In a statement addressing their financial results for the three quarters ending Dec. 31, 2009, Nintendo stated that their "net sales, operating income, ordinary income, and net income represented the third best corresponding performances in company history, but they all saw a decline from the results of the prior year." Their rationale for the decrease was "year-on-year decreases in Wii hardware and Nintendo DS software sales, a price cut for Wii hardware, and the significant impact of a stronger yen."
Nintendo's net sales declined year-on-year, dropping 23.1 percent to ¥1,182.1 billion ($13.09 billion). Nintendo also reported profits of ¥192.6 billion ($2.1 billion), a 9.4 percent drop year-on-year. However, the company maintained their fiscal year forecast, predicting a net profit of ¥230 billion ($2.55 billion). This would be its first year-on-year profit decline since the introduction of the Wii console in 2006.
NINTENDO ANNOUNCES FINANCIAL RESULTS FOR THE NINE-MONTHS ENDING DEC. 31, 2009
January 27, 2010 - On January 28, 2009 (Japan time), Nintendo Co., Ltd. reported financial results for the first three fiscal quarters and earnings for the period ending Dec. 31, 2009, and left unchanged prior forecasts for full year global sales and profits.
The nine month figures for net sales, operating income, ordinary income, and net income represented the third best corresponding performances in company history, but they all saw a decline from the results of the prior year. The net sales and operating income declines in comparison to the record-breaking previous year primarily stem from year-on-year decreases in Wii hardware and Nintendo DS software sales, a price cut for Wii hardware, and the significant impact of a stronger yen.
The company also updated life-to-date worldwide unit shipments for its two category-leading brands. Cumulative shipments of Wii hardware now exceed 67 million, along with nearly 510 million software units. For the Nintendo DS franchise that includes Nintendo DS, Nintendo DS Lite, and Nintendo DSi, the corresponding lifetime totals now stand at over 125 million portable hardware systems, and over 688 million software units.
Consolidated financial results for April-December 2009 in millions of yen:
Net Sales * Operating Income * Ordinary Income * Net Income
Apr-Dec, 2009 1,182,177 * 296,656 * 314,511 * 192,601
Apr-Dec, 2008 1,536,348 * 501,330 * 352,488 * 212,524
% Change -23.1% * -40.8% * -10.8% * -9.4%
Unit sales in millions:
Apr-Dec 08 * Apr-Dec 09 * LTD * Forecast Apr 09-Mar 10
Nintendo DS
Total Hardware 25.62 * 23.35 * 125.13 * 30
Japan 3.29 * 3.52 * 29.92
The Americas 9.54 * 10.53 * 44.99
Other 12.79 * 9.30 * 50.23
Total Software 163.78 * 121.38 * 688.29 * 150
Japan 27.11 * 25.04 * 171.99
The Americas 64.55 * 56.95 * 261.90
Other 72.11 * 39.38 * 254.41
Wii
Total Hardware 20.52 * 17.05 * 67.45 * 20
Japan 1.89 * 1.76 * 9.72
The Americas 9.80 * 8.48 * 32.02
Other 8.83 * 6.81 * 25.71
Total Software 163.78 * 156.64 * 509.66 * 192*
Japan 11.04 * 12.48 * 46.57
The Americas 90.29 * 82.84 * 275.84
Other 62.46 * 61.32 * 187.24
No big deal. Profits are still 2 BILLION for one freaking quarter. Yeah, I'm sure Big N is in tears about this--mostly because they are laughing so hard it's making their sides ache.
I don't understand how you can argue that sales have peaked when Nintendo had the best month in the history of the medium last month.
I don't understand how you can argue that sales have peaked when Nintendo had the best month in the history of the medium last month.
Thats the point. literally, it rose to heaven and now it has to come back down to earth.
It hit it's peak and there is no where to go but down.
I don't understand how you can argue that sales have peaked when Nintendo had the best month in the history of the medium last month.
I don't understand how you can argue that sales have peaked when Nintendo had the best month in the history of the medium last month.
Thats the point. literally, it rose to heaven and now it has to come back down to earth.
It hit it's peak and there is no where to go but down.
It's a Holiday Bounce
A typical console lasts five years before it's replaced with a successor. The Wii peaking at this point would be normal and expected. It's not a problem. The Wii is a successful console and now Nintendo has to follow it up. How long did you expect the Wii to last? Anything longer than six years sounds INSANE to me. It's due for a follow-up.
