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Forums - Nintendo - How much money do they actually print?

Viper1 on 01 May 2010

Indeed you are correct but notice my initial point about production capacity. They can only sell what Foxconn can manufacture and if they only have capacity for 25 million and they can sell 22 million at the current price, it's a very poor business move to cut the price.

And ramping up production takes months and is a slow process.



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Weegee on 01 May 2010

I just figured out that nintendo is the only compagnie without negative year



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andremop on 01 May 2010
Pyro as Bill said:
Viper1 said:
Cutting the price, releasing a new console and moneyhatting would all reduce profits.

Consider this: Say production capacity is 25 million for the fiscal year.
If they sell 22 million at the current price of $200 with a $50 profit margin = $1.1 billion
If they sell all 25 million at the reduce price of $160 with a $10 profit margin = $250 million

At $160, they'd have to sell 110 million Wii's in one year to make the same profit as 22 million Wii's at $200.

Launching a new console is many times either sold for a loss or close to breaking even. The longer a console is out, the higher the profit margin thanks to reduced manufacturing and component costs.

Moneyhatting publishers millions just to get millions is a zero sum gain.

OK then. They need to improve the online, add a HD upscaler and make more hardcore games.

Nintendo can't expect Wii Fit Plus, Wii Sports Resort, NSMB Wii, Mario Galaxy 2, Zelda Wii, Metroid, Black Wii, Vitality Sensor, 3DS plus any other suprises to match last years profits.

Why not? There's some heavy hitters in that list - actually they're all heavy hitters.



xxmob on 01 May 2010

wow they have a mkt cap of 47.49 billion

thats amazingly good

http://www.google.com/finance?q=OTC%3ANTDOY




radishhead on 02 May 2010

@ xxmob - Those numbers look very impressive

@Pyro as Bill - How so? I think they can exceed last year's profits



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Viper1 on 02 May 2010
Pyro as Bill said:
Viper1 said:
Cutting the price, releasing a new console and moneyhatting would all reduce profits.

Consider this: Say production capacity is 25 million for the fiscal year.
If they sell 22 million at the current price of $200 with a $50 profit margin = $1.1 billion
If they sell all 25 million at the reduce price of $160 with a $10 profit margin = $250 million

At $160, they'd have to sell 110 million Wii's in one year to make the same profit as 22 million Wii's at $200.

Launching a new console is many times either sold for a loss or close to breaking even. The longer a console is out, the higher the profit margin thanks to reduced manufacturing and component costs.

Moneyhatting publishers millions just to get millions is a zero sum gain.

OK then. They need to improve the online, add a HD upscaler and make more hardcore games.

Nintendo can't expect Wii Fit Plus, Wii Sports Resort, NSMB Wii, Mario Galaxy 2, Zelda Wii, Metroid, Black Wii, Vitality Sensor, 3DS plus any other suprises to match last years profits.

If you really think that's what they need to boost profits even further than you've not grasped the concepts of Disruption and Blue Ocean Strategy.



The rEVOLution is not being televised

Bobbuffalo on 02 May 2010
Pyro as Bill said:
Viper1 said:
Cutting the price, releasing a new console and moneyhatting would all reduce profits.

Consider this: Say production capacity is 25 million for the fiscal year.
If they sell 22 million at the current price of $200 with a $50 profit margin = $1.1 billion
If they sell all 25 million at the reduce price of $160 with a $10 profit margin = $250 million

At $160, they'd have to sell 110 million Wii's in one year to make the same profit as 22 million Wii's at $200.

Launching a new console is many times either sold for a loss or close to breaking even. The longer a console is out, the higher the profit margin thanks to reduced manufacturing and component costs.

Moneyhatting publishers millions just to get millions is a zero sum gain.

OK then. They need to improve the online, add a HD upscaler and make more hardcore games.

No they don't.



Pyro as Bill on 02 May 2010

Just kidding guys.



Nov 2016 - NES outsells PS1 (JP)

Don't Play Stationary 4 ever. Switch!

Viper1 on 02 May 2010
Pyro as Bill said:
Just kidding guys.

haha, ok.

 

Next time, use Pathter tags:

[pachter]HD Wii, core games, no Vitality Sensor...[/pachter]



The rEVOLution is not being televised

CitizenOfVerona on 02 May 2010

So? Nintendo is, and always has been, dooooomed. No amount of facts can change that as teh hardcorez people has spoken.

*sarcasm*