| Vinniegambini said: I will :) |
Great. Fingers Crossed that they do well.
| Vinniegambini said: I will :) |
Great. Fingers Crossed that they do well.
They'll make a profit, for sure.
fingers crossed.
if they make a profit as a company, it will be the only one on the videogame industry to do it 1 year after posting losses! everything Wii and DS related are profits, while the 3DS should be making the same but for less, the sum of thos should keep the Wii U to at least avoid losses. add the yen exchange rate??? i want to know how it ends!!!!
They should make a sizable profit for that quarter if they were making money even last year with a worse yen situation and a money losing 3DS.
NSMB2 and Animal Crossing have sold well for them. Wii U is sorta negligable, but the Wii and DS also continue to sell decent during the holiday season, that's just printing money for Nintendo.
That said, I think they are also going to reveal that shipment forecasts for both the 3DS and especially the Wii U are going to be slashed and perhaps their fiscal year end target may not be met.
| Train wreck said: Popular opinion is that a company dealing in consumer electronics should post a profit during the biggest retail season of the year. Nintendo was only able to make 250 million with high 3DS, DS and Wii shipments and high software shipments. This holiday season, the DS was heavily discounted and Wii had a price cut and total shipments are down 50-60%, along with ds and wii software. 3DS is flat year on year and no major releases in the west (and the 3DS and XL were heavily discounted) and the Wii U has been a debacle. I will be surprised if Nintendo post any operating income this quarter (and that would only come because of favorable exchange rates, which I think will be a small catalyst) |
Your senseless Nintenod-aversion blinds you in making an objective look at the state.
Heavily discounted - yes (as not all consumer-devices are heavily discounted around the holidays). But the discounts are made by retailers, so they don't affect Nintendo. Only official price-cuts have effect, and I don't think Nintendo has any incentive to sell old-gen-devices (DS and Wii) at a loss and 3DS is profitable since fall.
And WiiU has been a debacle? Not in the timeframe we look at. It sold around 80% Wii-launch in Nov-Dec. Hardly a debacle. After christmas it started dropping. Last week of december was only decent and starting January it dropped below what PS3 and X360 sold in the comparable timeframe (look here: http://gamrconnect.vgchartz.com/thread.php?id=152379&page=1# ). But we talk about the quarter Oct-Dec, so this bad numbers are not included in that (they will in next quarter). That said - the good initial sales of the WiiU could be a problem for the profit, because it was sold at a loss.
Just for those of you who actually follows Nintendo as a company (I have lost any interest in reading most comments on this site after seeing so little knowledge but so strong of opinion just maybe one too many times). The way Nintendo keeps its books, if they have a profit, they book the profit when sold. But if they have a loss, they book the loss when the product is made.
So the actual shipment, retail sales of Wii Us will likely have no impact 9/12-12/12 due to the fact that Nintendo was producing units at full capacity. However many they could manafacture, they did, and the loss was anticipated as they were made, even back in 6/12-8/12 quarter. Nintendo forecast a motherload of Wii Us, so they estimated more losses on the hardware for the full year than they are on pace to achieve. Software on the other hand, most likely did have some profit built in, but because they expense any R&D, the software variable cost component is more manageable so maybe they could have slowed down as it became evident that they weren't selling as many.
Fiscal 3 quarter is almost guaranteed to be profitable. Fiscal 4th almost guaranteed to be ugly, but since Yen has potential to hit 100, Abenomics might just turn that quarter into profits from exchange rates alone. I personally expect bette than forecast buttomlines with a dampened top line outlook, with some serius drum beating for 2013 as the year company fires on all cylinders.
| Vinniegambini said: Last year, contrary to popular opinion, from October to December of 2011, Nintendo posted profits of 250 million; doing so without the 3DS being profitable. Now, 3rd quarter has officially passed and whether Nintendo is profitable will be announced January 30th. Furthermore, the yen has now been in their favour compared to previous quarters and will most likely positively impact their results. What do you believe, will Nintendo be able to post profits this quarter regardless of the average launch of the Wii U? On a side note, Nintendo is up by more than 5% in Japan today compared to Nikkei at .14%. It seems investors are anticipating a profit judging by the recent move. |
Contrary to popular believe, the Wii U launch was actually pretty good. It was in january where the U fell off a cliff. If Nintendo can't post profits in q3 they are in huge trouble.
Ongoing bet with think-man: He wins if MH4 releases in any shape or form on PSV in 2013, I win if it doesn't.

Loss, cause they sold the WiiU at a loss. Also, I think they said they need to sell 1 game with every WiiU for it to be profitable, so with the few games they have, they may make a loss.