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Forums - Sales - Nintendo's profits compared to other companies

Nintendo did make more profit than Sony last fiscal year.



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Dam then nintendo is going to be amazingly rich!!

Making the same amount of profit as sony wow!



 

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RolStoppable said:
We shouldn't forget that Nintendo has an unfair advantage. They make their games solely for the DS and the Wii.

How is that an unfair advantage?

Lets take EA as an example. They put games on 6 consoles and PC/MAC that's 8 venues for thier games. Sure they have to pay licensing, but, the coding for these games is greatly watered down since they only actualy code for 2 or 3 main systems, then port the rest over. Considerable less time needed.

Basically the only thing Nintendo is gaining is licensing fees. However, that is far outweighed by a much smaller user base to try and sell thier product on. Sure, right now DS and Wii are the kings, but, they missed the 100m userbases of PS1 and PS2, on top of that they have always missed the massive PC/MAC base.

I would not think of Nintendo being stuck to only Nintendo hardware as an advantage.



superchunk said:
RolStoppable said:
We shouldn't forget that Nintendo has an unfair advantage. They make their games solely for the DS and the Wii.

How is that an unfair advantage?


Is it true that most Americans don't understand sarcasm? ;)

 



My Mario Kart Wii friend code: 2707-1866-0957

kitler53 said:
HappySqurriel said:

If you took Nintendo out of the picture, added up all of the profits and all of the losses for all of the other companies in the industry, I'm not too sure the industry would turn a profit overall ...

 


lol, there is a good chance that is true. i just want to point out that nintendo was predicting this would happen for years. everyone said nintendo was crazy, the gaming industry is doing great. in the end, nintedo was right. got to love hindsight. xD


Oh Nintendo. It's reasons like this (and Game_boy's summary of Nintendo's business model) that make me love you.



There is no such thing as a console war. This is the first step to game design.

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leo-j said:
Dam then nintendo is going to be amazingly rich!!

Making the same amount of profit as sony wow!

I realize you're being sarcastic but in F2007 Nintendo made 174 billion yen in profit off of 966 billion yen in revenues, in contrast Sony made 126 billion yen in profit off of 8,295 Billion yen in revenues. Basically this works out to Nintendo making 18% profit and Sony making 1.5% profit ...

 



NJ5 said:
superchunk said:
RolStoppable said:
We shouldn't forget that Nintendo has an unfair advantage. They make their games solely for the DS and the Wii.

How is that an unfair advantage?


Is it true that most Americans don't understand sarcasm? ;)

 


 Oh, well if it was sarcasm then -1 me. Its kinda hard to tell on a forum. Need to add a smiley or something. jeebus.



Nintendo is the third most valuable Japanese company in terms of stocks. In 2006 they made about 1.1 Billion USD while for comparison Sony made 406 million and Microsoft lost 850 million on their gaming devisions. This is incredible bc the GCN had only 13.5% of the market then and that was before the DS had even become a titan as it is now.



"Like you know"

kitler53 said:
HappySqurriel said:

If you took Nintendo out of the picture, added up all of the profits and all of the losses for all of the other companies in the industry, I'm not too sure the industry would turn a profit overall ...

 


 lol, there is a good chance that is true.   i just want to point out that nintendo was predicting this would happen for years.  everyone said nintendo was crazy, the gaming industry is doing great.  in the end, nintedo was right.  got to love hindsight. xD


I wouldn't say that.  There was a TON of commentary about this problem during the last generation.  It was well regconized and bitched about.  Nintendo was the only company (and Majesco) to actually have the balls to go in a completely different direction and due something about it though.



 

leo-j said:
Dam then nintendo is going to be amazingly rich!!

Making the same amount of profit as sony wow!

 People tend to forget that Nintendo also make other forms of games

 Last gen they generated a ridiculous amount of revenue from a global craze called Pokemon.

Any company that can make a picture card that cost less than a cent to produce and sell it for 20 cents plus wont be going cap in hand to the bank anytime soon.

For Nintendo, read financially shrewd beyond belief.