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Forums - Sales - Nintendo makes $1 billion profit for Q1 08

Someone is sleeping on making a DS or Wii printer for your computer. I would so buy a printer that looks like the DS or the Wii, since they do print... money.



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wow



consoles i own ps12 gba ds gc wii

ookaze said:
Nintendo shouldn't outbid anybody.
This is what happens when 3rd parties don't support the leading platform correctly.
Nintendo was left alone on their own leading platform.
3rd parties everywhere just ended up owning themselves with their war of attrition, which actually affected them only.
Now it's too late. If MS 'buys' a developer, they both know what will happen.
Buying devs for them not to support the other loser can work, but when it's for not supporting the leader, it just doesn't. Both buyer and bought companies end up owning themselves.

Now all the 3rd parties can do is trip over themselves to catch up.

Exactly what I have been saying for a while.  If you look at weekly publisher totals Nintendo is always far far ahead of the other publishers.  And on top of money coming in from software they have money from hardware and accessories.  With big 3rd party publishers stubbornly refusing to release big games on Wii, Wii owners are left with nothing but Nintendo games to buy  (and whether PS360 fans admit it or not Wii owners buy games).  So with no competion for them from outside Nintendo made games continue to sell in vast numbers on Wii and continue to rake in mad profit for Nintendo.   

 



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astrosmash said:
mariozeldametroid said:
Wow. Just Wow. That's so amazing! I remember Nintendo having years in the Gamecube days where they made less money than what they made this quarter...

If the industry keeps growing, and Nintendo keeps growing like this, how long will it take for Nintendo to pass Microsoft as biggest software company of the world, and how long will it then take for them to become the world's biggest company?

 

First of all, MS netted $14 billion on revenue of $51 billion in fiscal 2007; both of these numbers increase substancially every year. (source: http://www.microsoft.com/msft/reports/ar07/staticversion/10k_fh_fin.html )

 

Second, MS isn't the biggest company in the world, or even close to it; by revenue (which is what you implied) its 117th; by market capitalization MS is 8th. MS has never been much higher than it is now when ranked by revenue, but I believe it was as high as 2nd before oil companies took over the market capitalization list. (sources: http://en.wikipedia.org/wiki/List_of_companies_by_revenue  http://en.wikipedia.org/wiki/List_of_corporations_by_market_capitalization )

 

http://en.wikipedia.org/wiki/List_of_companies_by_revenue

 

He didn't say biggest company, he said biggest software company.  Even then, I am not sure if M$ is the top dog.  They are debtless though, so all of their revenue goes to whatever they want.  Nintendo is cleaning house in the video game market though.  Good god.

 



1Billion in 1 qtr. Perhaps the only thing that sells better than Wii+DS is Gas.



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1 billion dollars in non-holiday quarter?!
Geez....I wonder how much they can make in holiday season...



JaggedSac said:
He didn't say biggest company, he said biggest software company.  Even then, I am not sure if M$ is the top dog.  They are debtless though, so all of their revenue goes to whatever they want.  Nintendo is cleaning house in the video game market though.  Good god.

 

 

 Yeah, I see that now. I think I know why I read something that wasn't there, but the fault was all mine.

 

Sorry mario.



koffieboon said:
BKK2 said:
What are "Inter-segment sales"? Japanese "Inter-segment sales" is where the vast majority of their operating income came from.

 

 Those seem to be sales from Nintendo of Japan towards their subsidiaries (so basically Nintendo of America and Nintendo of Europe). They aren't part of their consolidated figures.

(note - just thinking aloud here...)

Yeah, I figure something like:

"Games developed in Japan, are manufactured in Japan - and sales/profits go through Japan"

The other amounts are 3rd-party titles, maybe sold through Nintendo? Might explain high revenue, but tiny profits?

(might represent "manufacturing" revenues in various segments?)

...

Or maybe its the other way around:

 - NOA & NOE are treated like "3rd-party distributors"? - they collect the revenue, and pay NOJ for the products? Hence "inter-segment" sales?

 - that might explain the high revenues, and low margins in each region?

 - the 'third parties' is probably revenue collected from manufacturing by 3rd-parties - which explains why its "lowest" in Japan, and high in the US & Europe.

(when you release a DS or Wii title in Europe, you work with & pay NOE - not Nintendo Japan - so the money for production goes through them at some stage).

...

In the end - its the "sales to 3rd parties" that becomes the "Total consolidated revenue" - the other amount is just "internal transfers" between various branches of Nintendo.

What I find the most impressive about these figures:

 - on revenue of approx $4bn (US), Nintendo make profit of around $1bn (US).

That's a 25% profit ratio - very, very high.

(MS also make very high profit ratios - Sony on the other hand, was aiming to lift theirs from 3% to 5% over long term - I think they got it to around 4%)

 

 



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For comparison, Sony made just over $2 billion in net income from 2000-2006. Nintendo made half that in just a single quarter.

That's a net income per quarter ratio of 12:1.



The rEVOLution is not being televised

@Viper1: Slight correction - it's 14:1 if you meant 2000-2006 inclusive (seven years).

In this quarter, Nintendo's operating income is 22 times larger than SCE's (and also larger than Sony as a whole).

 



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