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Forums - Sales - Nintendo Profitability Analysis - FY Mar 2007 and FY Mar 2008 - Need Info

I don't understand most of this, but I appreciate your hard work.



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Great work as always and a good read. How much extra data are you able to derive from Nintendo statements about quarterly gains and decreases in major expense categories such as marketing, R&D, and so on? I'm curious what Nintendo's R&D expenditures look like given the technology in the Wii was dated when it was built.



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@kn

ill do it tomorrow.
but i know i saw the R&D number, and if i remember correctly, it was quite small.



@kn

R&D , Sales & Marketing costs as follows:

FY Mar 2007
R&D = 37,725 or approx. US$322 million
Sales & Marketing = 82,339 or US$703 million

FY Mar 2008
R&D = 37,001 or approx. US$323 million
Sales & Marketing = 113,977 or US$997 million

So Nintendo spends more in marketing than in R&D.
I'm not sure if that's good or bad.

But Nintendo results speak for themselves.



Whoa, I'd never guess they were spending $320+ million per year on R&D.



The rEVOLution is not being televised

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bumidan said:
@kn

R&D , Sales & Marketing costs as follows:

FY Mar 2007
R&D = 37,725 or approx. US$322 million
Sales & Marketing = 82,339 or US$703 million

FY Mar 2008
R&D = 37,001 or approx. US$323 million
Sales & Marketing = 113,977 or US$997 million

So Nintendo spends more in marketing than in R&D.
I'm not sure if that's good or bad.

But Nintendo results speak for themselves.

Where did you get these numbers?

 



My Mario Kart Wii friend code: 2707-1866-0957

maybe R&D involves designing new accessories, etc.

not just new console, or motion control or stuff like that.

as a %age of revenue, its only about 2 to 3%

Whereas MSFT spends about 15% of revenue on R&D



I just meant to ask if those numbers are explicitly in the reports. I never noticed them.



My Mario Kart Wii friend code: 2707-1866-0957

NJ5 said:
bumidan said:
@kn

R&D , Sales & Marketing costs as follows:

FY Mar 2007
R&D = 37,725 or approx. US$322 million
Sales & Marketing = 82,339 or US$703 million

FY Mar 2008
R&D = 37,001 or approx. US$323 million
Sales & Marketing = 113,977 or US$997 million

So Nintendo spends more in marketing than in R&D.
I'm not sure if that's good or bad.

But Nintendo results speak for themselves.

Where did you get these numbers?

 

From Nintendo FY Mar 2008 financial statements.

The higher number is the published number in millions of yen.

The US$ figure is derived from the average exchange rate - based on Nintendo's financials.

117.02 For FY end Mar 07

114.28 for FY end Mar 08

source: Nintendo Consolidated Financial Statements (dated Apr 24, 2008) - pg. 21

 



NJ5 said:
I just meant to ask if those numbers are explicitly in the reports. I never noticed them.

Which specific numbers are you asking about?  I can explain if you let me know.