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superhippy420 on 29 January 2014
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czecherychestnut said:
sonicfan1373 said:
czecherychestnut said:
KingdomHeartsFan said:

I remember seeing another Nintendo Earnings report thread on this site like a week ago showing a loss...maybe I'm going crazy.


It would have been Nintendo's revised yearly projections thread, in which Nintendo revised their projections down for Wii U and 3DS and lowered their yearly results prediction from 55 billion yen to a -25 billion loss. 

The results in this thread are for the quarter, in which consoles sell 2-3x more than the rest of the year combined, meaning it was expected Nintendo would make a quarterly profit, but due to the previous quarterly losses (and the upcoming on) it will be a yearly loss.

But it appears that the results are compounded (April-December 2013) so it takes the loss of previous quarters into account. Furthermore, based on previous years results Q4 does not have a massive impact on their profits unless they are doing heavy R&D or paying large end of year taxes; so this does make me wonder about their end-of-year projection made on January 17.

But the net and operating profit numbers listed in the OP are for Q3 only, they aren't cumulative. Nintendo made an operating loss of ~$187million in Q2 and a $50 million operating loss the previous quarter, so basically Nintendo is currently even at the end of Q3. But sales are usually at their weakest in Q4, and you have to assume that Nintendo's development and general running costs are relatively constant (we have not heard of any large layoffs or studio shutdowns), therefore if revenue decreases in Q4 but costs remain broadly the same then they will lose money. 

If you want the cumulative results you can get them here. http://www.nintendo.co.jp/ir/pdf/2014/140129e.pdf

Note that the cumulative operating loss for 2013 is $1.5 billion YEN, or ~ $15 million US.  Cumulative net profit is ~$100 million. The financial report doesn't list individual Q3 results, but they've been calculated based on the previously reported earnings.


I guess we will have to wait and find out exactly how bad Q1 is for Nintendo.   Alot is riding on Donkey Kong to boost Wii U sales.  They should spend invest marketing $$$, and give it a strong push in the next 3 - 4 weeks.    Software sales are way down compared to this week in 2013, and that is with the next gen consoles out.