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Forums - Nintendo - Nintendo's First-Quarter Profit Rises Fivefold on Wii, DS Sales

FishyJoe on 25 July 2007
johnsobas said:
3.43 million, i'm assuming that is US only right? Doesn't include other NA territories i think. Looks like vgcharts is quite accurate.

No, that's WW for Apr-Jun 07.



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DarkNight_DS on 25 July 2007
johnsobas said:
3.43 million, i'm assuming that is US only right? Doesn't include other NA territories i think. Looks like vgcharts is quite accurate.
It means they shipped and delivered 3.43 million consoles between April 1st to June 30th.
 
Edit: Doh! FishyJoe beat me to it!  JohnLucas should start laughing... he'll be DAMN close. 

 



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

Bodhesatva on 25 July 2007
Sqrl said:
Bodhesatva said:
Sqrl said:
"Sony earlier this month offered a discount on the PlayStation 3 and Microsoft Corp. said it's considering a price cut for the Xbox 360 to catch up with Nintendo."

MS clearly doesn't understand that they are not really competing with the Wii they are competing with the PS3. It's that simple, the Wii is targeting one demographic heavily and the PS3/360 are targeting another. There is obviously overlap in the appeal of the consoles but by in large that is the case.

 

Regardless, the 360 could use a price cut soon.


Just out of curiosity, what's the specific demographic the Wii is targeting, according to you?


Perhaps my wording was poor. I didn't mean to imply that the wii was only targeting one demographic but that its focus was on different demographic segments than the PS3/360. And the reason I marganlize the overlap is not because it doesn't appeal to the traditional gamer segments but because I think those segments are largely getting a Wii plus another console. So in that regard they aren't directly competing since that segment is choosing both.


 Yep, definitely confused me, thanks for the clarification.



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FishyJoe on 25 July 2007

More info:

http://blogs.mercurynews.com/aei/2007/07/nintendo_ups_forecasts_again.html

The news at Nintendo just keeps getting better. The Kyoto, Japan-based company said that it is revising its Wii sales forecast for the fiscal year that ends March 31, 2008, to 16.5 million from a previous forecast of 14 million consoles shipped. Wii software is expected to hit 72 million units shipped, compared with an earlier forecast of 55 million units. The forecast to the DS was increased to 26 million from 22 million earlier, while DS software is expected to ship 140 million units, compared to 130 million earlier.

Nintendo Co., Ltd., today announced consolidated first-quarter financial results (*see attached) for the three-month period between April and June 2007, highlighted by revised upward annual forecasts in hardware and software shipments for the popular Wii and Nintendo DS game systems.

The company had substantial increases in consolidated net sales, operational, recurring and net profits as compared to the same reporting period one year ago thanks to robust sales of Wii and Nintendo DS hardware and software.

Consolidated financial results for April-June 2007 in millions of yen:

                    April-June 2007     April-June 2006     % change
Net Sales                   340,439             130,919        160.0
Operating Income             90,631              28,802        214.7
Recurring Profit            131,449              32,670        302.3
Net Income                   80,251              15,551        416.0

Additional highlights of the report include:
  · Nintendo boosted projections for shipments of Wii and Nintendo DS hardware and software for the fiscal year ending March 31, 2008. Nintendo’s consolidated shipments reflect sales to distributors and retailers worldwide.
       o The forecast for Wii hardware shipments increases to 16.5 million from a previous forecast of 14 million, while Wii software increases to 72 million from a previous forecast of 55 million.
       o The forecast for Nintendo DS hardware shipments increases to 26 million from a previous forecast of 22 million, while Nintendo DS software increases to 140 million from a previous forecast of 130 million.
       o In the unit shipment results for both Wii and Nintendo DS, bundles are counted as separate pieces of hardware and software. When forecasting unit shipments, the hardware and software results for past periods are included as separate pieces, but future bundles are counted as hardware only.
  · Nintendo announced worldwide sales of Wii hardware reached 9.27 million units at the end of June 2007. Sales of Nintendo DS hardware reached 47.27 million worldwide at the end of June 2007.
  · Upward revisions made to sales, shipments and profit forecasts are due to expected continued robust sales of Wii and Nintendo DS.
Revised consolidated financial forecasts in millions of yen:

Half-Year Forecast            Original  Modified  % Change
Net Sales                      460,000   640,000     +39.1
Operating Income                85,000   160,000     +88.2    
Recurring Profit                85,000   180,000    +111.8
Net Income                      50,000   105,000    +110.0

Full-Year Forecast            Original  Modified  % Change
Net Sales                    1,140,000 1,400,000     +22.8
Operating Income               270,000   370,000     +37.0
Recurring Profit               290,000   410,000     +41.4
Net Income                     175,000   245,000     +40.0

Nintendo has also modified expected exchange rates to 118 yen/dollar and 155 yen/euro from 115 yen/dollar and 150 yen/euro.

The expected annual dividend per share is now 960 yen.

 



DarkNight_DS on 25 July 2007
FishyJoe said:

More info:

http://blogs.mercurynews.com/aei/2007/07/nintendo_ups_forecasts_again.html

The news at Nintendo just keeps getting better. The Kyoto, Japan-based company said that it is revising its Wii sales forecast for the fiscal year that ends March 31, 2008, to 16.5 million from a previous forecast of 14 million consoles shipped. Wii software is expected to hit 72 million units shipped, compared with an earlier forecast of 55 million units. The forecast to the DS was increased to 26 million from 22 million earlier, while DS software is expected to ship 140 million units, compared to 130 million earlier.

