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.
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.
Miyamotoo said:
Ofcourse its not, its only gaming division, same goes for Microsoft. |
neither Son or Microsoft break out ther gaming divisons profit/loss/revenue during the years mentioned (if ever) those numbers are not real numbers-
Miyamotoo said:
Ofcourse its not, its only gaming division, same goes for Microsoft. |
No the charts one
Pineapple said:
It's strictly speaking correct, but the true way of stating it would be that it's the lowest since the launch of the DS lite and Wii. The net sales of the modified forecast are virtually identical with the ones from 2003 - they were 503 billion yen then, and very slightly lower than the 2004, 2005 and 2006 ones of 514, 515 and 508 billion yen. The DS-Wii years had revenues of completely different levels, with a near double in 2007 to 965 billion, and an even bigger increase to the 1625 billion in 2008. But the point remains - the 8th gen revenue average for Nintendo so far is virtually exactly the same as it was in the 5th and 6th generations, which together have an average of roughly 510 billion a year from 1997 to 2006. While Nintendo has dropped from the situation they were in with the Wii and DS, their position is probably stronger than at any point from the N64 launched until the DS Lite/Wii launched. |
Even if the 8th gen #s were the same or a little higher (as oppossed to lower as they actally are), that is still terrible as they have had no revenue growth i a 12-15 year period in wich their industry has grown tremendously- their revenue and market share have dropped in a tme when the size of the overal industry has grown - When your piece of the pie is smaller today than it was 14 years ago and the size of the pie is CONSIDERABLY larger, that is not good and it indicates a downward trend... over time
Like i said, Nintendo is making a huge bet on mobile and the upcoming generation of hardware/software-
over the past 15 years the only place they have seen growth is in the DS and Wii- I think they will be going very hard at a similar if not the same market segment- Youth/female/family/casual not neccesarily in the order
Miyamotoo said:
Ofcourse its not, its only gaming division, same goes for Microsoft. |
What is your source for those numbers- the MSFT and Sony numbers are not real as neither Sony of MSFT provided them and neither break ot her gaming profits/loss # s
So you should at least source these old grpahs- i know they have been around on the net for a while and when people see the same info enough times they assume it is true but if it can t be linked to a credible source then it does not mean much if anything
The info i have posted re Nintenod s revenues today in this thread comes from Bloomberg and the Investor Relations part of Nintendo website (audited public information they have to report)
Dunban67 said:
Even if the 8th gen #s were the same or a little higher (as oppossed to lower as they actally are), that is still terrible as they have had no revenue growth i a 12-15 year period in wich their industry has grown tremendously- their revenue and market share have dropped in a tme when the size of the overal industry has grown - When your piece of the pie is smaller today than it was 14 years ago and the size of the pie is CONSIDERABLY larger, that is not good and it indicates a downward trend... over time Like i said, Nintendo is making a huge bet on mobile and the upcoming generation of hardware/software- over the past 15 years the only place they have seen growth is in the DS and Wii- I think they will be going very hard at a similar if not the same market segment- Youth/female/family/casual not neccesarily in the order |
Most of the growth in recent years isn't really coming from console manufacturers. Its from the AAA 3rd party publishers. They are the ones that are making the real money in the industry these days. When Nintendo saw growth with DS and Wii, they did what they do best, which is maximize those profits. Then they went back to business as usual and made steady modest profits.
When the AAA bubble bursts and the gaming industry contracts Nintendo will still be making their safe steady profits.
SpokenTruth said:
What losses? |
The cut forecast.
700m dollars down is a big number....12.3% of total sales. I can't think of anything they they misattributed except maybe not releasing zelda? Or what else could it be? Additionally, operating profit is down. They expected a 10% ROI. They sell 500b in rev, and make 50b in profit. That's logical.
The problem is that if they lost 12.3% in revenue, then they should've also lost 12.3% in operating profit, unless margin hasn't covered cost. But I can't think of anything that HASN'T met expectations. Splatoon killed it. Amiibo are still selling extremely well. There is a 22% difference between the 12.3% rev change, and the 10% profit expectation. ie, rev is down 12.3% but operating profit down 34%.
