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[argon]

They cite falling demand for GC game sales (duh) and Revolution R&D. Full year forecast remains unchanged.

http://today.reuters.com/investing/financeArticle.aspx?type=marketsNews&storyID=2005-11-24T065919Z_01_T218730_RTRIDST_0_TECH-JAPAN-NINTENDO-URGENT.XML
http://quote.bloomberg.com/apps/news?pid=10000006&sid=aKDP7b_l8LFg&refer=home

Nov. 24 (Bloomberg) -- Nintendo Co., the world's biggest maker of handheld video games, said profit dropped 21 percent in the fiscal first half because of falling sales of its GameCube console and slower demand in the U.S.

Net income was 36.6 billion yen ($308 million) in the six months ended Sept. 30, compared with 46.4 billion yen a year ago, according to a statement filed to the Tokyo Stock Exchange today. The Kyoto-based company on Oct. 7 said in a preliminary earnings report that profit will be about 36 billion yen because of currency gains, more than the 19 billion yen it forecast earlier.

Nintendo, which dominated the game industry in the 1980s, has seen its market share shrink to about 14 percent for its GameCube machine as Sony Corp. and Microsoft Corp. introduced consoles with a hard drive, DVD player and Internet connection. Microsoft this week started sales of its Xbox 360 game console in the U.S., ahead of new machines from Sony and Nintendo next year.

Sales dropped 6.2 percent to 176.4 billion yen in the first half. Operating profit, or sales minus the cost of goods sold and administrative expenses, fell 51 percent to 19.6 billion yen.

For the full year, the company expects net income of 75 billion yen on sales of 500 billion yen. Both forecasts were unchanged from Oct. 7.

GBA forecast increased to 11 million. DS slightly lowered...

http://today.reuters.com/investing/financeArticle.aspx?type=marketsNews&storyID=2005-11-24T071209Z_01_TKV002387_RTRIDST_0_TECH-JAPAN-NINTENDO-SALES-URGENT.XML

The company said it now expected to sell 12 million DS units in the year to March instead of its previous forecast of 12.4 million. It expects to sell 2.4 million GameCubes versus its previous forecast of 2.8 million.

Nintendo increased its Game Boy Advance forecast slightly to 11 million unit sales from 10.2 million.

 

[M3wThr33]

Still a profit.

 

[Wario64]

Sticky this thread please, mods.

 

[MightyHedgehog]

:lol

 

[ThunderEmperor]

They cite falling demand for GC game sales (duh) and Revolution R&D. Full year forecast remains unchanged.

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aKDP7b_l8LFg&refer=home



GBA forecast increased to 11 million. DS slightly lowered...

http://today.reuters.com/investing/financeArticle.aspx?type=marketsNews&storyID=2005-11-24T071209Z_01_TKV002387_RTRIDST_0_TECH-JAPAN-NINTENDO-SALES-URGENT.XML

i hate how these anylayst and reports fail to state that nintendo is still making a killer profit specially in realtion to its competitors. ms 4 billion in hole and sony just staring to turn profit on ps2

 

[Pimpwerx]

This is gonna be fun. BTW, I've said this before. The handheld monopoly padded Nintendo's books pretty nicely. What happens when they no longer have 99% marketshare? The market hasn't doubled per se, so revenue (and thus profits) have to drop as a result. The change in DS forecast isn't dire though. Oh, but it is ironic that Sony is forecast to ship more units in the year than Nintendo now (I assume the 12M is shipped and not sold). PEACE.

 

[mj1108]

i hate how these anylayst and reports fail to state that nintendo is still making a killer profit specially in realtion to its competitors. ms 4 billion in hole and sony just staring to turn profit on ps2

It doesn't matter. Nintendo is still teh d00m3d -- according to GAF armchair analysts.

 

[TurtleSnatcher]

i like how gba is outselling there initial forecasts :lol

 

[Guy]

6 billion.

 

[cvxfreak]

They cut DS sales by 400,000? That's not a hell of a whole lot.

 

[Late Stage Marxist]

oh no! my nbot BUT TEH PROPHET!! argument is slipping away

 

[speedpop]

I blame Australia.

 

[Link]

i hate how these anylayst and reports fail to state that nintendo is still making a killer profit specially in realtion to its competitors. ms 4 billion in hole and sony just staring to turn profit on ps2

What? Sont started turning a profit on the PS2 years ago.

 

[M3wThr33]

What? Sont started turning a profit on the PS2 years ago.

I remember a press release on it. Wasn't it 9 months or so? I remember it came less than a year after one of the launches (US or Japan) and was made in September.

