Nintendo World Report Forums

NWR Interactive => TalkBack => Topic started by: Flames_of_chaos on August 01, 2009, 08:29:29 PM

Title: Nintendo's First Quarter Profits Decline Sharply
Post by: Flames_of_chaos on August 01, 2009, 08:29:29 PM

Nintendo has reported a significant decrease in profits and sales in the first quarter.
 http://www.nintendoworldreport.com/newsArt.cfm?artid=19134

 During Nintendo's recent financial briefing, the company revealed much lower first-quarter numbers than what they reported during the same period last year (the fiscal quarter ending June 30).  Their net income decreased by over 60 percent to $445 million, and revenues dropped by 40 percent to $2.7 billion.  Overall operating profit dropped 66 percent to $425 million.    

Nintendo also reported that 2.23 million Wii consoles have been sold during the quarter, down from 5.17 million in Q1 last year. The worldwide lifetime sales for Wii are now 52.62 million.    

Wii software sales are also down for the quarter from 40.41 million last year, to 31.07 million this year. Nintendo stated that a lack of blockbuster titles contributed to the overall console sales decline, with no titles of the magnitude of  Mario Kart Wii or Wii Fit serving to bolster first quarter hardware sales.    

DS sales have declined as well; 5.97 DS systems were sold, compared to 6.94 million last year. The worldwide lifetime sales for DS are currently 107.75 million. DS software sales also dropped from 36.59 million to 29.09 million for the period.    

Nintendo expects to sell a total of 26 million Wii consoles and 30 million DS portables this fiscal year.  Nintendo's operating profit forecast remained at $5.15 billion for the fiscal year ending in March 2010, a twelve percent drop from last year.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: broodwars on August 01, 2009, 11:10:08 PM

*shrugs*

Well, that's what happens when a bad economy hits and Nintendo meanwhile fails to consistently ensure new quality Wii software that people want to buy since Mario Kart Wii released last year, leaving the console to the random whims of 3rd parties.  Nintendo stops bringing "the awesome" and people stop bringing the yen/dollars.  Still, I expect that Wii Sports Resort and NSMB: Wii will help turn this around a quarter or two later, so it's nothing to get altogether concerned about.  I just hope Nintendo's learned that they have to keep the hits coming or the sales will stagnate.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: NWR_pap64 on August 01, 2009, 11:15:36 PM

As an FYI, brood, all consoles saw sales decline. Last year alongside Mario kart Wii GTA IV was released for the 360 and PS3 and sales went up significantly. Not to mention that MGS 4 was released as well during the summer. In comparison to this year the HD consoles didn't see a big release of the same caliber as GTA. And even some of the bigger titles underperformed.

So long story short, all consoles have suffered greatly this year due to a lack of hype worthy titles. This isn't exclusive to Nintendo.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: SalesBot on August 01, 2009, 11:23:56 PM

Financial Report comparisons (http://www.nintendoworldreport.com/forums/index.php?topic=18481.msg536944#msg536944)

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: broodwars on August 01, 2009, 11:27:01 PM

Quote from: pap64 on August 01, 2009, 11:15:36 PM

As an FYI, brood, all consoles saw sales decline. Last year alongside Mario kart Wii GTA IV was released for the 360 and PS3 and sales went up significantly. Not to mention that MGS 4 was released as well during the summer. In comparison to this year the HD consoles didn't see a big release of the same caliber as GTA. And even some of the bigger titles underperformed.

So long story short, all consoles have suffered greatly this year due to a lack of hype worthy titles. This isn't exclusive to Nintendo.

I know that.  Like most news stories, it's been posted and discussed elsewhere at length before people could (understandably, mind you) find the time to post an official news story here.  But we're concerned about Nintendo profits here, and not at all difficult to see where Nintendo (who has the software priced at the advantageous level for this type of economy) faltered here.  Like I said, I expect them to rebound once their next batch of big titles start arriving next year, but they can't just keep releasing these titles in waves with large gaps between them or people get bored and start concentrating on saving their money.

