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Forums - Sales Discussion - Wii Weekly Sales - How Long Before You Consider Ninty In Trouble?!!

Garnett on 09 July 2009

When the 360/PS3 start outselling it.



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Ail on 09 July 2009
Viper1 said:
metalmonstar said:
Ail said:
metalmonstar said:
Nintendo makes a profit on each console sold. Also Nintendo still gets a lot of third party support which is even more money for the company. Nintendo could stop selling completely and this would still be a good generation for them.

Personally though I would like to see Nintendo stay above 200K a week. I feel that it is under performing and Nintendo needs to stimulate growth.

It's a lot more complex than that.

General Motors makes a profit on every car sold too and they lost 30 billion$ last year...

Nintendo situation isn't the same at all, but unsold console sitting in warehouses do cost a lot.

General expectations would be that Nintendo didn't slow down production as they were forecasting 26 million Wii sold so now they have a lot of unsold consoles starting to pile up.

This is why a price cut is likely, it's cheaper in the end to cut the price and clean the inventories than sit on a huge pile of unsold consoles ( especially as console production costs tend to go down over time, you don't want to be selling the next two years consoles that were produced this year as producing them later on would have resulted in cheaper production costs for those consoles..)

Well if Nintendo has inventory issues then they were in trouble already. Let's not forget that having a couple thousand extra cars can cost billions while have a couple thousand extra wiis won't.

I doubt Nintendo has too many issues with inventory. Generally they are pretty conservative and tend to drop their predictions anyway. I am sure they see the trends and know not to make excess consoles. They probably won't release a prediction decrease for some time though due to not wanting to worry share holders.

 

Finally even if Nintendo failed to sell any consoles and remained stubborn about its shippment, they would at worse lose 6.5 billion dollars. If I remember the financial report that is about what they made last year. So they would be in the negatives but it wouldn't be that drastic. That is the most extreme case anyway. Profits will probably be down but I can't see them being in the red.

 

By my calculations, the worst they can do is be 3 million under their projection.  Based on speculative manufacturing costs, that would equal out to just $500 million.   Considering they'll still have almost $5 billion in sales, they can eat the $500 million if it comes to that.

But it won't have to as they'll still hit their projected target.


I would be interested to know what you are projecting them to sell to come so close to their target.

Right now my best guess is they will miss their projections by 5 million units...( they might come closer to 4 or 3 millions if they stuff the channels in Q1 2010, as the channels were not that full at the end of Q1 2009.



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

N.Genckel on 10 July 2009

The Wii will never be in trouble. This generations sales war is over.



Check out my DS site.

Kantor on 10 July 2009

Wow, messed up formatting. The quote is meant to be at the top. Anyway, the Wii is already under 200k. I would say 170k.

Actually, everything is low this week. Except the handhelds. And wtf @ PS3 numbers?

Carl2291 said:
gebx will not be amused!

Anyway, anything under 200k.
169,209 55,138 132,600 356,947
81,308 24,240 87,747 193,295
32,789 34,861 53,998 121,648
48,668 5,303 59,713 113,684
34,633 10,858 44,749

90,240

 

 

 


(Former) Lead Moderator and (Eternal) VGC Detective

txrattlesnake on 10 July 2009

They're still the number one of the big three consoles and they haven't even pulled one price cut yet; however, it does appear that the Wii may be reaching market saturation at its current price.  Did they really increase the price of the Wii in the UK earlier this year that might be one thing slowing them down in others.  But when you're seling a console that is mainly made of last gen tech for double or more of what it costs to make it and you're still selling more than the two consoles with the fancier tech, you're still making a sizeable profit.

 

Off Topic:  Surprises me that after weeks, and months, and years of never failing to catch on anywhere except Japan, the PSP is the third leading video game system worldwide for the week.



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Aion on 10 July 2009

Next year probably, the 360 might come in first.



 

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Samus Aran on 10 July 2009
Garnett said:

When the 360/PS3 start outselling it.