 

[cvxfreak]

Funny how Nintendo lowered DS and GC sales combined by 800,000 and raised GBA sales by 800,000.

But in the end, probably thanks to Japan and now Europe, they're selling more DS systems this year than GBAs.

 

[Sho Nuff]

Nintendo is still #1 in the HEARTS OF GAMERS!!!!!!

 

[h1nch]

if sony is just now turning a profit does that mean the gc is still losing money? i know nintendo makes loads of cash from handhelds and their various other franchises, but i can't imagine the gc earning any profit with its smaller user base. or do they not lose money on each console sold like sony did/does? im not sure how all that stuff works. ive been pretty disappointed with the gamecube and nintendo in general, but i might start stockpiling gc games as they drop in price with the next gen systems coming.

 

[mj1108]

Funny how Nintendo lowered DS and GC sales combined by 800,000 and raised GBA sales by 800,000.

But in the end, probably thanks to Japan and now Europe, they're selling more DS systems this year than GBAs.

Then if the DS sells more than 12 million, they can brag about it selling more than expectations.

 

[GhaleonEB]

Sticky this thread please, mods.

Touche! :lol

 

[Monk]

I am kind of stunned at this news. 21% drop, wow. For a company that has consistently good profits over the years, this must be devastating for its shareholders.

Wonder if i could buy some shares for cheap...

 

[DCharlie]

*head in hands*

 

[Link]

if sony is just now turning a profit does that mean the gc is still losing money? i know nintendo makes loads of cash from handhelds and their various other franchises, but i can't imagine the gc earning any profit with its smaller user base. or do they not lose money on each console sold like sony did/does? im not sure how all that stuff works. ive been pretty disappointed with the gamecube and nintendo in general, but i might start stockpiling gc games as they drop in price with the next gen systems coming.

The GC lost very little money per unit even when it launched. (I believe it was something like $24.) Nintendo is notorious for being cost-conscious. Also remember that since Nintendo games are the biggest sellers on Nintendo systems, they make a lot off software sales.

In the end, while their smaller userbase limits their profits, it doesn't cause them to lose money.

 

[GhaleonEB]

The GC lost very little money per unit even when it launched. (I believe it was something like $24.) Nintendo is notorious for being cost-conscious. Also remember that since Nintendo games are the biggest sellers on Nintendo systems, they make a lot off software sales.

In the end, while their smaller userbase limits their profits, it doesn't cause them to lose money.

They're kind of the Apple of the gaming industry. Increasingly niche, but boy do they milk their fans for cash.

 

[Oblivion]

The GC lost very little money per unit even when it launched. (I believe it was something like $24.) Nintendo is notorious for being cost-conscious. Also remember that since Nintendo games are the biggest sellers on Nintendo systems, they make a lot off software sales.

In the end, while their smaller userbase limits their profits, it doesn't cause them to lose money.

Actually, I read an article that said Nintendo made profits on the GC hardware from day 1. It wasn't until the first price drop to $99 that Nintendo said they were losing money, but even then it was only in the single digits. Are they losing more money on the GC now? That I don't know.

 

[cvxfreak]

Actually, I read an article that said Nintendo made profits on the GC hardware from day 1. It wasn't until the first price drop to $99 that Nintendo said they were losing money, but even then it was only in the single digits. Are they losing more money on the GC now? That I don't know.

Probably not too much if they're bundling MP7 and a spare controller with it for the holidays.

 

[Link]

I'm fairly certain that I remember reading they lost money on GC's at launch. It was a big deal because it was the first time ever they would be taking a loss on hardware.

I'm not sure if they took a loss when they dropped it to $99, but I doubt they are still losing anything on it now.

 

[Chittagong]

Well holograms aren't exactly free to develop.

 

[XMonkey]

I am kind of stunned at this news. 21% drop, wow. For a company that has consistently good profits over the years, this must be devastating for its shareholders.

Wonder if i could buy some shares for cheap...

Overreact much? This news isn't that bad. Call the news channels when Nintendo stops making profits year over year.

 

[ziran]

I am kind of stunned at this news. 21% drop, wow. For a company that has consistently good profits over the years, this must be devastating for its shareholders.

Wonder if i could buy some shares for cheap...

the 21% drop is year on year and net income has actually increased above estimates (19 billion yen to 36 billion yen), from foreign exchange gains due to a weaker than expected yen. net without foreign exchange gains has even increased (19 billion yen to 19.6 billion yen).

nintendo still expects to make a 75 billion yen (~$630 million) profit for the financial year so things are still very prosperous for mario and pals.

 

[Oblivion]

I'm fairly certain that I remember reading they lost money on GC's at launch. It was a big deal because it was the first time ever they would be taking a loss on hardware.

