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Forums - Nintendo - Nintendo Q2 Earnings October 30th - Results Inside

^Its sad how much you try lol. The fact that they have had billion dollar loses at all is pathetic. This pales in comparison and if things really were that bad they would just drop home consoles and go all handheld. Then we would never see Ninty outsold again. Don't you enjoy Ninty giving Sony a home console they can beat instead of an dominate handheld?



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Arius Dion said:
IsawYoshi said:
ListerOfSmeg said:
Vinniegambini said:

 

EDIT: Q2 Results are as followed:

Operating Loss of 187 million (embarrassing)

Shipments of Wii U - 300k

Shipments of Wii U Software - 5 million

Shipments of 3DS - 2.4 million

Shipments of 3DS software - 16 million

Wii U still sold at a a loss - affects Nintendo's profits greatly.

I actually lol at the (embarrassing ) part you must not know anything about it to make such a claim. sure a loss os bad but millions in loss beats billions in loss and that is what Sony and MS have done plenty of times. It only looks bad when you dont have all the facts and dont compare it to what the other companies are losing.

Embarrassing nontheless. The reason the nubers are this low is the wii u sales, and they are embarrassing too. Why wouldn't the loss be? 

I'm expecting Iwata to be leaving his throne within 2015 if they don't sharpen up in a good maner. I kinda doubt they will though.

I'm doubtful any one will be reprimanded, demoted, punished or outright fired. When's the last time any one at Nintendo was let go for flops and bad business decisions? To go from making hands over fist money with the Wii, breaking records and the like, to now losing money and having a stinker on their hands with the Wii U, someone should be looking at a shake up within the company.

The investor Q&A should be very interesting. 


By the way, there will be actually a Investors Q&A this week?



"Hardware design isn’t about making the most powerful thing you can.
Today most hardware design is left to other companies, but when you make hardware without taking into account the needs of the eventual software developers, you end up with bloated hardware full of pointless excess. From the outset one must consider design from both a hardware and software perspective."

Gunpei Yoko

nadam23 said:
TheLastStarFighter said:

You can assume that almost all Wii U's shipped in this quarter were done so at the reduced price.  Sales were almost stagnant before the price cut/wwhd launch, so retailers were not ordering more units.  a $50 price cut is significant. It's an additional $15,000,000 in lost revenue despite the increased units shipped.  The more hardware moved actually is actually more likely a negative thing in the short term.  Monster Hunter was a great title, but Nintendo would make more off of a title like Luigi's Mansion because it is first party.  There were no big first party titles released this quarter.  Wind Waker's release was only digital.


I see. This helps explain it. 

I keep thinking nintendo is going to have a good next quarter every time I read these results, but then every quarter I'm wrong. Now I'm thinking it again. There's no way Nintendo doesn't make a pretty large operating income for quarter 3 right?

Without a doubt they will have a solid 3rd quarter.  It almost goes without saying.  The 3rd quarter is where they make most of their sales, and it is supposed to be the quarter that balances off the rest of the year. Realistically, I think most sensible people expect Nintendo to turn a good profit for the quarter and in turn for the full fiscal year.  The debate is mostly how much.  Nintendo had bold projections for Wii U sales and overall profits.  They will probably come up short on both, but I would still expect lots of black ink.  3DS should do great and if Wii U can get respectable, they will be making lots of money.



Max King of the Wild said:
TheLastStarFighter said:
Max King of the Wild said:
Going by the rule of thumb of "doubling Q4, Q1, and Q2 to estimate Q3" that would put the Wii U's shipments at 1.7mil. Now, that would be remarkably bad and I would expect much higher (at least 3)... However, at the same time going from 300k -> 3mil would be a massive increase and I'm not sure if the retailers would accept much more considering last year how long they sat around for after Christmas.


I think that rule isn't very good in this case given the complete lack of software Wii U was getting, and the price cut/new bundles it just received.  I would take post-price cut sales for a few weeks, pretend that was the sales for the full year and then do your math to get an estimate.



Yeah, seeing post price cut sales would make sense. At 60k weekly that would put Wii U at about 4.8mil next quarter with that rule. That's more or less what I expect.

Seems about right.



ListerOfSmeg said:
Vinniegambini said:

 

EDIT: Q2 Results are as followed:

Operating Loss of 187 million (embarrassing)

Shipments of Wii U - 300k

Shipments of Wii U Software - 5 million

Shipments of 3DS - 2.4 million

Shipments of 3DS software - 16 million

Wii U still sold at a a loss - affects Nintendo's profits greatly.

I actually lol at the (embarrassing ) part you must not know anything about it to make such a claim. sure a loss os bad but millions in loss beats billions in loss and that is what Sony and MS have done plenty of times. It only looks bad when you dont have all the facts and dont compare it to what the other companies are losing.

I'm glad you are banned.

You know nothing of financials, so please step aside. Furthermore, the results are not within the realms of market expectations and they are embarassing as they have been posting operational losses for the past three years (they will post an operating income year-end however, which is positive in itself) and have shown no signs of growth.



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Arius Dion said:
IsawYoshi said:

Embarrassing nontheless. The reason the nubers are this low is the wii u sales, and they are embarrassing too. Why wouldn't the loss be? 

I'm expecting Iwata to be leaving his throne within 2015 if they don't sharpen up in a good maner. I kinda doubt they will though.

I'm doubtful any one will be reprimanded, demoted, punished or outright fired. When's the last time any one at Nintendo was let go for flops and bad business decisions? To go from making hands over fist money with the Wii, breaking records and the like, to now losing money and having a stinker on their hands with the Wii U, someone should be looking at a shake up within the company.

