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Nintendo lowers earnings forecast
http://www.reuters.com/news_article....toryID=1523173
TOKYO, Oct 2 (Reuters) - Shares in Nintendo Co Ltd 7974.OS , the world's second-largest home videogame maker, took a battering on Wednesday after it trimmed earnings forecasts and its shipment target for game consoles. Nintendo's shares ended down 6.96 percent at 12,840 yen, underperforming Tokyo's benchmark Nikkei average .N225 , which fell 1.23 percent. The maker of the GameCube home videogame system announced late on Tuesday that it had slashed its recurring profit forecast for April-September by 77 percent due to an appraisal loss on its hefty foreign-currency-based assets. |
I'd hardly consider that reason for them to get out of the console market.
It's a reduction of a profit prediction. It doesn't mean they're losing money, they're just not making as much as they predicted. The $183 million they got from Rare should help offset it a little bit. Metroid and RE0 should improve sales as well. Plus the fact that it's mostly due to the devaluation of the Yen (something that is affecting every Japanese company) I don't see how it will have any impact on Nintendo leaving the console market. |
How many "Japanese Countries" are there?
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Originally posted by Groucho How many "Japanese Countries" are there? I meant company. |
Maybe Microsoft will buy them next rotfl
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Originally posted by Josh Hinkle I'd hardly consider that reason for them to get out of the console market. It's a reduction of a profit prediction. It doesn't mean they're losing money, they're just not making as much as they predicted. The $183 million they got from Rare should help offset it a little bit. Metroid and RE0 should improve sales as well. Plus the fact that it's mostly due to the devaluation of the Yen (something that is affecting every Japanese company) I don't see how it will have any impact on Nintendo leaving the console market. |
While I don't think Microsoft will be able to buy Nintendo outright, I do think it would behoove BOTH companies to team up together (and with Sega if possible) to take on Sony in the next generation.
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SONY needs to be dethroned!
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I posted this info yesterday in another thread - I didn't want to start my own thread about it cuz someone would've freaked out at me thinking I'm console bashing just cuz I posted some news. Anyway - here's another article from yesterday...
Nintendo Japan expects decreased sales This morning Bloomberg news reported about Nintendo's bit of financial woes this quarter. Due to a stronger than expected yen, and weaker sales of the GameCube and Game Boy Advance, they cut their profit outlook by 11 percent. "I have been warning clients for months," said Amir Anvarzadeh, director of Japanese equity sales at KBC Financial Products in London. "Its new group full-term forecasts look far too optimistic." Nintendo cut its forecast for sales of GameCube consoles to 10 million units for the year ending March from 12 million forecast earlier. The company also reduced its estimate for sales of Game Boy Advance hand-held players to 15 million from 19 million units. Nintendo did raise its estimate for sales of GameCube software by 53 percent to 55 million copies in the year, but cut estimates for Game Boy Advance software by 12.3 percent to 50 million. Nintendo's market share in the U.S. is expected torise to about 30 percent in the year-end shopping season, up from about 20 percent now, said Nintendo's President Satoru Iwata. First-half earnings were in line with expectations because of the assets ($375 million in cash) gained through the sale of Rare to Microsoft last month. -- Paul Bryant [/b] |
Originally posted by Tamrok I think you might have missed the sarcasm in Aghama's post, Josh... :) |
Originally posted by Josh Hinkle Sarcasm doesn't translate well on the Net. A smiley would have been helpful. |
Originally posted by Trigger I posted this info yesterday in another thread - I didn't want to start my own thread about it cuz someone would've freaked out at me thinking I'm console bashing just cuz I posted some news. Anyway - here's another article from yesterday... From Gaming Age. |
Some of you guys just dont pay any mind to what people post. Aghama has always been a nintendo gamer. He never bashes, if anything he mocks those of us who do get riled up about this stuff.
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It's only a matter of time until you all succumb to the addictive powers of Animal Crossing, and then Nintendo will reign supreme.
MUAH HA HA HA HA HA :lol: |
Maybe Nintendo will get out of the console market? I doubt they have the financial resources to go against MS in the longterm. I don't like their hardware too much, but they could make a lot of money if they only sold games for playstation and x-box.
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I think down the road Nintendo will get out of the console market and focus on software. way way way down the road.
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Originally posted by joltaddict Some of you guys just dont pay any mind to what people post. Aghama has always been a nintendo gamer. He never bashes, if anything he mocks those of us who do get riled up about this stuff. For the most, I just read every post at face value, and respond to it. I don't really pay that much attention to who's saying what. I don't come here to "get to know people." Obviously this doesn't apply to the 2 or 3 most active posters who everyone that reads the forum on a regular basis is going to know their typical views. |
So, let's talk about Nintendo and their earnings, instead of the people on this forum, okay? :D
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To get back on topic.
It's important to realize that they are scaling back they're projected profits. This is pretty common. Companies tend to overestimate their profits, rather than underestimate them. This is also true of projected units shipped. Remember the huge number of X-boxes MS was projecting to ship in the first year? You can't really base the "success" of a company by whether or not they reach their projected profits. That's one indicator, but there are so many other things that have to be taken into account. |
Originally posted by Static Cling So, let's talk about Nintendo and their earnings, instead of the people on this forum, okay? :D On topic, Nintendo wont drop consoles out of desperation, or financial NEED. I have been the guy on this board to make the case that they could probally make more from their franchises than the loss-leader console business model and even I wouldnt go that far. |
But how do you apply the loss-leader console business model when they were rumored to be making a profit on each GC before the price drop, and Planet Gamecube reported a couple of weeks ago that they're now making the GC for $100?
The N64 was the same way. Nintendo seems to lose money for a few months after launch and after price drops, and then either break even or make a small profit on each systems and they cut production costs. They can do this easier by making slightly less powerful hardware, and not including non gaming features that add to the cost. For example, Sony and MS have to pay a fee (I believe it's $20 per unit) to the DVD consortium since they're system plays DVDs. |
Originally posted by Josh Hinkle They can do this easier by making slightly less powerful hardware, and not including non gaming features that add to the cost. For example, Sony and MS have to pay a fee (I believe it's $20 per unit) to the DVD consortium since they're system plays DVDs. |
I wasn't aware of that. That was a good move by MS. Though that does make the $325 estimated cost of producing each X-box seem even higher.
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Originally posted by Josh Hinkle Planet Gamecube reported a couple of weeks ago that they're now making the GC for $100? |
Planet Gamecube rarely has a clue.
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