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Forums - Nintendo - Nintendo Lowers 2016 financial forecast

elektranine on 27 February 2016
bunchanumbers said:
Nintendo is still forecasting profits. What's with all the Nintendoom? You guys are acting like Nintendo is selling their buildings to pay the electricity bills.

So as long as they make at 1 yen profits each year its all fine? And they already have sold real estate, they sold alot to MS last gen.



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elektranine on 27 February 2016
tak13 said:
OneKartVita said:

They haven't always made a profit.  Their company's value was around 80BN before the 3DS and Wii U.  They are now down to around 15BN. Will the NX continue the decline over the next 5 years or bounce them back.  

 

PS. (pun intended)  let's keep this on topic about Nintendo.  No need to bring Sony or Microsoft into this. 

 

They're going to invest in swimming pools made from money?  that sounds like a bad investment to me.  

 

Value? When it was so high? Do you mean share price/market cap?

Yes during the Wii/DS years they used all those profits to fund stock dividends to pump up their stock value. Those years are long gone and will never return. They should have at least used some of those profits to fund R&D and company expansion but they didn't. Their dividends used to be 10x what they are today.



ZhugeEX on 27 February 2016
Miyamotoo said:
Ruler said:

The first graph is sony as whole

 

Ofcourse its not, its only gaming division, same goes for Microsoft.

There wasn't always a "Gaming Only" division for Sony and Microsoft. So directly comparing to Nintendo can be misleading for some years. 

 

Also I feel like I'm repeating myself here but this revision HAS NOTHING TO DO WITH NX OR R&D COSTS. 

Here is a breakdown of Nintendo financial performance over the past few years. FY2016 refers to the year ending March 31st 2016. 

 

CLICK FOR LARGER VERSION



bunchanumbers on 27 February 2016
elektranine said:
bunchanumbers said:
Nintendo is still forecasting profits. What's with all the Nintendoom? You guys are acting like Nintendo is selling their buildings to pay the electricity bills.

So as long as they make at 1 yen profits each year its all fine? And they already have sold real estate, they sold alot to MS last gen.

Yeah it was about 20 acres of unused land back in 2007. Its not like they sold their headquarters. And I have no idea where you're getting 1 yen. They are just plain posting profits. But I get the feeling that even if they were posting billion dollar profits every quarter I would still be hearing Nintendoom.



mjk45 on 27 February 2016
Miyamotoo said:
mjk45 said:

The trouble is the  system is about chasing growth , it's not good enough to just make a tidy profit , during the Australian reporting season you can have a company make record profits with it's growth being  both a company record and best in it's market and still get written down because of market expectation .

They making profit despite the worst generation ever, despite transition, despite totally new projects (themed parks, mobile games, movies...) and despite preparing complete new platform. I said it pretty good they making profit despite all that.

I wasn't being negative towards Nintendo and the profits it made  , What I'm trying to say is making a profit isn't the only criteria the market looks at when valueing a company , many times over the years companies with good profits have been marked down because of slow or negative growth.



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mjk45 on 27 February 2016
ZhugeEX said:
Miyamotoo said:

 

Ofcourse its not, its only gaming division, same goes for Microsoft.

There wasn't always a "Gaming Only" division for Sony and Microsoft. So directly comparing to Nintendo can be misleading for some years. 

 

Also I feel like I'm repeating myself here but this revision HAS NOTHING TO DO WITH NX OR R&D COSTS. 

Here is a breakdown of Nintendo financial performance over the past few years. FY2016 refers to the year ending March 31st 2016. 

 

CLICK FOR LARGER VERSION

Correct me if I'm wrong doesn't R&D being a liability get put on the books at the time the  expenses occured.



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ZhugeEX on 27 February 2016
mjk45 said:
ZhugeEX said:

There wasn't always a "Gaming Only" division for Sony and Microsoft. So directly comparing to Nintendo can be misleading for some years. 

 

Also I feel like I'm repeating myself here but this revision HAS NOTHING TO DO WITH NX OR R&D COSTS. 

Here is a breakdown of Nintendo financial performance over the past few years. FY2016 refers to the year ending March 31st 2016. 

 

CLICK FOR LARGER VERSION

Correct me if I'm wrong doesn't R&D being a liability get put on the books at the time the  expenses occured.

Correct, but Nintendo never mentioned R&D in their revision. They said the exchange rate impact and lower than expected performance of the 3DS was the reason for the decrease. I wouldn't expect Nintendo to suddenly start increasing R&D costs this late into the year, especially when it would have been accounted for in the prior forecast and budgets were set then. 



OneKartVita on 27 February 2016
Miyamotoo said:
OneKartVita said:

He said 5BN. At one point it was 4BN you say but the ps3 reduced that for the next 5 years.  I'm not saying it  made a profit just saying he's wrong.  

 

So Nintendo making a lot less profit now and Playstation now beginning to earn a lot.  Funny how things change. 

They has profit in 2010. so lose is around 4B till 2010, buy Sony made profit with PS3 every year from 2010, question is at end with all years if Sony made any money PS3, probably but not big one.

Not that Nintendo has they worst generation ever in sales, but they are in middle of transition, with totally new projects (themed parks, mobile games, movies...) and preparing complete new platform. I said it pretty good they making profit despite all that.

The point is the guy that threw that 5BN number out there was wrong.  That's the point.  

 

Nintendo are moving to a new platform but the dedicated handheld space is dying so they could easily drop from ~80m consoles this gen to below 50m. That's not going to leave much potential for big profits especially with the market expected to continue declining.  

 

So going forward there is potential to do very good but also potential to do very bad. 



Miyamotoo on 27 February 2016
OneKartVita said:
Miyamotoo said:

They has profit in 2010. so lose is around 4B till 2010, buy Sony made profit with PS3 every year from 2010, question is at end with all years if Sony made any money PS3, probably but not big one.

Not that Nintendo has they worst generation ever in sales, but they are in middle of transition, with totally new projects (themed parks, mobile games, movies...) and preparing complete new platform. I said it pretty good they making profit despite all that.

The point is the guy that threw that 5BN number out there was wrong.  That's the point.  

 

Nintendo are moving to a new platform but the dedicated handheld space is dying so they could easily drop from ~80m consoles this gen to below 50m. That's not going to leave much potential for big profits especially with the market expected to continue declining.  

 

So going forward there is potential to do very good but also potential to do very bad. 

Well they probably going with unifed platform so handheld will be more appeling same like home console.

Offcourse, but they expanding their business.



OneKartVita on 27 February 2016
Miyamotoo said:
OneKartVita said:

The point is the guy that threw that 5BN number out there was wrong.  That's the point.  

 

Nintendo are moving to a new platform but the dedicated handheld space is dying so they could easily drop from ~80m consoles this gen to below 50m. That's not going to leave much potential for big profits especially with the market expected to continue declining.  

 

So going forward there is potential to do very good but also potential to do very bad. 

Well they probably going with unifed platform so handheld will be more appeling same like home console.

Offcourse, but they expanding their business.

It may or may not be more appealing.  If the platform is unified that means unlike this gen many Nintendo fans instead of buying 2 Nintendo console (home + handheld)  they might only buy one.  and yes they're expanding,  they recognise the decreasing potential of their dedicated console business.