Basically there is 100m in unexpected costs somewhere because the profit slash of 170m is offset by the 12.3% return on the 700m in lost revenue. 12.3% of 700m is roughly 61m or so. Hmmm I'm getting confused at this point as well, so I'll just summarize.
Revenue is down 12%
Profit is down 34%.
If revenue translates directly to profit, then profit should only be down 12%.
So there are 2 options.
One thing cost them money and didn't return as expected (very doubtful)
Something has cost them 100m$+ and hasn't released yet, nor will release until after march.
EDIT2: Now, One possible expectation would be the DeNa delays. I could see this being a clear determinant, but 100m down still seems a bit hefty.


bunchanumbers said:
Most of the growth in recent years isn't really coming from console manufacturers. Its from the AAA 3rd party publishers. They are the ones that are making the real money in the industry these days. When Nintendo saw growth with DS and Wii, they did what they do best, which is maximize those profits. Then they went back to business as usual and made steady modest profits. When the AAA bubble bursts and the gaming industry contracts Nintendo will still be making their safe steady profits. |
the Xbox brand has grown pretty steady since it launched- even the Xbox 1 is selling well compared to previous xbox hardware - it just does not seem tht way becasue the PS4 is selling at a record pace- so both Xbox and Sony have seen significant revenue growth during the same period in which Nintendo s revenue has contracted significantly- Both Xbox and Sony (not to mention mobile) have taken ALOT of market share from Nintendo over the last 8-15 years
As you know, since Nintendo is also a large software developer/publisher those large 3rd party AAA devs and publshers are competing with Nintendo as well for gaming dollars
Our household only has Nintendo (+ mobile due to I phones and i pad) gaming consoles- Nintendo still has lots of cash, alot of game making talent and the most well know IP in the industry- it is not all gloom and doom- BUT that makes the fact that their compnay, revenue and market share have been consistently shrinking a negative trend and indicates a lack of execution by their mngmnt over time- Due to that fact, they are pretty much having to make such big bets on their next gen hardware/software and mobile (and all in a pretty close time frame) a concern- they very well may win these bets they are making and do wonderfully- but the track record of manegment has not been too good - lets hope they pull a wii and a DS out of the hat!
| Soleron said: Trying to blame it on exchange rates when it's really that they're just not releasing games this year. |
How about expenses? If Nintendo are in full swing, readying a new console and software for release at some point in the next year or two, that's going to eat up a lot of money.

| Dunban67 said: the Xbox brand has grown pretty steady since it launched- even the Xbox 1 is selling well compared to previous xbox hardware - it just does not seem tht way becasue the PS4 is selling at a record pace- so both Xbox and Sony have seen significant revenue growth during the same period in which Nintendo s revenue has contracted significantly- Both Xbox and Sony (not to mention mobile) have taken ALOT of market share from Nintendo over the last 8-15 years As you know, since Nintendo is also a large software developer/publisher those large 3rd party AAA devs and publshers are competing with Nintendo as well for gaming dollars Our household only has Nintendo (+ mobile due to I phones and i pad) gaming consoles- Nintendo still has lots of cash, alot of game making talent and the most well know IP in the industry- it is not all gloom and doom- BUT that makes the fact that their compnay, revenue and market share have been consistently shrinking a negative trend and indicates a lack of execution by their mngmnt over time- Due to that fact, they are pretty much having to make such big bets on their next gen hardware/software and mobile (and all in a pretty close time frame) a concern- they very well may win these bets they are making and do wonderfully- but the track record of manegment has not been too good - lets hope they pull a wii and a DS out of the hat! |
of course they did. They followed the Wii model of being profitable at launch and not taking heavy losses for years. They saw what Nintendo did with a little $250 box that made them 10 billion and they wanted to do the same thing.
If they continued along their old path, both would have ended up right where they started, with lots of consoles and no money. I say good for them for realizing that their old model was not making money, or was too risky.
As for Nintendo, they are doing different things now to diversify their interests. They own a MLB team. They are working on a Universal theme park. They are considering leveraging their IPs for movies and tv. Amiibos are selling like crazy and their next generation of hardware are on the way after unifying their handheld and console teams. Video games are a volatile industry and there are lots of companies that shut doors over video games.
We'll just have to see how it all plays out, but I think that in the end Nintendo will march on. The real question will be what form Nintendo will take going forward.