I'm not sure if they took a loss when they dropped it to $99, but I doubt they are still losing anything on it now.

Well, here's the article I was talking about:

http://nintendoinsider.com/site/EEEZuAypVuTuOJPzyb.php

In the final corner, Nintendo has it much better. When the system wars began, Nintendo GameCube was actually making money for each system sold, as Nintendo didn’t bother with all the extra non-gaming functions of its competitors, like DVD movie playback. The system was still making Nintendo money at $150, and it wasn’t until its $99 price tag that it was estimated Nintendo was losing money – but only in the single digits.

 

[Link]

Well, maybe I'm wrong then. I thought I remembered reading otherwise, but that was four years ago, so who knows.

 

[radioheadrule83]

Theres also a quote from Beth Llewelyn or Perrin Kaplan at IGN that verifies that too.

The Gamecube is profitable. Even if they only sold a few titles per GCN (which they have easily exceeded), then they'd do it. It just isnt as profitable (or as big a deal) as the GB empire.

The GBA/M line is still going strong incidentally. Have you people been missing NPDs?

 

[monkeyrun]

i hate how these anylayst and reports fail to state that nintendo is still making a killer profit specially in realtion to its competitors. ms 4 billion in hole and sony just staring to turn profit on ps2

it did state that the decrease in profit is mostly due to strong Yen, they just prefer to put the negative on the headline.

 

[ThunderEmperor]

it did state that the decrease in profit is mostly due to strong Yen, they just prefer to put the negative on the headline.

not you dude

 

[Diffense]

*trying to care*

 

[Shaheed79]

Man you people cannot fucking read. Their making almost exactly as much as they've been making the past couple of years and the yearly forecast remains unchanged.

 

[Shaheed79]

edit:dp

 

[Deleted member 1235]

The company said it now expected to sell 12 million DS units in the year to March instead of its previous forecast of 12.4 million. It expects to sell 2.4 million GameCubes versus its previous forecast of 2.8 million.

Nintendo increased its Game Boy Advance forecast slightly to 11 million unit sales from 10.2 million.

so now nintendo is going to sell exactly the same amount of THINGS, but the types of THINGS are slightly different?

anyone know how much profit nintendo makes on each type of hardware?

 

[Mr_Moogle]

I blame Australia.

:lol

Yes well its true that the Gamecube hasn't done well here. Outside of handhelds, Nintendo of Australia is virtually non-existent. But I really cant complain. I still get all the cube games I want at generally low prices.

I hope Nintendo dont just give up on Australia. The DS has done really well here with a very strong launch. Hopefully they can continue this trend with the Revolution. They will need to be aggressive if they wanna get through to the average aussie boofhead.

 

[Juice]

:lol

Yes well its true that the Gamecube hasn't done well here. Outside of handhelds, Nintendo of Australia is virtually non-existent. But I really cant complain. I still get all the cube games I want at generally low prices.

I hope Nintendo dont just give up on Australia. The DS has done really well here with a very strong launch. Hopefully they can continue this trend with the Revolution. They will need to be aggressive if they wanna get through to the average aussie boofhead.

Boofhead?

 

[sonycowboy]

i hate how these anylayst and reports fail to state that nintendo is still making a killer profit specially in realtion to its competitors. ms 4 billion in hole and sony just staring to turn profit on ps2

:lol :lol :lol :lol :lol :lol

 

[bycha]

so now nintendo is going to sell exactly the same amount of THINGS, but the types of THINGS are slightly different?

anyone know how much profit nintendo makes on each type of hardware?

We know it's making $50 from $100 GBA micro, it's probably making half of that with sp, there's info that GC is sold even. DS is probably sold even too.

 

[norinrad21]

6 billion.

close to 8 last i heard

 

[Calidor]

seems over for Nintendo

 

[nubbe]

How much could Nintendo lift in bank loans and new stock issuing? 50 billion?

 

[Skin]

seems over for Nintendo

Not really...

Btw, are those your kids in your avatar? One of the cutest things I ever saw.

 

[elostyle]

So they made less money than last year but more than they expected?

 

[Scrow]

Nintendo is still #1 in the HEARTS OF GAMERS!!!!!!

<3

wub

Hopefully they can continue this trend with the Revolution. They will need to be aggressive if they wanna get through to the average aussie boofhead.

that just aint going to happen. hopefully Nintendo can get through to a new market in Australia. Sony and MS will own aussie boofheads now and forever.

 

[Culex]

So they made less money than last year but more than they expected?

Doesn't sound like the apocalypse to me.

 

[ziran]

So they made less money than last year but more than they expected?

yes.

~$143 million more than expected.