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

pezus said:

Well, well, well. Look who lacks reading skills >_>. See bolded

30k - 20k = 10k

What are you talking about?  Their Wii U shipments to Others were 10k in the first quarter.  For the first half they are -10k.  That means they were -20k for the second quarter.



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pezus said:

Oh fuck, I forgot they actually only shipped 10k last quarter. But can you tell me where you see the first half numbers?

So it's actually -10k in 6 months >_>

http://www.nintendo.co.jp/ir/pdf/2013/131030e.pdf



I personally don't see Iwata and Nintendo doing a lot wrong. The 3DS is defying so called experts by selling well despite smartphones and tablets. Wii U is a good product with good games coming.

They have made a few key errors with Wii U, mostly the bundled software (should have been Sports Club, not Nintendoland - which was a waste of resources), launch titles (NSMBU should have been more unique, a core title should have been present...delaying and upgrading The Last Story would have been a great move) and marketing (let's be honest, it's terrible so far). But overall I like their product strategy and with a little success for Wii U they are in great position to make money. For all the criticisms, they still have nearly a 3rd of home consoles sold and about 85% of handhelds. And they make far more money than competitors because of the high profits on 1st party software and hardware that doesn't bleed money.



Seece 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.

MS have been making billions the last 6 years :P (On Xbox)

Haha. Show me the evidence MS made money on the xbox? What rubbish.

Nomura analyst Rick Sherland claimed in August 2013 that by their estimates xbox has made absolutely zelch for MS. He is not the only one. Forbes and others support this.

And here is someone posting on a forum telling me they made billions on xbox.

Take up the argument with these people as well and tell them they are idiots because they don't agree with you.

http://www.neowin.net/news/report-microsofts-xbox-division-has-lost-nearly-3-billion-in-10-years

The truth is all the console manufacturers are suffering. Live with it.



OSAKA--Nintendo Co. (7974.TO) racked up bigger-than-expected quarterly losses on tepid sales of its flagship Wii U game consoles, prompting its president to acknowledge that the time could be near for a status check on the company's strategy.

Making a rare appearance at a Wednesday press conference in Osaka to explain the company's earnings, President Satoru Iwata said that the success of Nintendo's newest console and the future direction of the firm were riding on the performance of a slate of new games during the upcoming holiday sales season. Once those results were in, Nintendo executives would review them to decide "what the company needs to do, over the long-term, about its platform," Mr. Iwata said.

Mr. Iwata didn't elaborate further on options, although he said that he still didn't think a major strategic overhaul was needed.


Mr. Iwata's statement underscores the tremendous pressure the world's biggest videogame company is under to change its console-centric business model, as the videogame industry moves increasingly to a model where games are downloaded, and can move seamlessly between platforms -- including social networks, mobile phones, tablets, computers, and consoles. Sales of Nintendo's Wii U console, released in November last year, are extremely poor: In the six months through September, Nintendo had sold 460,000 units, just 5% of its 12-month target.

Investors and analysts are calling for the company to make its prized game franchises -- like "Super Mario," "Pokemon" and "Zelda" -- more widely available, and release them on mobile platforms. Some investors say releasing Nintendo's formidable content on mobile apps could double or even triple Nintendo's share price.

In the past, Mr. Iwata has said doing so could mean death for the company, which relies on the lure of its games to convince players to buy its hardware. On Wednesday, Mr. Iwata's stance appeared to have softened, although he still maintained that the company's fortunes could turn around with upcoming releases of key titles such as "Super Mario 3D World," "Wii Party U," and "Wii Fit U."

"One game has the power to change everything," Mr. Iwata said, smiling often during the meeting with reporters, which lasted almost an hour beyond the initially scheduled 30 minutes. "Are we satisfied with these sales results? No. Is it impossible to recover from this? No."

Nintendo is struggling to adapt to a fast-changing world in which game apps on smartphones and tablet computers are capturing more of the casual players that had made its blockbuster Wii console and popular Nintendo DS handheld game machine fixtures in living rooms and children's backpacks around the globe. It also faces additional pressure from powerful, next-generation consoles to be rolled out by Sony Corp. and Microsoft Corp. in November.

A scarcity of compelling titles over the summer translated into a net loss of Y8 billion ($81.4 million) and an operating loss of Y18.4 billion for the second quarter of Nintendo's business year, ended Sept. 30. That's only a shade better than the net loss of Y10.8 billion and operating loss of Y18.8 billion posted for the same quarter a year ago.

The third straight quarterly operating loss puts Nintendo's target of Y100 billion in operating profit for the 12 months ending March 2014 further out of reach.

Mr. Iwata, who has said he is committed to the operating-profit target, put on a brave face, telling reporters that that target was still achievable. Nintendo also kept its full-year sales forecast for Wii U consoles at 9 million units. Before the latest results were released, market consensus for Nintendo's full-year operating profit was Y67 billion.

In spurning smartphones and tablets, Nintendo has argued that its success is based on its ability to build its own hardware and provide a gaming experience not available elsewhere. It says that sharing that experience on smartphones may erase the company's unique edge, discourage people from buying Nintendo devices, and kill its game franchises.


