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Forums - Nintendo - Nintendo 3rd Quarter Results (Oct-Dec) - Profit of over 450 million US

MoHasanie said:
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.


Wii U has a software attach ratio of around 2.0. It's bad, but it's better than 1.



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Profit of around 200m



I'm interested.

They will obviously post a profit, with 3 consoles selling for a profit and the software sales I would be very surprised if they don't, but I want to know how much.

I also want to know how much will they cut their sales projections for the rest of the FY.



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MoHasanie said:
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.

We now ignore the profit of the Wii, DS and 3DS, and all their games (Animal Crossing)? 

 

A profit is almost assured, and R&D will be lower this year (probably).



 

Here lies the dearly departed Nintendomination Thread.

Train wreck said:
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.

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)

JEZEZ AMN!

 

According to you Nintendo will announce their end instead of profit.

If so you know that gaming industry in general is dead?

 

So basically only Call of Duty is making profit. what a sad world.



Switch!!!

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Mnementh said:
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.

It seems with Nintendo doing as bad as it has been doing lately, it has clouded the logic of many people here, which is understandable.

Ill keep it simple to a series of yes or no questions so you can get a better idea of where im coming from.  Nintendo still gets a majority of its operating income from the DS and the Wii so lets break down last year and see if you think this year is going to be different. Note that nintendo officially dropped the price of the DSi and DSi XL on may 10 and the wii on October 15 (the Wii from 149 to 129 the DSi from 149 to 99 and the XL from 169 to 129), so less money from each sale.

These are from October 1 to December 31:

Wii shipped 5.61m units last year, do you think they shipped more this year?

DS shippments were 4.64m, do you think they shipped more this year?

Wii software shipped 53m units last year, do you think they shipped more this year?

DS software shipment totaled 23m last year, do you think they shipped more this year?

3DS shipped 8.36m in Q3 last year, do you think they shipped more this year?

3DS shipped 28m units of software, do you think they shipped more this year?

Nintendo mention that the Wii U will be sold at a loss in all territories (which is a contrast to the Wii which was profitable out the gate in all three major territories) and was on sale for 6 of the 13 weeks in the quarter, for the US at least, which is Nintendo biggest market.

250 million dollars is not that much for a company selling as much as it did last year and I'm sure you are finding yourself saying "NO" to the questions above more so than "YES".



I've read that the stock bump is due to China considering lifting the ban on game systems



*fingers crossed*



fedfed said:

JEZEZ AMN!

 

According to you Nintendo will announce their end instead of profit.

If so you know that gaming industry in general is dead?

 

So basically only Call of Duty is making profit. what a sad world.

What are you talking about man. Read his post and answer his arguments. Also, Nintendo isn't the center of the gaming universe you know, and COD isn't the center of the non-Nintendo gaming universe either.

You make us look bad.

The main problem with his post is that he said that the U was a connundrum. That's not true for Q3.



Profit.

Nintendo SW sales were pretty good