Topic: Nintendo Q1 Report - Apr-Jun 08

[BlackNMild2k1]

http://www.nintendo.co.jp/ir/pdf/2008/080730e.pdf

http://www.reuters.com/article/ousiv/idUST6661320080730

TOKYO (Reuters) - Nintendo Co Ltd's (7974.OS: Quote, Profile, Research, Stock Buzz) quarterly profit rose 31.5 percent on the runaway success of its Wii game console, but the Japanese video game maker kept its annual outlook that falls well short of market expectations.

April-June operating profit at Nintendo, which is waging a three-way battle with Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) and Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) in the global video game industry, rose to 119.2 billion yen ($1.10 billion) from 90.63 billion yen a year earlier.

Nintendo's Wii, competing with Sony's PlayStation 3 and Microsoft's Xbox 360, has enjoyed brisk demand thanks to its easy-to-learn motion-sensing controller, low price and innovative titles such as the "Wii Fit" exercise game.

For the full year to March, Nintendo kept its operating profit forecast of 530 billion yen, up 8.8 percent on the year, but below a consensus of 597.1 billion yen in a poll of 20 analysts by Reuters Estimates.

Shares in Nintendo, creator of iconic game characters such as Mario and Zelda, have fallen 16.9 percent this year through Tuesday, underperforming the benchmark Nikkei average .N225, which is down 14 percent.

Operating Profit ~$1.1 billion
Net Profit ~$1 billion

Wii HW Q1 - 5.17 million (an increase of 1.74 million from last year) (29.62 million total)
DS HW Q1 - 6.94 million (a decrease of 0.04 million from last year) (77.54 million total)

Wii SW Q1 - 40.41 million (an increase of 24.42 million from last year)
DS SW Q1 - 36.59 million (an increase of 2.33 million from last year)

Mario Kart Wii Q1 - 6.42 million
Wii Fit Q1 - 3.42 million (5.27 million total)

Cash and Deposits ~$6.6 billion (decrease mostly due to payment of dividends and income taxes)
Total Assets ~$16.4 billion

Yearly Net Profit Forecast ~$3 billion

Adding this quarter to the previous records

Nintendo Since 1998 has made roughly $10,737,000,000
Sony Since 1998 has made roughly $1,953,000,000
Microsoft since 2002 has made - $6,369,000,000

Last 3 months:
Sony (Game) Profit $51mil
MS (EDD) Loss $188mil
Nintendo Profit $1.01 bil

*shamelessly stolen from NeoGAF*

I'm surprised no one has mentioned this on these boards...

$1 BILLION DOLLARS


How I wish I bought those stock some 2-3 years ago...
What do you think it running through the minds of the 3rd parties right now? $1billion profit in the 1st quarter of the fiscal 2008 year? that is incredible. Blue Ocean, more like Green Oceanand Nintendo is swimming in it.

[BeautifulShy]

Wow 1 BILLION Dollars!!! This isn't really surprising considering  what was released during that time. I wonder what they are going to do with that money? Are they going to put it towards next gen and those Hvd discs. Are they going to save it for a rainy day? Or something entirely different?

[DAaaMan64]

They should start a College scholarship program so I can freakin' go to school.

[EasyCure]

They should start a College scholarship program so I can freakin' go to school.

AGREED!

Finish Mario Bros.: The Lost Levels on a speed run w/ no lives lost and you should get free schooling wherever you want.

[Luigi Dude]

I'm surprised no one has mentioned this on these boards...

It seems you don't visit the Offical Wii Sales Thread then, because I mentioned it yesterday.
http://www.nintendoworldreport.com/forums/index.php?topic=18481.2675

Nintendo releases their Q1 Earnings.

http://www.nintendo.co.jp/ir/pdf/2008/080730e.pdf

As of the end of Q1, according to Nintendo the Wii has sold a total of 29.62 million units of hardware and the DS has sold a total of 77.54 million units.  And in terms of software, the Wii has sold 188.85 million units, while the DS has sold 406.19 million. 

In comparison, the Gamcube to this day according to Nintendo has only sold 21.74 million units in hardware and 208.56 million in software.  While the GBA has sold 81.24 million units in hardware and 376.94 million in software.

Oh and it should also be noted that Mario Kart Wii as of the end of Q1 according to Nintendo has sold 6.42 million copies worldwide.  That's right in only a few months Mario Kart Wii has sold close to 6.5 million copies and is still selling in every territory as well.  The way things are going Mario Kart Wii could easily end up being the best selling Mario Kart game of all time.

[Dirk Temporo]

Jesus Christ...

[BlackNMild2k1]

Sony & MS must feel ashamed. Sony with a measly(by comparison) $51million in profits & MS still continuing to show a loss.
NIntendo am doomed!!11!! Its a good thing they are getting out ogf the console industry after thishorrible failed non-gamer experiment.


but seriously, what do you think Nintendo is gonna do with all that $$$$? Invest in more 3rd party acquisitions, more 3rd party collaborations, or just sit on the cash and keep doing what they are doing? Maybe they can take some of those profits and make something worthwhile to release around Christmas

[NinGurl69 *huggles]

Buy more baseball teams.

[Ceric]

Did anyone else notice that the Attach Ratio for the Gamecube is still better then the Wii.  I'm sort of surprised by that personally.  I mean if this was Sony or MS that would mean that in actuality they were making less money this time but, since Nintendo makes a profit on the consoles I guess it really doesn't matter as much.

Though a lower attach rate means it will be a longer time till we see a price drop, which isn't needed anyway.

The Wii has ~6 to 1 ratio and the Gamecube had ~9.5 to 1 ratio.  While the Wii is doing better then both the DS,~5 to 1, and GBA, ~4 to 1, by those numbers... Sort of interesting.

Also with this strong gain and Nintendo isn't changing the forecast means that they either have something risky up there sleeves or are going to make a large investment somewhere that was decided on after the budget was made. (Research push, new Developer Studio, Expanding to a New Market, Etc.)

[KDR_11k]

The attach rate of a system grows throughout its lifetime. I recall the GC being around 4.sumthing when I saw the first stats.

[Ceric]

Yeah but, I'm surprised that the Gamecube end of life beats the GBA's end of life attach ratios.  By that large of a margin to boot.

[Flames_of_chaos]

So now we know why Microsoft still charges people for Xbox live. Or maybe they are too busying buying out timed exclusivity or a 360 version of a PS3 game.

[NinGurl69 *huggles]

Yeah but, I'm surprised that the Gamecube end of life beats the GBA's end of life attach ratios.  By that large of a margin to boot.

It should be no surprise since GameCube didn't sell nearly as many console units.  Decreased denominator makes that impact.

[Adrock]

but seriously, what do you think Nintendo is gonna do with all that $$$$?

In all likelihood, invest in new technology. It keeps them ahead of the curve and makes them even more money. Nintendo has a knack for finding new technology that is both inexpensive and innovative. Nintendo won't buy other companies. They don't need to. Often, buying a developer or publisher means buying IPs and in many cases, inheriting that company's debt. That's essentially what Microsoft got when they pulled the trigger and bought Rare and what Nintendo would have gotten had they purchased Sega back in what, 2002? Would it have been worth it? Maybe, Sega's biggest flaw is poor management, something Nintendo excels at. Still, Nintendo has the largest, most recognizable lineup of characters in the world. Having access to all of Sega's various IPs would have been nice, but it's not like Nintendo is in dire need of more familiar, marketable charcters.