The investor Q&A should be very interesting. 

Who would replace him, though? A recent GAF thread discussed that the board of directors is almost entirely stacked with people favorable to Iwata (there is one person alone who may have differing opinions, possibly). Unless Yamauchi's shares go to Arakawa and Arakawa himself decides to seize control, a leadership shakeup would make no difference in terms of direction. It's like all the Americans yelling "impeach Obama" when what that would get them... is President Joe Biden.

Aside from the fact that Nintendo's doing what they can with the Wii U. It is not a poor product, but it has been poorly executed so far, and some of those factors (third party flight) being ultimately out of Nintendo's hands, they're doing what they can: cut price and bundle winning software and wait for more good software to come. Not sure what the anti-Wii U crowd wants, here (cutting the Wii U short and replacing it quickly is the recipe to kill Nintendo's reputation altogether, as not standing by their hardware is really what killed Sega, the lack of confidence from the CD, 32X, and Saturn).

We also forget when Sony was losing money hand over fist with the PS3 (and they were selling more units at the time), and managed to turn it around. Granted, because they had the third parties all running interference for them, but surely Nintendo could manage a somewhat similar turnaround.



Monster Hunter: pissing me off since 2010.

I had expected a small profit so this is quite disappointing. 3DS is doing alright but Wii U needs some serious help. This holiday season will be extremely important for Wii U and Nintendo better give 101% or else I'll start to fear for Wii U's future.



An operating loss? That's rare.



Mr Khan said:
Arius Dion said:
IsawYoshi said:
 

Embarrassing nontheless. The reason the nubers are this low is the wii u sales, and they are embarrassing too. Why wouldn't the loss be? 

I'm expecting Iwata to be leaving his throne within 2015 if they don't sharpen up in a good maner. I kinda doubt they will though.

I'm doubtful any one will be reprimanded, demoted, punished or outright fired. When's the last time any one at Nintendo was let go for flops and bad business decisions? To go from making hands over fist money with the Wii, breaking records and the like, to now losing money and having a stinker on their hands with the Wii U, someone should be looking at a shake up within the company.

The investor Q&A should be very interesting. 

Who would replace him, though? A recent GAF thread discussed that the board of directors is almost entirely stacked with people favorable to Iwata (there is one person alone who may have differing opinions, possibly). Unless Yamauchi's shares go to Arakawa and Arakawa himself decides to seize control, a leadership shakeup would make no difference in terms of direction. It's like all the Americans yelling "impeach Obama" when what that would get them... is President Joe Biden.

Aside from the fact that Nintendo's doing what they can with the Wii U. It is not a poor product, but it has been poorly executed so far, and some of those factors (third party flight) being ultimately out of Nintendo's hands, they're doing what they can: cut price and bundle winning software and wait for more good software to come. Not sure what the anti-Wii U crowd wants, here (cutting the Wii U short and replacing it quickly is the recipe to kill Nintendo's reputation altogether, as not standing by their hardware is really what killed Sega, the lack of confidence from the CD, 32X, and Saturn).

We also forget when Sony was losing money hand over fist with the PS3 (and they were selling more units at the time), and managed to turn it around. Granted, because they had the third parties all running interference for them, but surely Nintendo could manage a somewhat similar turnaround.

Probably should have highlighted your entire post lol. But in any case, here's my response;

 

The 'winning' software they are bundling is not showing any signs of moving the hardware. Which is the primary purpose of a first party dev. If the software is poor the box is also poor (by default). Here's the problem, the anti Wii U crowd, is generally a pro Wii crowd, they want a return to that form from Nintendo.

Nintendo is doing a pretty good job destroying their reputation as a software developer.

I never forgot Sony's clusterf*** known as the PS3. They will never recoup those loses. Sony's Vita was doa, and Sony selling off buildings to hide their horrid finances has not been forgotten by me. But I've never been a Sony fan, so that's largely not something I care about.

Nintendo on the other hand, I have been a fan of. But there are certain things I will not cosign on. Its dangerous to not hold a company accountable. Turning a blind eye to their failings and even praising those failings only encourage more failings.



Bet between Slimbeast and Arius Dion about Wii sales 2009:


If the Wii sells less than 20 million in 2009 (as defined by VGC sales between week ending 3d Jan 2009 to week ending 4th Jan 2010) Slimebeast wins and get to control Arius Dion's sig for 1 month.

If the Wii sells more than 20 million in 2009 (as defined above) Arius Dion wins and gets to control Slimebeast's sig for 1 month.

Mr Khan said:

Not sure what the anti-Wii U crowd wants, here


I'm definitely not as versed on Nintendo matters as I am with Sony, but perhaps what people want is something different for the future; rather than the now.

I agree with you.  There's not much else they can do for the moment except slash the price; bundle games that people do want and try their best to get software out for the future.

Question is, why are you forced to wait for this "future software" in the first place?

This is what, the third round of "software is coming; please understand" (Wii; 3DS; Wii-U)?  Maybe it's time to start questioning things.  Inevitably Nintendo aren't going to leave the hardware business any time soon; and Nintendo hardware appears to be on a shorter lifecycle then at the very least Sony, but likely Microsoft too.

Someone else could run the development that's already going on for Wii-U/3DS, while planning ahead for the next batch of hardware (as silly as that sounds less than a year after Wii-U's launch) to avoid having to say "We're sorry, games are coming" for the fourth and fifth times.  Because apparently, that's not something Iwata can manage.  He always gets there in the end; I'm not questioning that.  But someone else could potentially "get there" right from the start and then continue that through to the end.