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Nintendo have not made an operating profit overall this generation.

Forums - Nintendo Discussion - Nintendo have not made an operating profit overall this generation.

bigtakilla said:
We still got another year, and Pokemon Go looks like it could be the most profitable thing that might have ever happened to Nintendo. Basically this thread is a little premature.

Unfortunately, Nintendo itself will barely see any profits from the game. Most profits go to Apple, Google, Niantic and the Pokemon company.



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etking said:
bigtakilla said:
We still got another year, and Pokemon Go looks like it could be the most profitable thing that might have ever happened to Nintendo. Basically this thread is a little premature.

Unfortunately, Nintendo itself will barely see any profits from the game. Most profits go to Apple, Google, Niantic and the Pokemon company.

Yeah, but Nintendo will also not lose any money on the game either. All revenue should be profit.



Cloudman said:
Well, it could have been worse. Didn't it take a couple of years before the PS3 became profitable? At least the 3DS helped deflect the losses.

Actually I'm pretty sure the PS3 lost quite a substantial amount of money overall, I don't think the profits it started turning later on actually made up there early losses. Don't have figures so I could be wrong.



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Barkley said:
Cloudman said:
Well, it could have been worse. Didn't it take a couple of years before the PS3 became profitable? At least the 3DS helped deflect the losses.

Actually I'm pretty sure the PS3 lost quite a substantial amount of money overall, I don't think the profits it started turning later on actually made up there early losses. Don't have figures so I could be wrong.

Yeah, I'm not certain either. That's just something I heard a couple of time on the internet.



 

              

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etking said:
bigtakilla said:
We still got another year, and Pokemon Go looks like it could be the most profitable thing that might have ever happened to Nintendo. Basically this thread is a little premature.

Unfortunately, Nintendo itself will barely see any profits from the game. Most profits go to Apple, Google, Niantic and the Pokemon company.

Nintendo might not see that much profit from the app, but Nintendo has made the Pokemon Go Plus device, though, and that's already selling out. I'm sure they'll be able to get profit out of that, as they don't have to share it with others. With the popularity of the app, this is bound to sell well and contribute to the profits of Nintendo.



 

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TheDarkBender said:
etking said:

Unfortunately, Nintendo itself will barely see any profits from the game. Most profits go to Apple, Google, Niantic and the Pokemon company.

Nintendo might not see that much profit from the app, but Nintendo has made the Pokemon Go Plus device, though, and that's already selling out. I'm sure they'll be able to get profit out of that, as they don't have to share it with others. With the popularity of the app, this is bound to sell well and contribute to the profits of Nintendo.

Add in the Fire Emblem and Animal Crossing games set to release by the end of the year. This could be a huge turnaround as far as profits go for Nintendo. 



Miyamotoo said:
RolStoppable said:
The 3DS was responsible for the first fiscal year with an operating loss (due to an early significant price cut) and it took a while until 3DS hardware returned to profitability. Wii U hardware was sold at a loss from the start, so it didn't help Nintendo's bottom line.

As for the argument that Nintendo should keep making hardware because they are still profitable despite a low volume of sales, that makes a whole lot more sense when losses for selling hardware do not apply anymore. That's what holds largely true for the latter years of this generation.

But the bigger reason for Nintendo to keep making hardware is that the potential profits from such a business model are far greater than going third party. Regarding the losses this generation, a company like Nintendo which has several billions of cash reserves easily survives it. The losses would have had to be multiple times higher in order to humor a legitimate discussion about whether or not Nintendo should go third party. As it is, it was and is nothing more than wishful thinking of people who do not want to buy Nintendo hardware for whatever reason.

Actualy Wii U was sold at loss only in 1st year or so.

Fact is there will not lose any money this gen, they have operating loss yes, but overall they will have solid profit from this gen.

This is false. They never announced Wii U hardware was being sold at a profit, that is a misconception from 2014 and it baffles me that people still believe that to be the case. What Nintendo actually said was that Wii U hardware wouldn't incur any more losses for that period, because they were sitting on a lot of unsold Wii U inventory after they shipped less than they expected. Since this also meant they would have to manufacture less Wii U units than expected, the revenue from already manufactured units (where the loss was incurred in an earlier period) would exceed the loss from manufacturing new Wii U units. Hardware still had a negative margin.



OK? It would take a ridiculous amount of years with losses of that amount to make a dent in Nintendo.



This doesn't tell the whole story. Nintendo invested a lot of money into their new research and developement studio in japan, started new studios, nx r and d ect. Plus when you add in the money they are going to make this year they may very well have broken even during the coarse of the wiiu gen. 



etking said:
bigtakilla said:
We still got another year, and Pokemon Go looks like it could be the most profitable thing that might have ever happened to Nintendo. Basically this thread is a little premature.

Unfortunately, Nintendo itself will barely see any profits from the game. Most profits go to Apple, Google, Niantic and the Pokemon company.

There was an article stating that but the article was untrue.  The article didn't even realise that Nintendo owned the IP. 

When you add the money Nintendo will make off Pokemon Go and the other mobile games they will release this year and the sale of the Seattle Mariners they may very well have broken even.