By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Nintendo Discussion - Nintendo have not made an operating profit overall this generation.

Ck1x on 16 July 2016
Barkley said:
Cloudman said:
Well, it could have been worse. Didn't it take a couple of years before the PS3 became profitable? At least the 3DS helped deflect the losses.

Actually I'm pretty sure the PS3 lost quite a substantial amount of money overall, I don't think the profits it started turning later on actually made up there early losses. Don't have figures so I could be wrong.

Sony is still close to 8 billion dollars in debt. Not sure how much of this is contributed to by their console division or their other divisions, but seeing as how Nintendo has none makes this thread very pointless overall...



Around the Network
Barkley on 16 July 2016
Ck1x said:

Sony is still close to 8 billion dollars in debt. Not sure how much of this is contributed to by their console division or their other divisions, but seeing as how Nintendo has none makes this thread very pointless overall...

Jesus christ, what is wrong with a lot of people on this forum. Why the hell does nintendo not being in debt make a disucssion about their financials this generation "very pointless" ridiculous. In no way does this thread say anything about "NINTENDO IS IN FINANCIAL TROUBLE OMG THEY'RE GOING BANKRUPT." This thread is inundated with Nintendo Fans taking it as an attack and illogically saying that discussing Nintendo's Operating Profit for the generation is pointless.

This isn't a financail contest thread, this isn't a Nintendo doom thread. This is a thread to discuss Nintendo's performance and operating profit during this generation. The fact that they have been operating at a profit the last couple of years does NOT make this thread irrelevant as some of said, THAT'S PART OF WHAT SHOULD BE DISCUSSED IN THE THREAD.

Nintendo's Financials in relations to other companies also does not make discussing THEIR financials irrelevant.



Pavolink on 16 July 2016
Barkley said:
Ck1x said:

Sony is still close to 8 billion dollars in debt. Not sure how much of this is contributed to by their console division or their other divisions, but seeing as how Nintendo has none makes this thread very pointless overall...

Jesus christ, what is wrong with a lot of people on this forum. Why the hell does nintendo not being in debt make a disucssion about their financials this generation "very pointless" ridiculous. In no way does this thread say anything about "NINTENDO IS IN FINANCIAL TROUBLE OMG THEY'RE GOING BANKRUPT." This thread is inundated with Nintendo Fans taking it as an attack and illogically saying that discussing Nintendo's Operating Profit for the generation is pointless.

Operating profits are most important than overall profits to decide whether or not the current gen was worth. As you pointed on the OP, they started profiting the last two fiscal years, but don't overcome the first years.

 

Overall, it's a bad gen, including the 3DS that by no means it's a big success. Just good enough.

 

Anyone believing this is not important knows next to nothing about financials.



Proud to be the first cool Nintendo fan ever

Number ONE Zelda fan in the Universe

DKCTF didn't move consoles

Prediction: No Zelda HD for Wii U, quietly moved to the succesor

Predictions for Nintendo NX and Mobile


Ck1x on 16 July 2016
etking said:
bigtakilla said:
We still got another year, and Pokemon Go looks like it could be the most profitable thing that might have ever happened to Nintendo. Basically this thread is a little premature.

Unfortunately, Nintendo itself will barely see any profits from the game. Most profits go to Apple, Google, Niantic and the Pokemon company.

Talk about spreading misinformation! Why do people think that everyone but Nintendo will profit from Pokémon GO but Nintendo? I understand that it's fun to take success away from the company whenever possible, but damn how does one create that Google stands to make more than Nintendo? No one has even successfully broken down the percentage that Nintendo gets from Pokémon merchandise and games on here. It's definitely not some made up number of 10%, because the way Nintendo is tied in and around the Pokémon IP can be confusing to gauge. 



naruball on 16 July 2016
Teeqoz said:
Miyamotoo said:

Actualy Wii U was sold at loss only in 1st year or so.

Fact is there will not lose any money this gen, they have operating loss yes, but overall they will have solid profit from this gen.

This is false. They never announced Wii U hardware was being sold at a profit, that is a misconception from 2014 and it baffles me that people still believe that to be the case. What Nintendo actually said was that Wii U hardware wouldn't incur any more losses for that period, because they were sitting on a lot of unsold Wii U inventory after they shipped less than they expected. Since this also meant they would have to manufacture less Wii U units than expected, the revenue from already manufactured units (where the loss was incurred in an earlier period) would exceed the loss from manufacturing new Wii U units. Hardware still had a negative margin.

Is it though? Or are you simply referring to something different?

http://www.gamespot.com/articles/nintendo-continues-to-sell-wii-u-hardware-at-a-loss/1100-6412671/

http://www.eurogamer.net/articles/2016-05-02-the-nx-wont-be-sold-at-a-loss



Around the Network
palou on 16 July 2016
Barkley said:

Most people on this site keep stating that the WiiU is profitable for Nintendo even with it's poor performance, however Nintendo has throughout this generation so far actually LOST money overall. People have used it as a primary reason as to why Nintendo shouldn't leave the hardware business, stating that it is still profitable even when performing badly. However if the 3ds cannot cover the damage done by the WiiU then this is clear not the case. Unless they far exceed projections for this coming fiscal year Nintendo will end the generation with a net loss. Hopefully the NX can turn the situation around and return to Nintendo overall making a profit on their platforms.

What do you believe has caused the losses so far this generation? Is the 3ds turning a good profit but it still can't offset the damage done by the WiiU? Are the WiiU losses not THAT bad, but the 3ds isn't profiting as much as it seems? Or is Nintendo losing money in other areas not related to their dedicated hardware?

I had not realised this at all, thanks to ZhugeEX for the image from his twitter.