And yes, Sony and Microsoft are in real bad shape right now given that unlike Nintendo they are actually reporting net losses rather than just a decline in profits.  I think their problems have more to do with the price of their games than a lack of games, since the 3rd parties have been pretty kind to them the last couple years.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: BlackNMild2k1 on August 01, 2009, 11:50:50 PM

If you take all of Sony's "earnings" from the last 10 years 99 -09 and then include Q1 of 2010, Sony has barely broken even over the last decade.

For Nintendo, between Hardware & Software they are averaging a decline of 41% and still make over $400million in Profit. Poor Poor Nintendo.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: ShyGuy on August 02, 2009, 01:45:31 AM

If this is a trend and it causes Nintendo to shift direction, we probably won't see it for a year or two.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: Guitar Smasher on August 02, 2009, 02:33:29 AM

This is probably what the rest of the year will look like.  Got to respect Nintendo for remaining so profitable despite no new compelling software.  On the upside, next year is already set up for a rebound.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: Plugabugz on August 02, 2009, 08:35:46 AM

Nintendo are Apple 2.0: They can sell nothing new at all, yet still make hundreds of millions of profit. Apple actually has to revise the iPod or PC/Laptop lines once or twice over to keep going.

Nintendo can sell equipment that's not been touched hardware-wise in 3 years and still sell 2 million in 3 months.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: NinGurl69 *huggles on August 02, 2009, 05:13:15 PM

July 26, 2009:  no new compelling software.

ahahahahaahhaahahahahhahahaahahahah

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: King Bowser Koopa on August 03, 2009, 10:28:29 AM

People seem to forget that most people already have a Wii and DS of some model or another - why would they buy a second? A decline in sales is kind of inevitable.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: NWR_insanolord on August 03, 2009, 10:46:55 AM

It's not like Wii sales are bad now, even now the Wii is about where the 360 has been in it's better non-holiday months. The decline is due to the fact that at this time last year the Wii was doing ridiculous numbers like nothing we've ever seen.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: KDR_11k on August 03, 2009, 12:57:10 PM

Quote from: King Bowser Koopa on August 03, 2009, 10:28:29 AM

People seem to forget that most people already have a Wii [..] why would they buy a second? A decline in sales is kind of inevitable.

The Wii only sold 50M so far, the DS has twice that and the PS2 allegedly thrice.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: NinGurl69 *huggles on August 03, 2009, 01:05:21 PM

iWiiSlimPlusGoDuoLite will help Wii shatter those records it needs.  Just the thing to help already-Wii owners think it's all right to pick up another Wii system for the household, to prevent kids from tying up Dad's Tiger Woods game after work.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: BlackNMild2k1 on August 03, 2009, 01:50:22 PM

Quote from: KDR_11k on August 03, 2009, 12:57:10 PM

Quote from: King Bowser Koopa on August 03, 2009, 10:28:29 AM

People seem to forget that most people already have a Wii [..] why would they buy a second? A decline in sales is kind of inevitable.

The Wii only sold 50M so far, the DS has twice that and the PS2 allegedly thrice.

But the PS2 is around ~125m sold not 150m

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: NWR_insanolord on August 03, 2009, 04:10:10 PM

Maybe Nintendo should try raising the price of the Wii, that increased sales of the DS.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: BlackNMild2k1 on August 03, 2009, 04:14:58 PM

Quote from: insanolord on August 03, 2009, 04:10:10 PM

Maybe Nintendo should try raising the price of the Wii, that increased sales of the DS.

But then that would basically be releasing the WiiHD. A wii with higher stats than the original Wii at a slightly higher price.
That is what they did with the DS when they raised the price.

Title: Re: Nintendo's First Quarter Profits Decline Sharply
Post by: NinGurl69 *huggles on August 03, 2009, 04:18:44 PM

TV ad campaign with Beyonce playing Wii from her fluffy bed.