If I'm Nintendo, I still wouldn't worry. I'd just look at Sony, laugh a bit, and get on with my life.

They need to sell 23 million consoles in 8 months. That's never going to happen, considering the Wii is selling less than 1 million/month. So until calendar year Q4 (FY Q3) begins, we might see Wii at 6 million units as a best case scenario, and that means 20 million consoles will have to be sold in 6 months. Do the math and you get that in order for them to achieve that 3.35 million Wii's/month will have to be sold.

Nintendo should have lowered their forecasts, there's no way they will reach them. Now the problem lies with what are investors going to do once the next quarterly reports come out and find out about those projections not happening.

The reason those forecasts are still high? The Wii will see a $50 price drop in september. When the console is under $200, sales will go back up.

@hibikir: Oh really, link for that assumption?

Wii would need to sell even better than last year, even with a pricecut, thats not plausible considering how it's trending so far.

And if you actually read my post, and find a way to fit it in your argument, that would be appreciated, instead of posting random baseless stuff.

Nintendo's numbers are vastly down from last year. We all knew that was coming, and I don't think anyone is surprised.

I do think it's important to point out, however, that last year Nintendo brought in a net income (profit) of $1.12 billion, on a total revenue of $2.60 billion. That's a single, non-holiday quarter. Nintendo turned a profit of roughly a dollar on every $2.50 they made in revenue. (Try comparing the return on investment to Nintendo's competitors in this industry - it's not pretty.) Did anyone think they could keep up those insanely good figures on a permanent basis? It simply was not possible to continue to perform at that level. The Nintendo finances this quarter are merely "good" instead of "spectacular."

While I realize this is dangerously close to spinning, I do think it's important we consider the context in which "down 60%" occurs.

Nintendo is finally going to have to do something to spur sales, which can only be a good thing for consumers. I'm not sure what they have planned (if anything) to actually meet their projections, but It will be interesting to see.

I'd assume they have a plan, if they're sticking to projections. Or perhaps they're waiting to see the impact Resort has on Q2 sales before they alter projections. I think some kind of price cut and bundling for both Wii and DS is likely.

It can be legitimate to bring up Sony and MS in comments provided the comment isn't trying to redirect the topic, but instead make a point regarding the topic. Its a bit of a gray area but provided a poster is behaving reasonably I think benefit of the doubt can be given. I'd rather let someone make their comment until it is apparent they are off-topic than cut them off and have to wonder if I am killing a legitimate point.  Giving the benefit of the doubt I can correct the problem later, cutting it off I cannot.

For now I'm just giving the thread the verbal warning to keep your comments related to Nintendo's Profits, but that doesn't mean you can't mention MS or Sony to make that point (just don't go on a tangent in the process).

No major games released in the last what 7 months?
During one huge finacial crisis around the world.

And yet 400 million in profit?

DAMN Nintendo sure is one hell of a company for making profit during those times.


Unlike "other" companies....

My take on this:

I think in the case of the Wii we're seeing a tripple interlinked phenomenon. Lol crazy huh?

1. The Wiis adoption rate has been skyhigh up until now and many of the normal 2nd, 3rd, 4th year sales have been bought forward because the Wii was so damn compelling right now.

2. The Wiis killer combinations are reaching a point of saturation. The Mario Kart + Wii Sports + Wii Play for $350 or Wii Fit + Wii for $340 ever green software have each used up a lot of their potential market. There are only so many people compelled by Wii Fit or Mario Kart or Wii Sports and the people whom value them the most have more likely bought a console than not. So either they need to lower the cost of entry to spur sales with either bundles or lower prices or they need to find a new killer game to reach untapped markets.

3. The recession as whole doesn't make people close their wallets, however it does make them more fiscally conservative. This means that someone is more likely to take a risk on a cheaper Wii than a more expensive Wii because a lot of the Wiis market is treading into territory which is unfamiliar with consoles. Its a double edged sword, they have nothing holding them back from buying a console but they may be more hesitant in moving forward with buying a console as they have never done so before. Lowering the price makes it a less risky choice for people and may help people who are on the fence otherwise its got to be software that engages non owners with owners (NSMB) so the people can try before they buy.