What will be more of a problem for Nintendo is finding a reason for people to buy a new console. Just making it have HD console graphics won't make it an automatic seller as Sony and Microsoft already found out the hard way this generation.
A typical console lasts five years before it's replaced with a successor. The Wii peaking at this point would be normal and expected. It's not a problem. The Wii is a successful console and now Nintendo has to follow it up. How long did you expect the Wii to last? Anything longer than six years sounds INSANE to me. It's due for a follow-up.
Nintendo gets all uppity about everyone already owning a DS and thus hardware sales dropping. That's a GOOD thing. It's the best case scenario. If everyone who would ever want a Wii already owns one then mission accomplished. Now bust out the Super Wii and try to do it again.
QuoteWhat will be more of a problem for Nintendo is finding a reason for people to buy a new console. Just making it have HD console graphics won't make it an automatic seller as Sony and Microsoft already found out the hard way this generation.
I think the sheer fact that the PS3 and X360 exist and crush the Wii in graphics capabilities is enough justification for a new Wii. The Wii doesn't support HDTVs and that makes it out-of-date. Just keeping up-to-date is a pretty good reason to upgrade. A lot of people own HDTVs now and I'm sure a lot of them would like to be able to play Wii Sports 3 in HD.
And Motion+ demonstrates the ability for the remote to go further so at the very least we'll get a better controller. And I figure since new hardware would allow for easy porting between all three consoles the third party support would greatly improve. So maybe people just noticing the Wii 2 having more games than the Wii ever did would be sufficient enough.
The Wii is also trendy technology and the same idiots who update their iPod and cellphone every year would probably also be all over the idea of upgrading their Wii. It isn't about what it does for them, it's the status of having the newest trendy gadget. The Wii has the world's attention now so a new Wii will grab their interest. Hell Nintendo has just introduced the DSi and what the HELL does that really do to justify a purchase? Doesn't matter. The DS is trendy so they just have to make a minor change and people will fork over the dough to have the latest model.
And when you come down to it the Wii sold because it had that game everyone wanted in Wii Sports. So they just need a new game that has that sort of appeal.
Plus, you know, you just STOP MAKING REGULAR WII games and force everyone to upgrade if they want to play new games. It's how the whole console model works. If the Wii audience wants to continue playing videogames they'll buy the next Wii. And if that audience doesn't want to continue playing videogames then the whole thing was just a fad and Nintendo failed. The Wii userbase should want to continue playing videogames and thus jump through the hoops required to keep doing so.
If the Wii audience wants to continue playing videogames they'll buy the next Wii.
Even if they did release its successor and stopped supporting it (which would be insane), it sells so well that third parties would continue to support it.
The assumption should be that it would support ALL commonly used video inputs and that include HDMI. Nintendo was taking a risk by not including it in the first place. Obviously the successor HAS to support it. TV has changed. Nintendo has to adapt.
As for HD those of you talking about how not everyone has one yet and such, do you guys think at ALL about the future? How long do you honestly expect not supporting HD to be considered even remotely acceptable? We're talking about a consumer device that connects to televisions. The assumption should be that it would support ALL commonly used video inputs and that include HDMI. Nintendo was taking a risk by not including it in the first place. Obviously the successor HAS to support it. TV has changed. Nintendo has to adapt.
Making a new console would be based around the question "how do we sell this to people who didn't buy a Wii?" and I don't think the number of people who refused to buy the Wii solely due to weaker graphics is significant enough to warrant the investment.
To me this HD thing is like if Nintendo released the NES with coaxial being the only option and all of you would have been fine with it. The Gamecube supports component video. It was not something that was widely used. But if people had the TV that supported it it was a nice feature to have and one widely expected from a consumer electronic that connected to a television. I don't live in the US. I don't know what things are like there. But with the people I know I'm the old fuddy duddy for using an SDTV and being perfectly content with it. Do stores even carry anything but HDTV's these days? I just looked at the TV's on BestBuy.ca and every single one was HD. You think Nintendo not supporting the features of EVERY TV IN THE ****ING STORE is okay for the foreseeable future?
I also think it's silly to assume that crappy ass graphics are part of the Wii's success. It's not like if Wii Sports looked good it would have bombed. And the "rule" about weakest hardware fails with Nintendo's own SNES which SMOKED the Genesis in sounds and graphics and won the 16-bit generation.
