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Forums - Nintendo Discussion - Nintendo Forecasts Miss Estimates as Wii Sales Slow

NJ5 on 07 May 2009

Missing the estimates for profit was probably due to the strong Yen.

Other than that, the other "missed estimates" were regarding the forecast for the new year... as always Nintendo is conservative in their forecasts.

 



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NJ5 on 07 May 2009

@kowenicki: That's not what happened. Look at this excerpt:

Nintendo projected Wii console sales in the 12 months started April 1 will be little changed from 25.95 million last year, while those of software will probably increase 7.3 percent to 220 million titles.

Credit Suisse and Morgan Stanley estimated sales of 30.2 million and 29.1 million players respectively, with software sales of 292.5 million and 242.8 million titles. Nintendo forecast revenue will fall 2.1 percent to 1.8 trillion yen, the first annual drop in four years.


Nintendo forecasts sales of 26 million Wii consoles in the ongoing year, while CS/MS were expecting a forecast of 29.1-30.2 million. So this is just a number on a paper, which often gets raised later since Nintendo's initial estimates are usually conservative.

The article is a bit confusing, but from what I understood the only missed estimates which refer to actual results are on the profit side.

 



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blackstar on 07 May 2009

articles like this makes me wonder what sony is going through :S



NJ5 on 07 May 2009

The title of the article is very misleading... the only place where Wii sales are slowing is in Japan, and the article doesn't provide any new information on that.



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Killergran on 07 May 2009

From what I gather from the article, (correct me if I'm wrong,) it goes something like this:

Analysts: Nintendo is going to do better next year!
Nintendo: We are going to do about the same next year.
Stock: Drops.



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shams on 07 May 2009

All I see:

Companies losing money:
- MS, Sony, EA, THQ, ...

Companies making money:
- Nintendo



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mike_intellivision on 07 May 2009

I can’t imagine Nintendo will beat its earnings targets this year,” said Naoki Fujiwara, who helps oversee about $6.1 billion as chief fund manager at Tokyo-based Shinkin Asset Management Co. “As most of the sure-sell titles have already been released, I can’t see any possible hit game that can turn the situation around.”

This is the quote which troubles me the most.  How does a fund manager know what software that Nintendo has in store and what is a "sure sell" title. Wii Sports Resort and a new Zelda DS title are coming out this year -- that we know about. Most people also expect some big annoucements later in the year.

What this is all about is that Nintendo has been hurt worse than people expected by the global economic slowdown and the high value of the yen. So it is being very conservative in its predictions going forward. Meanwhile, analysts predicted X and it ended up Y. This shows that stock analysts are as reliable as video game analysts (they are all like Patcher).

For example, oil reserves increased less than expected yesterday, so the price of oil spiked by 5%.

Makes you wonder about the free market.

 

Mike from Morgantown

 

 

 

 



      


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Untamoi on 07 May 2009
shams said:
All I see:

Companies losing money:
- MS, Sony, EA, THQ, ...

Companies making money:
- Nintendo

 

MS made $3 billion profit last quarter and about $14 billion yearly profit.



patjuan32 on 07 May 2009

Untamoi,

He's talking about the Entertainment Division not Micorsoft as a whole.



If Nintendo is successful at the moment, it’s because they are good, and I cannot blame them for that. What we should do is try to be just as good.----Laurent Benadiba

 

NJ5 on 07 May 2009
mike_intellivision said:

Makes you wonder about the free market.

 

I think of it more as a casino.

 



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