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Forums - Nintendo Discussion - Nintendo Q1 - $221m loss on of revenue $1.08bn. Shipments: 1.86m 3DS, 710k Wii, 540k DS

DanneSandin on 24 July 2012
Kynes said:

People don't seem to get the importance of the exchange rate. Please took a look at this graph:

 

Sony and Nintendo get half the yens than 4 years ago from the same console sold at the same price. You add the price cuts, and now they get less than a third of the money they got four years ago from the same console, as Kowenicki already said in this thread talking about past price cuts. Japanese companies are going to have a really hard time in the near future.

Thanks for the graph and the explanasion! It really put things in perspective!!



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Aielyn on 24 July 2012
kowenicki said:
This has all got a bit off topic hasn't it. No predictions for the numbers from anyone?

I'm far more interested in the "upcoming software" section that they include with each quarter's financials. The numbers are boring by comparison.

So here's my prediction, regarding upcoming software:

1. NSMB U, Lego City Undercover, Nintendo Land, Wii Fit U, and Ninja Gaiden 3 confirmed for "Launch" - meaning, day 1.

2. Remaining first-party and first-party-published titles listed as "Holiday" - meaning, out by the end of the year.

3. New (at least, new to Nintendo's official statements) third-party game confirmations include Black Ops II, Madden NFL, Battlefield U (Wii U Battlefield title of some sort) or Medal of Honour: Warfighter, and one Capcom title.

I actually wonder if Nintendo might not be planning another Nintendo Direct in the next couple of weeks. It's probably right about time for information about their online system, confirmation/trailers of certain games (like Black Ops II, Ghost Recon Online, etc), and some form of tour announcements to start the hyping process towards launch.



Nintendogamer on 24 July 2012

Shouldn't that be Q2? also Wii - 0.77M, 3DS - 1.3M, DS - 0.5M.



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Aielyn on 24 July 2012
Nintendogamer said:
Shouldn't that be Q2? also Wii - 0.77M, 3DS - 1.3M, DS - 0.5M.

Financial years in Japan start in April. So it's Q1 of the current 2012-2013 financial year.



kitler53 on 24 July 2012
Kynes said:

People don't seem to get the importance of the exchange rate. Please took a look at this graph:

 

Sony and Nintendo get half the yens than 4 years ago from the same console sold at the same price. You add the price cuts, and now they get less than a third of the money they got four years ago from the same console, as Kowenicki already said in this thread talking about past price cuts. Japanese companies are going to have a really hard time in the near future.

now that's a good post, i knew about the yen issue but that graph really puts it into a perspective that is easy to grasp.  

damn..



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kitler53 on 24 July 2012
kowenicki said:
kitler53 said:
Kynes said:

People don't seem to get the importance of the exchange rate. Please took a look at this graph:

 

...

Sony and Nintendo get half the yens than 4 years ago from the same console sold at the same price. You add the price cuts, and now they get less than a third of the money they got four years ago from the same console, as Kowenicki already said in this thread talking about past price cuts. Japanese companies are going to have a really hard time in the near future.

now that's a good post, i knew about the yen issue but that graph really puts it into a perspective that is easy to grasp.  

damn..


Similar for the Dollar/Yen....

...

 

I know I was labelled as some kind of doom merchant in the past... but I was only saying what I saw and what was pretty obvious to anyone that cared to look.

i'm not sure i'd say doom merchant.  i just think most of the time you speak in tongues.  i guess it is partly my fault for not being more educated but i generally can't follow your analysis.  it is pretty clear though that japan is fucked and sony/nintendo are no exceptions.   i hope they can pull though but i'm not really expecting it.



Kynes on 24 July 2012

The problem is most users don't want to know, or don't care, about these things. They only want their console of preference to sell the most, without knowing the implications of a price cut.



Kynes on 24 July 2012
kowenicki said:
kitler53 said:
Kynes said:

People don't seem to get the importance of the exchange rate. Please took a look at this graph:

 

Sony and Nintendo get half the yens than 4 years ago from the same console sold at the same price. You add the price cuts, and now they get less than a third of the money they got four years ago from the same console, as Kowenicki already said in this thread talking about past price cuts. Japanese companies are going to have a really hard time in the near future.

now that's a good post, i knew about the yen issue but that graph really puts it into a perspective that is easy to grasp.  

damn..


Similar for the Dollar/Yen....

 

I know I was labelled as some kind of doom merchant in the past... but I was only saying what I saw and what was pretty obvious to anyone that cared to look.

Nintendo is "lucky" in this aspect, as they don't have a huge market in Europe and smaller USA one, as Sony have, they used to sell lots on every market. The Euro depreciation is bigger than the Dollar one, one goes from 170 to 95, the other from 120 to 75. We can say that while Nintendo is hurt, Sony is bleeding thanks to the exchange rates. Europe domination has been a curse in this generation.



gumby_trucker on 24 July 2012
Kynes said:
The problem is most users don't want to know, or don't care, about these things. They only want their console of preference to sell the most, without knowing the implications of a price cut.

The most pressing matter at hand here is the launch price of Wii U, isn't it?

If I understood Nintendo's financial breafing correctly they have lost what amounts to $355 million (27.7 billion yen) due to changes in the exchange rate.

This is a horrendous amount of money but not exactly threatening to the company, at least not yet.



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Kynes on 24 July 2012
gumby_trucker said:
Kynes said:
The problem is most users don't want to know, or don't care, about these things. They only want their console of preference to sell the most, without knowing the implications of a price cut.

The most pressing matter at hand here is the launch price of Wii U, isn't it?

If I understood Nintendo's financial breafing correctly they have lost what amounts to $355 million (27.7 billion yen) due to changes in the exchange rate.

This is a horrendous amount of money but not exactly threatening to the company, at least not yet.


That number is changes in the exchange rate to what they predicted, if I'm not wrong, so if they predicted for the year an exchange of 110, but the exchange was 90, the income difference is 355 million US$. I think most of the huge losses Nintendo had last fiscal year come from the exchange rate, and the 3DS price cut, as they had to sell them at a loss. Look at the cost of Nintendo consoles and games in Japan, they have compensated the losses outside Japan with good revenue in their homeland, where they don't have problems with the exchange rates.

It's not impossible to see here a Wii U launch cost in EUR/US$ that isn't as we used to see, with a cost of 25000 JPY, but 300 US$/€, not 250.