8 million I believe. Basically a wash, both are well below the Wii which shipped about 6 million in the same time frame (and was heavily supply constrained at that).