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

some Nintendo fans are really obsessed with Sony according to some comments in this thread. We didn't even reached the second page before this thread turned from "Nintendo have not made an operating profit overall this generation" to "Sony vs Nintendo" to "Sony lost more money" with a bit of "this thread is pointless"




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Sprash said:
some Nintendo fans are really obsessed with Sony according to some comments in this thread. We didn't even reached the second page before this thread turned from "Nintendo have not made an operating profit overall this generation" to "Sony vs Nintendo" to "Sony lost more money" with a bit of "this thread is pointless"


Yeah I don't get it, saying things like "but they're making money now so thread is pointless" when the figures of them making money are literally in the OP. Those figures are their to be discussed too. Or that discussing a console generation is "cherry picking"... the entire industry so far has been defined by generations as set periods of time for products... I don't even...

Shit be CRAZY in this shiz niz.



OMG! Nintendo need to go third party right NOW! Release all their games on PS4. That's the only way. How comes no one suggested this yet?



 

 

We reap what we sow

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.

Nintendo at launch said Nintendo making small loss that is turning in profit with just one sold game, its well known fact that manufacture cost of same console go down with time, Wii U basically still have launch price, so they definitely making profit on Wii U hardware.



Miyamotoo 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.

Nintendo at launch said Nintendo making small loss that is turning in profit with just one sold game, its well known fact that manufacture cost of same console go down with time, Wii U basically still have launch price, so they definitely making profit on Wii U hardware.

Actually Reggie corrected that comment to "more than one unit of software". And the Wii U has received a 50$ pricecut since then. The Wii U also used dated tech, which means a mature process where there's not much more to make more efficient, so it won't have seen the same reduction in price that is normal for consoles. Using dated tech also impacts them in another way, because they are losing out on economy of scale benefits. There aren't many other products relying on the same manufacturing process, so costs will be high to convince foundries to keep a dated manufacturing process alive when there are newer, much more efficient manufacturing processes in existence (which is how the cost of electronics are reduced in the first place. Die shrinks.)

 

It's not like technology magically decreases in price automatically. It's all in relation to cost of production, and the Wii U wasn't well positioned to benefit from any of the processes that normally drive down costs.



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Teeqoz said:
Miyamotoo said:

Nintendo at launch said Nintendo making small loss that is turning in profit with just one sold game, its well known fact that manufacture cost of same console go down with time, Wii U basically still have launch price, so they definitely making profit on Wii U hardware.

Actually Reggie corrected that comment to "more than one unit of software". And the Wii U has received a 50$ pricecut since then. The Wii U also used dated tech, which means a mature process where there's not much more to make more efficient, so it won't have seen the same reduction in price that is normal for consoles. Using dated tech also impacts them in another way, because they are losing out on economy of scale benefits. There aren't many other products relying on the same manufacturing process, so costs will be high to convince foundries to keep a dated manufacturing process alive when there are newer, much more efficient manufacturing processes in existence (which is how the cost of electronics are reduced in the first place. Die shrinks.)

 

It's not like technology magically decreases in price automatically. It's all in relation to cost of production, and the Wii U wasn't well positioned to benefit from any of the processes that normally drive down costs.

Wii u manufacturing cost must have not been decreased, given that its the only Nintendo console that hasn't gotten any price drop ( And for god's sake, don't talk about the 349$->299, because it's not real price drop, white 8gb version got discontinued and the black 32gb  got its price, there was all along a 299$ costing wii u  ;) ) , their reluctance to cut the price  must imply that wii u manufacturing cost its still the same!

The only solution would be to drop the tablet controller which adds 80$ in the manufacturing cost, but now its late!



Miyamotoo said:

People don't understand that bottom of line is profit at end, not operating income.

And if we look profit, things are quite difrent.

