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Forums - Nintendo Discussion - 3DS on pace to pass first years sales goal!

megaman79 on 23 December 2011

Yep, and the stock is in the toilet.

Can't wait till Samsung does serious damage to Apple, that black hole investor madness has got to go.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

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Galaki on 23 December 2011

Well, stock rely on the perception of its market value.
Apple is seen as indestructible hence the crazy inflation.



Pre-order limited edition Blue Slime Condoms

Seece on 23 December 2011
kowenicki said:
So they are passing a reduced forecast on a massively reduced price.....

Not much of an achievement really.

What was the original forecast at the old price?

It was. And I agree, in times like these they should have cut to $199 not $169 or whatever absurd price it is. At $199 it's likely they'd be profiting/flat. They wouldn't sell quite as much as 16m, but the SW this xmas still would have shifted a lot of units.



 

acdcste on 23 December 2011

Whatever the price drop, the sales so far have been impressive. Looks like it will be around 14m by end of 2011.



Seece on 23 December 2011
kowenicki said:
Seece said:
kowenicki said:
So they are passing a reduced forecast on a massively reduced price.....

Not much of an achievement really.

What was the original forecast at the old price?

It was. And I agree, in times like these they should have cut to $199 not $169 or whatever absurd price it is. At $199 it's likely they'd be profiting/flat. They wouldn't sell quite as much as 16m, but the SW this xmas still would have shifted a lot of units.


It soog that the 3DS has taken off to an extentin adoption, but I dont see how this is anything other than a disater from a financial persepctive.

Given that we know the 3DS was sold at a loss at its launch price the losses on this must now be huge.

The extra 4 million at $169 gives us $680m inrevenue and zero profits, massive losses on hardware (the loss will be the price cut plus some more).  You could easily summise that the loss on the 4m consoles over the period is around $360m ($90 loss on each one), so revenue of $680m for a loss of $360m... madness.

The extra 4 million at $249 would have given $1bn in revenue and still zero profits, but only small losses on hardware.

 

I'm not sure they were making a loss at launch? Might be confusing that with Vita. As far as I know they were heavily profiting on the $250 price tag, which is why I think perhaps $199 is the magic mark at which they'd break even.



 

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Galaki on 23 December 2011
Seece said:

they were heavily profiting on the $250 price tag





Pre-order limited edition Blue Slime Condoms

puffy on 23 December 2011
kowenicki said:
Seece said:
kowenicki said:
So they are passing a reduced forecast on a massively reduced price.....

Not much of an achievement really.

What was the original forecast at the old price?

It was. And I agree, in times like these they should have cut to $199 not $169 or whatever absurd price it is. At $199 it's likely they'd be profiting/flat. They wouldn't sell quite as much as 16m, but the SW this xmas still would have shifted a lot of units.


It soog that the 3DS has taken off to an extentin adoption, but I dont see how this is anything other than a disater from a financial persepctive.

Given that we know the 3DS was sold at a loss at its launch price the losses on this must now be huge.

The extra 4 million at $169 gives us $680m inrevenue and zero profits, massive losses on hardware (the loss will be the price cut plus some more).  You could easily summise that the loss on the 4m consoles over the period is around $360m ($90 loss on each one), so revenue of $680m for a loss of $360m... madness.

The extra 4 million at $249 would have given $1bn in revenue and still zero profits, but only small losses on hardware.

EDIT*  forget all that.... too early in the morning.


They're making a slight loss on hardware now, they were profiting hugely at launch.



 

megaman79 on 23 December 2011

Nintendo made a smart decison to cut price and, although i will agree that they prob. cut it too much, their market share coming into next year will hopefully reap rewards in terms of exclusives from 3rd parties.

Yes, Vita is getting alot of support, but id be quite worried when you're looking down the barrel of a 10 million advantage for install base.

Interesting side note - IPad sales apparently suffering a decline. Economists suggesting its the cheaper competition from Kindle thats to blame.

http://news.investors.com/Article/594292/201112091400/apple-ipad-sales-cut-kindle-fire-blamed.htm

Price matters.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

Paul on 24 December 2011

The 3DS will be over 14 million after this week and probably over 15 million by the end of the year. Nintendo will easily beat the 16 million forecast for the fiscal.



megaman79 on 24 December 2011
Paul said:
The 3DS will be over 14 million after this week and probably over 15 million by the end of the year. Nintendo will easily beat the 16 million forecast for the fiscal.


So thats 20 million total? Since they shipped 4 million last fy.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.