Source: http://www.4-traders.com/NINTENDO-CO-LTD-6491906/news/Nintendo-Co-Ltd--Nintendo-Racks-Up-Operating-Loss-17409872/



"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

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Kresnik said:
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.

It's largely because it takes a long time to build up capacity at Nintendo if you don't want to go around just running buyouts (as that's a total crapshoot as to whether the buyout will pay off). Nintendo's key weakness is in *capacity*, which they are addressing, but doing so purely internally takes a while. It's only next year that their new Kyoto building will roll around.

Changes for the future, meanwhile, do not necessitate changes in management. This is, basically, the same crew that brought us the Wii and the DS. Surely they can learn lessons without people having to be fired (which, again, wouldn't really change anything).



Monster Hunter: pissing me off since 2010.

TheLastStarFighter said:
I personally don't see Iwata and Nintendo doing a lot wrong. The 3DS is defying so called experts by selling well despite smartphones and tablets. Wii U is a good product with good games coming.

They have made a few key errors with Wii U, mostly the bundled software (should have been Sports Club, not Nintendoland - which was a waste of resources), launch titles (NSMBU should have been more unique, a core title should have been present...delaying and upgrading The Last Story would have been a great move) and marketing (let's be honest, it's terrible so far). But overall I like their product strategy and with a little success for Wii U they are in great position to make money. For all the criticisms, they still have nearly a 3rd of home consoles sold and about 85% of handhelds. And they make far more money than competitors because of the high profits on 1st party software and hardware that doesn't bleed money.

Pretty sure most "so called experts" were expecting a contraction in the handheld market this generation, and the 3DS seems to be delivering that (and the Vita even more so).  Software numbers are even worse compared to the DS which would suggest that even people buying the 3DS are spending a greater proportion of their time elsewhere than DS owners did.  Smartphones are the likely culprit.

To have a third of home consoles this past quarter, the PS3 would need to have done negative 80k.  If the PS3 (and PS2 if they are actually still shipping any) equal the 360, that would leave the Wii/WiiU with less than 19% of the home console market for the quarter.  Considering the PS3 has been outselling the 360 by a decent margin, we are probably looking at closer to a 15% share in the home console market for Nintendo last quarter.

Also I'm not sure how relevant your last sentence is when software sales have been tepid and their business has been losing money over the last two and a half years primarily due to hardware bleeding money.



I think banking on Wii Party/Fit/Sports Club this holiday to sell consoles is a mistake. People aren't going to pay $300 to experience that ... that was 5-7 years ago now, people have moved on to other things and if they want that type of experience they can always dust off their existing Wii. You can see for example Just Dance isn't putting up big numbers on the Wii U ... why buy a Wii U to play that game when you can get it on your existing Wii? 

Mario needs some help and Nintendo isn't giving it to him, it's like a sports team that's asking its star player to do everything and exhausting him while not putting a good team around him so that he can win.



Mr Khan said:

It's largely because it takes a long time to build up capacity at Nintendo if you don't want to go around just running buyouts (as that's a total crapshoot as to whether the buyout will pay off). Nintendo's key weakness is in *capacity*, which they are addressing, but doing so purely internally takes a while. It's only next year that their new Kyoto building will roll around.

Changes for the future, meanwhile, do not necessitate changes in management. This is, basically, the same crew that brought us the Wii and the DS. Surely they can learn lessons without people having to be fired (which, again, wouldn't really change anything).


The same crew who brought us the PS1 & PS2 also brought us the PS3.  Past successess; although often a good measure; do not equal future stability.  I do not think much that line of reasoning.  Look at what they're doing now, not what they did in the past (heck, even this "crew" don't seem to be able to look what gave them success in the past).

Regarding capacity, that's great.  And I'm glad they're changing it.  But again, it doesn't address the points I brought up.  If Nintendo had these problems in 2006; then again in 2011; is 2014 really a viable date to be saying "but don't worry, it's fixed now?"

I dunno. I berated Yoshida in a thread last week because I think his decisions with WWS have been increasingly terrible in the past few years, despite the fact that he is the man behind much of PS3's software revival at the hands of first parties.  I do not believe he's the right man for the job anymore, despite being a lovely person.  The loyalty I see to Iwata often baffles me, because he's been tripping up for a number of years now but seems to be given a free pass over and over because "it'll be fixed in the future" follwed by "remember, he did the DS & Wii?"



Mr Khan said:
Kresnik said:
Mr Khan said:

It's largely because it takes a long time to build up capacity at Nintendo if you don't want to go around just running buyouts (as that's a total crapshoot as to whether the buyout will pay off). Nintendo's key weakness is in *capacity*, which they are addressing, but doing so purely internally takes a while. It's only next year that their new Kyoto building will roll around.

Changes for the future, meanwhile, do not necessitate changes in management. This is, basically, the same crew that brought us the Wii and the DS. Surely they can learn lessons without people having to be fired (which, again, wouldn't really change anything).

People change. Their ideas and motivation change. It doesn't matter what they did in the past, it's about the here and now. Maybe they were right for that time.

I like Iwata as he seems a nice person - I mean, how may CEOs will take a pay cut so people get to keep their jobs - but business is like war and right now this general is losing his men fast.