FY3/2012

 FY3/2013 FY3/2014 FY3/2015 FY3/2016
Net sales 647,652 635,422 571,726 549,780 504,459
Operating income -37,320 -36,410 -46,425 24,770 32,881
Ordinary income -60,863 10,482 6,086 70,530 28,790
Profit attributable to owners of parent -43,204 7,099 -23,222 41,843 16,505
Net income per share (yen) -337.86 55.52 -183.59 353.49 137.40
Total assets 1,368,401 1,447,878 1,306,410 1,352,944 1,296,902
Total net assets 1,191,025 1,227,520 1,118,438 1,167,556 1,160,901
Capital adequacy ratio 87.0% 84.8% 85.6% 86.3% 89.5%
Net assets per share (yen) 9,313.15 9,598.22 9,447.00 9,862.52 9,662.73

https://www.nintendo.co.jp/ir/en/finance/2015_04.html

 

@ Miyamotoo, what were you waiting for... these kind of threads & others everytime something positive comes in the direction of Nintendo... some people go crazy!!!

                                    POKEMON GO =



https://www.youtube.com/watch?v=n29CicBxZuw

01001011 01101001 01110011 01110011 00100000 01101101 01111001 00100000 01110011 01101000 01101001 01101110 01111001 00100000 01101101 01100101 01110100 01100001 01101100 00100000 01100001 01110011 01110011 00100001

Teeqoz said:
Miyamotoo said:

Nintendo at launch said Nintendo making small loss that is turning in profit with just one sold game, its well known fact that manufacture cost of same console go down with time, Wii U basically still have launch price, so they definitely making profit on Wii U hardware.

Actually Reggie corrected that comment to "more than one unit of software". And the Wii U has received a 50$ pricecut since then. The Wii U also used dated tech, which means a mature process where there's not much more to make more efficient, so it won't have seen the same reduction in price that is normal for consoles. Using dated tech also impacts them in another way, because they are losing out on economy of scale benefits. There aren't many other products relying on the same manufacturing process, so costs will be high to convince foundries to keep a dated manufacturing process alive when there are newer, much more efficient manufacturing processes in existence (which is how the cost of electronics are reduced in the first place. Die shrinks.)

 

It's not like technology magically decreases in price automatically. It's all in relation to cost of production, and the Wii U wasn't well positioned to benefit from any of the processes that normally drive down costs.

Pls link for that Reggie statment.

That isn't really price cut, Wii U had price of $300-350 and they they just discounten Basic model and we have had Premium at price of $300, and ofical price is still $300. Definatly some part of cost of console were dont afte few years, not all of them offcourse.



Miyamotoo said:
Teeqoz said:

Actually Reggie corrected that comment to "more than one unit of software". And the Wii U has received a 50$ pricecut since then. The Wii U also used dated tech, which means a mature process where there's not much more to make more efficient, so it won't have seen the same reduction in price that is normal for consoles. Using dated tech also impacts them in another way, because they are losing out on economy of scale benefits. There aren't many other products relying on the same manufacturing process, so costs will be high to convince foundries to keep a dated manufacturing process alive when there are newer, much more efficient manufacturing processes in existence (which is how the cost of electronics are reduced in the first place. Die shrinks.)

 

It's not like technology magically decreases in price automatically. It's all in relation to cost of production, and the Wii U wasn't well positioned to benefit from any of the processes that normally drive down costs.

Pls link for that Reggie statment.

That isn't really price cut, Wii U had price of $300-350 and they they just discounten Basic model and we have had Premium at price of $300, and ofical price is still $300. Definatly some part of cost of console were dont afte few years, not all of them offcourse.

http://www.siliconbeat.com/2012/11/16/12262/

 

That's the full interview, and if you scroll down to the bottom of the article, you'll se the update where they say that a Nintendo PR rep (sorty, it wasn't Reggie himself) later corrected them and that Reggie's original statement was actually inaccurate.



Last five years are over. Wii U is over. 

Pokemon GO ended that era with a resounding thud. Nintendo's market cap will exceed the entire Sony corporation in a few days from the looks of it and their stock price is going right back to where it was in 2008/2009 at least.

A new era is beginning for Nintendo, one in which they likely will return to making very large profits thanks to mobile alone. If NX wants to chip in it's almost like an optional thing at this point.