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Forums - Nintendo - Nintendo Lowers 2016 financial forecast

OneKartVita said:
Soundwave said:

Poor hardware sales in the game business always leave you at the mercy of things like currency swings. It is what it is.

Been a nightmare of a generation for Nintendo, a tsunami and nuclear meltdown literally greeted the 3DS launch, both Mr. Yamauchi and even more sadly Mr. Iwata are gone, hardware sales are hitting all time lows which is holding back software sales, virtual near abandonment from third parties, complete collapse of their console biz etc. etc.

It really has been a staggeringly bad 5 year stretch for Nintendo. Unimaginable pretty much. 

Yeah it really couldn't have gone worse.  From the top to the bottom.  But are we at rock bottom?  Will 2016 level off the decline and will growth return on 2017 onwards or is the decline going to continue. 

It could be much worse, Nintendo could actually lose money, but despite terrible sales they making solid profit, even with slashed forecast it will be solid profit for Nintendo.



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What still kinda amazes me (not a economics expert, so sorry if I sound too ignorant :P) is that they make profits even when they're not in their brightest era. Nintendo has a very powerful first party lineup and IPs, so they can sail in the storm with obviously less profit, but profit nonetheless.



Miyamotoo said:
OneKartVita said:

Yeah it really couldn't have gone worse.  From the top to the bottom.  But are we at rock bottom?  Will 2016 level off the decline and will growth return on 2017 onwards or is the decline going to continue. 

It could be much worse, Nintendo could actually lose money, but despite terrible sales they making solid profit, even with slashed forecast it will be solid profit for Nintendo.

They're making profit because the Wii U and 3DS were developed years ago so they can be sold at a profit. Naturally with a new console you expect the graph to rise but in 5 years will it be back below this point.  Because that's how the cycle goes.  Peaks and troughs.  

 

Right now we're about to go from a trough to a peak.  it's the natural cycle.  The question is how big will the peak be and how low will the next trough go.



JetSetter said:
So basically: exchange rates messed them up?

Sucks but that's just how the economy works. I'm sure Sony and other Japanese companies are also feeling the sting as well. And it seems that they bumped their 3DS predictions down. But really when they haven't released much of note in the past year, what do you expect?

The echange rates should only hurt both Nintendo and Sony as much as they are allowing it. Almost all of Nintendos games are devoloped in Japan.



OneKartVita said:
Miyamotoo said:

It could be much worse, Nintendo could actually lose money, but despite terrible sales they making solid profit, even with slashed forecast it will be solid profit for Nintendo.

They're making profit because the Wii U and 3DS were developed years ago so they can be sold at a profit. Naturally with a new console you expect the graph to rise but in 5 years will it be back below this point.  Because that's how the cycle goes.  Peaks and troughs.  

 

Right now we're about to go from a trough to a peak.  it's the natural cycle.  The question is how big will the peak be and how low will the next trough go.

Sony with PS3 at beginning had years of losses, Nintendo in their worst gen ever with 3DS and Wii U will have only 2 year of losses in 3DS/Wii U life cycle, and they will finish 3DS/Wii U gen with profit. Nintendo always making profit, same couldnt said for Sony (PS) and espacily Microsoft (Xbox).



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Doesn't sound good for Nintendo.
The future is going to be very hard for them.



Dr.Vita said:
Doesn't sound good for Nintendo.
The future is going to be very hard for them.

They will be swiming in money in just a year. Wait and see.



Miyamotoo said:
OneKartVita said:

They're making profit because the Wii U and 3DS were developed years ago so they can be sold at a profit. Naturally with a new console you expect the graph to rise but in 5 years will it be back below this point.  Because that's how the cycle goes.  Peaks and troughs.  

 

Right now we're about to go from a trough to a peak.  it's the natural cycle.  The question is how big will the peak be and how low will the next trough go.

Sony with PS3 at beginning had years of losses, Nintendo in their worst gen ever with 3DS and Wii U will have only 2 year of losses in 3DS/Wii U life cycle, and they will finish 3DS/Wii U gen with profit. Nintendo always making profit, same couldnt said for Sony (PS) and espacily Microsoft (Xbox).

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. 

 

Goodnightmoon said:
Dr.Vita said:
Doesn't sound good for Nintendo. 
The future is going to be very hard for them.

They will be swiming in money in just a year. Wait and see.

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



Dr.Vita said:
Doesn't sound good for Nintendo.
The future is going to be very hard for them.

Imagine if they had sold 80m+ wii u and lost 5 billion...Pretty bad now that they make profit with mediocre sales... 



Not good. But they seek for this disaster with their horrible management decisions.



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