Nintendo Co., Ltd., today announced consolidated first-quarter financial results (*see attached) for the three-month period between April and June 2007, highlighted by revised upward annual forecasts in hardware and software shipments for the popular Wii and Nintendo DS game systems.

The company had substantial increases in consolidated net sales, operational, recurring and net profits as compared to the same reporting period one year ago thanks to robust sales of Wii and Nintendo DS hardware and software.

Consolidated financial results for April-June 2007 in millions of yen:

April-June 2007 April-June 2006 % change
Net Sales 340,439 130,919 160.0
Operating Income 90,631 28,802 214.7
Recurring Profit 131,449 32,670 302.3
Net Income 80,251 15,551 416.0

Additional highlights of the report include:
· Nintendo boosted projections for shipments of Wii and Nintendo DS hardware and software for the fiscal year ending March 31, 2008. Nintendo’s consolidated shipments reflect sales to distributors and retailers worldwide.
o The forecast for Wii hardware shipments increases to 16.5 million from a previous forecast of 14 million, while Wii software increases to 72 million from a previous forecast of 55 million.
o The forecast for Nintendo DS hardware shipments increases to 26 million from a previous forecast of 22 million, while Nintendo DS software increases to 140 million from a previous forecast of 130 million.
o In the unit shipment results for both Wii and Nintendo DS, bundles are counted as separate pieces of hardware and software. When forecasting unit shipments, the hardware and software results for past periods are included as separate pieces, but future bundles are counted as hardware only.
· Nintendo announced worldwide sales of Wii hardware reached 9.27 million units at the end of June 2007. Sales of Nintendo DS hardware reached 47.27 million worldwide at the end of June 2007.
· Upward revisions made to sales, shipments and profit forecasts are due to expected continued robust sales of Wii and Nintendo DS.
Revised consolidated financial forecasts in millions of yen:

Half-Year Forecast Original Modified % Change
Net Sales 460,000 640,000 +39.1
Operating Income 85,000 160,000 +88.2
Recurring Profit 85,000 180,000 +111.8
Net Income 50,000 105,000 +110.0

Full-Year Forecast Original Modified % Change
Net Sales 1,140,000 1,400,000 +22.8
Operating Income 270,000 370,000 +37.0
Recurring Profit 290,000 410,000 +41.4
Net Income 175,000 245,000 +40.0

Nintendo has also modified expected exchange rates to 118 yen/dollar and 155 yen/euro from 115 yen/dollar and 150 yen/euro.

The expected annual dividend per share is now 960 yen.

 


 That's 22+ Million Wii's shipped and delivered by March 31st 2008!



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

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Sqrl on 25 July 2007
Bodhesatva said:
Sqrl said:
Bodhesatva said:
Sqrl said:
"Sony earlier this month offered a discount on the PlayStation 3 and Microsoft Corp. said it's considering a price cut for the Xbox 360 to catch up with Nintendo."

MS clearly doesn't understand that they are not really competing with the Wii they are competing with the PS3. It's that simple, the Wii is targeting one demographic heavily and the PS3/360 are targeting another. There is obviously overlap in the appeal of the consoles but by in large that is the case.

 

Regardless, the 360 could use a price cut soon.


Just out of curiosity, what's the specific demographic the Wii is targeting, according to you?


Perhaps my wording was poor. I didn't mean to imply that the wii was only targeting one demographic but that its focus was on different demographic segments than the PS3/360. And the reason I marganlize the overlap is not because it doesn't appeal to the traditional gamer segments but because I think those segments are largely getting a Wii plus another console. So in that regard they aren't directly competing since that segment is choosing both.


Yep, definitely confused me, thanks for the clarification.


 Yeah sorry its been a long day here for me. Posting is my respite from chaos, but I will spare you the story.



To Each Man, Responsibility
Lingyis on 25 July 2007

it's impressive how good vgchartz is!

5.84+3.43=9.27, shipped until june, presumably all arrived in destination and sold.
9.49 is vgchartz number. 9.49-9.27=0.22 for july.

that's likely bang on--shipment takes 2-3 weeks i imagine from asia to US and perhaps longer to europe. but in japan, it's likely
looks like in terms of Wii's SHIPPED vs 360 SOLD, July is the crossover month. and since every wii shipped is guaranteed to be sold... you can kind of make an argument wii is crossing the 360 THIS month. partial victory for john lucas?





the Wii is an epidemic.

OriGin on 25 July 2007

Interestingly Nintendo have raised their Wii Forecast from 22m at the end of Mar 2008 to 25m.



Sqrl on 25 July 2007

If you couple these two pieces of information together .....

 - "3.43 million Wii sold, 9.27 million LTD (June)"

- "The forecast for Wii hardware shipments increases to 16.5 million from a previous forecast of 14 million"

 

I believe you end up seeing a trend that

  •  Q1:  3.43
  •  Q2: ~3.5
  •  Q3: x
  •  Q4: ~3.5

Then we get something like this...

3.43 + 3.5 + 3.5 + x = 16.5

Which ultimate simplifies to x =  6.07

So I guess what I am asking (because I am by no means sure of this) does this confirm that the Wii will have significantly boosted hardware sales over X-mas (aka normal holiday sales) as opposed to same old sales due to supply contraints? 
To Each Man, Responsibility
FishyJoe on 25 July 2007

More amazing is they've uppsed the Wii's software numbers by 17 million. That's where most of the profit comes from.