ethomaz said: superchunk said: I've been saying all year so far that WiiU will rebound and hit about 10m by the end of 2013. Given Nintendo's forecast to be at ~12m by April 1, 2014, I think I'm right in-line with their predictions. With the rumored line-up coming for the 2nd half of the year, it'll be close. I think Nintendo will miss their target again with Wii U. PS4/Nextbox and low priced PS360 will steal Wii U sales at holidays period.

It all depends on the strength of the Wii U's holiday lineup. If they release the right games, they could easily edge out the competition this Christmas.

PS guys think Nintendo wont achieve their goals...thing is i see them really worried about it, what confuses me...

Nintendo served me well in my stocks, ended up making about 1.15 per share plus dividends of 12.50.
I sold everything today though. The market seems really harsh on Nintendo. I'll probably be back once those wii fitU numbers start rolling in.

Nintendo basically has 8 months to reach the Wii U target because it looks like April-July is basically a write off, so they're wasting an entire quarter + a month.

Presumably in August with Pikmin 3 and perhaps a price cut is where hardware will begin to move, but I don't see the upcoming quarter being much better for Nintendo than this last one was (390k shipped is nothing).

They probably will ship maybe 400k from April-July.

DieAppleDie said: PS guys think Nintendo wont achieve their goals...thing is i see them really worried about it, what confuses me...

Nintendo should achieve their goal for 3DS. Pokemon, Monster Hunter, Tomodachi, Mario & CO and so forth should give them a resonable footing. Wii U however is an anomaly without any hints on how Nintendo will tackle their low sales.

Nonetheless, if exchange rates remain the same throughout, Nintendo will be fine. I expect an operating income of 500 million compared to their 1 Billion forecast as Nintendo has not shown me how they will achieve their turnaround.

Furthermore, if one is to look at Nintendo's Inventory (Earning Releases), it seems as if Nintendo had its orders of Wii U units already produced ready for shipment; hence, their low profit this past fiscal year as they were not able to sell their inventory.

Vinniegambini said: DieAppleDie said: PS guys think Nintendo wont achieve their goals...thing is i see them really worried about it, what confuses me... Nintendo should achieve their goal for 3DS. Pokemon, Monster Hunter, Tomodachi, Mario & CO and so forth should give them a resonable footing. Wii U however is an anomaly without any hints on how Nintendo will tackle their low sales. Nonetheless, if exchange rates remain the same throughout, Nintendo will be fine. I expect an operating income of 500 million compared to their 1 Billion forecast as Nintendo has not shown me how they will achieve their turnaround. Furthermore, if one is to look at Nintendo's Inventory (Earning Releases), it seems as if Nintendo had its orders of Wii U units already produced ready for shipment; hence, their low profit this past fiscal year as they were not able to sell their inventory.

This is going to be a problem for them because I don't imagine retailers are going to be very trigger happy in ordering tons of new Wii U stock. There's probably a glut of inventory stuck at retail as is. It's going to be one really slow spring/summer.

Two words
MARIO KART

Soundwave said: Nintendo basically has 8 months to reach the Wii U target because it looks like April-July is basically a write off, so they're wasting an entire quarter + a month. Presumably in August with Pikmin 3 and perhaps a price cut is where hardware will begin to move, but I don't see the upcoming quarter being much better for Nintendo than this last one was (390k shipped is nothing). They probably will ship maybe 400k from April-July.

Even 400k might be optimistic.  At the current sales rates they have around two quarters worth of supply in the Americas, and even more in Other.  Japan is the only one likely to sell through its shipment by the end of June.  Now obviously there will still be some shipments since supply isn't evenly distributed, and demand isn't equal across all SKU's, but the shipments are likely to be low.

^^

But since they manufactured them last quarter, there will be less manufacturing costs in the coming quarter or two.

Now again, I'll ask, how is Nintendo predicting a greater operating income than Net income when the Yen is projected to be favorable? Shouldn't it be the other way around like it was on this report for last year?

nadam23 said: ^^ But since they manufactured them last quarter, there will be less manufacturing costs in the coming quarter or two. Now again, I'll ask, how is Nintendo predicting a greater operating income than Net income when the Yen is projected to be favorable? Shouldn't it be the other way around like it was on this report for last year?

Perhaps costs related to that new development facility they're building in Japan that need to be paid in the next year? Maybe they're planning a stock buy back or something as well or have some accounts payable that need to be paid out.