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

famousringo on 21 December 2007
RolStoppable said:
superchunk said:
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.

But a smiley gives it away too easy. What's your total minus count so far on this forum? Something in the millions?

Happy holidays and see you again in two weeks.


He doesn't really wish you a happy holiday. He's being sarcastic.

Don't believe me? Look at the smileys... 



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

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rocketpig on 21 December 2007

Considering that apparently everyone not named Microsoft posted a loss last quarter, it isn't surprising that the Apple Inc. of the videogame industry is more profitable than everyone else combined.

It makes one wonder how sustainable this industry is long-term. It also makes me wonder how many pissed off developers there are in the world with PS3/PSP games in the works right now.




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Non Sequor on 21 December 2007
eugene said:
Well Bod, thats only if you continually look at the glass half empty. If they did not buy out Bioware and Pandemic, they would probably have posted a near billion dollar profit last quarter. The loss was something they anticipated on and it was a very good investment. Good investments typically pay off. As the installed base of current generations rise, they will only benefit more. They are profiting greatly still this generation as will most the other major publishers.

It doesn't work that way. Money spent acquiring assets (capital expenditures) doesn't show up on the quarterly income statements because the asset is assumed to be worth as much as it cost to acquire. Instead, the cost shows up over time as amortization or depreciation. If the asset later turns out to be worth less than it's book value it can also be written down and that loss will show up in a later income statement.



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Gamerace on 21 December 2007
rocketpig said:

It makes one wonder how sustainable this industry is long-term. It also makes me wonder how many pissed off developers there are in the world with PS3/PSP games in the works right now.

Good point.  Let's look at Konami and SE where with MSG4 and FFXIII.  I expect both games to do very well, and both to make a profit... but... Both series have seen declining returns on sequels, both will be contending with a much lower user base, so at the end of the day, those studios will have to be saying to themselves:

Well we spent $XXm in development and made Xm in profit. However for XXm we could have made 2-4 AAA Wii games and had each make Xm profit which would have been 2-4 times more money in the bank now.



 

NJ5 on 21 December 2007

The real problem with many software companies' relationship with the Wii is that they think only party games sell well. If they took a good look at sales figures, they'd realize that good software from almost any genre can sell well on the Wii.



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

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tokilamockingbrd on 21 December 2007

Soon enough companies will realize that if there crappy games sell 500k on Wii then maybe if they take the time produce a AAA title they will sell MILLIONS with less Dev cost... But then again companies like Take-Two, EA, and Konami... suck...



psn- tokila

add me, the more the merrier.

turin on 21 December 2007

Oh that little company that started selling cards (hanafuda), and now with only like 3000 employees can make that much profit. They're great at games and business.

 



tokilamockingbrd on 21 December 2007

Nintendo only has 3,000 employees?
Wow they have to have the highest profit per employee... maybe google is Similar..



psn- tokila

add me, the more the merrier.

turin on 21 December 2007
tokilamockingbrd said:
Nintendo only has 3,000 employees?
Wow they have to have the highest profit per employee... maybe google is Similar..

Yeah, that's huge.

Just found this:

http://money.cnn.com/magazines/fortune/fortune_archive/2007/06/11/100083454/?postversion=2007053109l

The average per employee last year in terms of revenue:

Nintendo $2,500,000

Google    $ 994,000

Microsoft $ 624,000

 

Now the average per employee  last year in terms of profit:

Nintendo $ 442,000

Google    $ 288,000

Microsoft $ 177,000

 

And Nintendo had aprox. 3400 employees (until may 2007)



turin on 22 December 2007

Since this year Nintendo is getting more profit, that average number should raise a lot