 

FY 2011/2012     OPERATING LOSS: $459.54 Million

 

FY 2012/2013     OPERATING LOSS: $366 Million

 

FY 2013/2014     OPERATING LOSS: $456 Million

 

FY 2014/2015     OPERATING PROFIT: $207.83 Million

 

FY 2015/2016     OPERATING PROFIT: $148.5 Million

 

FY 2011-2016     OPERATING LOSS: $925.21 Million

(these figures don't seem to PRECISELY line up with the graph, potentially due to changes in the YEN's Value? If these figures are inaccurate if someone could find more accurate figures that would be appreciated.)

 

 

I do think that this year will turn out to be quite profitable, while pokemon go probably won't cover the deficit directly, sales for other related products will also significantly improve, if Amazon is any indication, including the 3ds. Nostalgia is at a high, and Nintedo is fully capable of making a buck off it.



Bet with PeH: 

I win if Arms sells over 700 000 units worldwide by the end of 2017.

Bet with WagnerPaiva:

 

I win if Emmanuel Macron wins the french presidential election May 7th 2017.

Teeqoz on 16 July 2016
naruball said:
Teeqoz said:

This is false. They never announced Wii U hardware was being sold at a profit, that is a misconception from 2014 and it baffles me that people still believe that to be the case. What Nintendo actually said was that Wii U hardware wouldn't incur any more losses for that period, because they were sitting on a lot of unsold Wii U inventory after they shipped less than they expected. Since this also meant they would have to manufacture less Wii U units than expected, the revenue from already manufactured units (where the loss was incurred in an earlier period) would exceed the loss from manufacturing new Wii U units. Hardware still had a negative margin.

Is it though? Or are you simply referring to something different?

http://www.gamespot.com/articles/nintendo-continues-to-sell-wii-u-hardware-at-a-loss/1100-6412671/

I'm not sure what you mean? That link pertains to a statement from 2013. The statement I'm talking about that has been misinterpreted by some people was from 2014, made by Iwata.



Ck1x on 16 July 2016
Barkley said:
Ck1x said:

Sony is still close to 8 billion dollars in debt. Not sure how much of this is contributed to by their console division or their other divisions, but seeing as how Nintendo has none makes this thread very pointless overall...

Jesus christ, what is wrong with a lot of people on this forum. Why the hell does nintendo not being in debt make a disucssion about their financials this generation "very pointless" ridiculous. In no way does this thread say anything about "NINTENDO IS IN FINANCIAL TROUBLE OMG THEY'RE GOING BANKRUPT." This thread is inundated with Nintendo Fans taking it as an attack and illogically saying that discussing Nintendo's Operating Profit for the generation is pointless.

This isn't a financail contest thread, this isn't a Nintendo doom thread. This is a thread to discuss Nintendo's performance and operating profit during this generation. The fact that they have been operating at a profit the last couple of years does NOT make this thread irrelevant as some of said, THAT'S PART OF WHAT SHOULD BE DISCUSSED IN THE THREAD.

Nintendo's Financials in relations to other companies also does not make discussing THEIR financials irrelevant.

Because unless you own stock in the company or plan on buying some soon, it's a pretty pointless discussion in the midst of newfound success. It's one thing to discuss these matters when they were in the midst of their struggles and looking for a new direction business wise. No one keeps harping on Sony's bad years even though they're not in the clear from the previous generation of losses...

It's cherry picking a topic in the midst of a companies transition, that's all! Now if you wanted to discuss this after the NX launches and whatever else Nintendo has planned, that makes sense, but it seems pretty pointless right now. Nintendo didn't go the way of Sega after the abysmal WiiU, so they plan to regroup and try it again, why can't that be enough for some people...



Proxy-Pie on 16 July 2016

I'm willing to assume that the recent profits were small due to NX R&D, that's a safe assumption, right?



Barkley on 16 July 2016
Ck1x said:

Because unless you own stock in the company or plan on buying some soon, it's a pretty pointless discussion in the midst of newfound success. It's one thing to discuss these matters when they were in the midst of their struggles and looking for a new direction business wise. No one keeps harping on Sony's bad years even though they're not in the clear from the previous generation of losses...

It's cherry picking a topic in the midst of a companies transition, that's all! Now if you wanted to discuss this after the NX launches and whatever else Nintendo has planned, that makes sense, but it seems pretty pointless right now. Nintendo didn't go the way of Sega after the abysmal WiiU, so they plan to regroup and try it again, why can't that be enough for some people...

"it's a pretty pointless discussion in the midst of newfound success."

We are on a SALES website, that includes discussion of SALES and obviously the money generated by SAID SALES. This thread is to discuss the overall performance and operating profit of Nintendo this generation as it is soon coming to an end.

"It's one thing to discuss these matters when they were in the midst of their struggles"

Sorry but what??? So you can only talk about a company's financials when they are having hard times? And you're not allowed to discuss a company's overall performance during a generation?


"No one keeps harping on Sony's bad years" -  

This is discussing the CURRENT GENERATION.

 

"It's cherry picking a topic in the midst of a companies transition, that's all! Now if you wanted to discuss this after the NX launches and whatever else Nintendo has planned, that makes sense"

You literally just said "No one keeps harping on Sony's bad years" but now you want me to wait till the NX is around and then discuss Nintendo's "bad years" when they are succeeding with the NX.

 

Seriously stop, it's ridiculous to suggest that discussing a company's performance in the overall current generation is "IRRELEVANT" or "POINTLESS" they're turning a profit the last couple of years ? Well guess what, that's part of this generation so discuss that. Jesus...

I've not seen people behave so illogically because of brand loyalty. "SALES DISCUSSION IS POINTLESS" < You're ON VGCHARTZ