Topic: Nintendo 3Q Consolidated Financial Results

[Gahiggidy]

Big news is Nintendo made 4 million Wii but failed to ship 810k of them out to retailers.

 Nintendo Co., Ltd. today announced that strong sales of Nintendo DS hardware and software and the successful launch of Wii have led to record consolidated sales and operational profit for the nine-month period ending Dec. 31, 2006. Recurring and net profits also set record highs. Nintendo maintains projections for record financial results through its fiscal year, which ends March 31, 2007.    

Thanks to extremely strong Nintendo DS sales and the successful launch of Wii, Nintendo's consolidated net sales were up 72.8 percent over the same nine-month period last year, and operating income was up 102.5 percent.    

Nintendo also announced:    

 
• During the first nine months of the current fiscal year, consolidated worldwide shipments of 19 software titles for Nintendo platforms reached or surpassed 1 million units. These include three Wii titles, 13 Nintendo DS titles and three Game Boy Advance titles.
 
• Nearly 1.4 million Wii hardware systems have connected to the Internet worldwide (as of 1/24/07)
 
• Approximately 1.5 million Virtual Console games have been downloaded and sold to customers worldwide (as of 1/24/07)
 
• More than 3.5 million unique users have enjoyed game play on Nintendo Wi-Fi Connection for Nintendo DS, with far more than 100 million connections (as of 1/24/07)
 

   

The company held firm to its previous forecast for consolidated worldwide shipments of 6 million Wii hardware systems by the end of the fiscal year. Nintendo manufactured 4 million Wii systems by the end of 2006 and during that time sold and delivered 3.19 million to its distributors and retail customers around the world.      

In addition to this news, the financial report shows that Nintendo has sold:  

• 17.5 million units of Wii software  
• 18.8 million DS hardware in the last nine months, bringing DS sales to 35.6 million worldwide  
• and 93.8 million DS games in the last nine months

[vudu]

Is my math off or does the Wii currently have almost a 5.5:1 software to system tie-in ratio?  (17.5 / 3.19 = 5.49)

That's insane.

[that Baby guy]

I think Nintendo told us, in a way about shipping issues, because a lot of their earlier statements, right before launch, they made a bigger focus on getting units to stores, and not  such a big deal about producing them, compared to the 360 and PS3 launches.

[Ceric]

If you count Wiisports I personally own 3 games.  I wander if WiiSports is included?  Still that sort of insane considering that it doesn't havea vast library and is relatively new.  Maybe there counting VC games as well at the point I have 7 games for my Wii.

[Smash_Brother]

Quote
Approximately 1.5 million Virtual Console games have been downloaded and sold to customers worldwide (as of 1/24/07)

That's great news. Maybe some of the sluggard 3rd parties will get their sh*t together and add their games now...

[that Baby guy]

I remember there was an initial either 3:1 tie-in ratio, and news sites reporting that as low.  Then I remember when the 64 launched with only Super Mario 64 and Pilotwings 64.

[KDR_11k]

The Wii is the only console whose tie-in ratio I'm pulling down.

[ShyGuy]

Four million goal missed? Well that seals it, Nintendo should just go third party.

[Acefondu]

I didn't buy Nintendo stock....why?

[Arbok]

Quote
Originally posted by: Smash_Brother

Quote
Approximately 1.5 million Virtual Console games have been downloaded and sold to customers worldwide (as of 1/24/07)

That's great news. Maybe some of the sluggard 3rd parties will get their sh*t together and add their games now...

One can only hope. We have Namco, Konami, Capcom and Tecmo onboard... but with only 1 (2 for Konami) a piece. Hopefully sales have been more then enough to warrant them to spend the money to add more of them in the future.

I would also kill for someone to release Super Dodge Ball (NES, Turbographix... it all works for me). I know that Technos is dead and gone (RIP), but I think Million Corporation holds the rights, which allowed the creation of the less then stellar GBA version, so I'm hoping this at least proves to them that there could be some safe profits involved with the VC.

[GoldenPhoenix]

Wait a second, I thought Pittboi and others said the VC didn't have games people wanted, along with being a failure. Guess you learn something everyday, don't yah?

[IceCold]

Quote
Originally posted by: vudu
Is my math off or does the Wii currently have almost a 5.5:1 software to system tie-in ratio?  (17.5 / 3.19 = 5.49)

That's insane.

Must be an error. It says "Nintendo has sold.. software units" so that's not even counting third party sales. They don't even have that many games out! I'd say it's 7.5 million..

[Bloodworth]

no, I double checked the financial report.  It shows 9 million games in the Americas, 4 million in Japan, and 4 million in Other.  They have to be tracking third party games too, but even with that it seems insane.
http://www.nintendo.co.jp/n10/news/070125e.pdf

[NinGurl69 *huggles]

Sir, those numbers are insane.  How do you explain this?

[Entroper]

By the wording, it sounds like these numbers are "shipped" and not "sold-through to customers," which could explain the seemingly high tie-in ratio.  There are a lot more Wii software titles sitting on store shelves than there are Wii hardware units (the hardware is sold out virtually everywhere, but I'm sure a lot of the games aren't).

1.4 million Wiis online and 1.5 million Virtual Console games sold is huge.  HUGE.  And that's not counting sales of LttP.  

[ThePerm]

105 million estimation on how much they made on virtual console games(not counting net costs, or licensing)

[that Baby guy]

Let's see, I bought the stock in May, at a cost of 22.50 a share, including brokerage and money exchange rates, and right now, it is worth 35.75, although that isn't including those same fees as before.  Can someone say profit?

[IceCold]

It rose $1.30 today - damn you couchmonkey!

And it was at $14.25 the day the Wii controller was revealed..