Title: RE:Nintendo sees RED
Post by: mouse_clicker on October 03, 2003, 12:31:13 PM
No it doesn't- sure it's a big deal that they actually LOST money, but like the article said, it's the first time it's ever happened since 1962, and it's only for the 6 months. On top of that, they expect the Cube price cut to generate much more sales on that side of the fence and predict a profit by the end of their fiscal year, March of 2004
Title: RE:Nintendo sees RED
Post by: The Omen on October 03, 2003, 01:37:39 PM
It certainly isn't good news, but they're still slated to make 60 billion yen for the year. Nintendo news is so schizo right now, i cant seem to get a handle on if theyre making progress or not.
Title: RE:Nintendo sees RED
Post by: mouse_clicker on October 03, 2003, 02:03:21 PM
I know! First Gamecube sales have quadrupled, now they're going to be losing money for the first time ever?
It doesn't even look like much of a loss, though, especially for a company who's never lost any money.
Title: RE: Nintendo sees RED
Post by: PIAC on October 03, 2003, 03:58:49 PM
well this is a bit troubling, more so if that continues, but if its a one off thing it could (and is) serving to shake nintendo up a bit
Title: RE:Nintendo sees RED
Post by: Urkel on October 03, 2003, 07:41:30 PM
Nintendo still expects to make about a half-billion dollars in profit for the full year, which was about as much as they made last year. This isn't good news, but it's hardly bad enough to justify the million doom and gloom threads that will doubtlessly pop up because of it. It's a tough time all around in the game industry.
And I think Nintendo HAS "gotten the message". The Gamecube price drop and the considerable increase in advertising should boost things. I've seen more GCN commercials lately than I have for PS2 and Xbox combined.
Title: RE:Nintendo sees RED
Post by: Yuji Miyamoto on October 03, 2003, 08:53:39 PM
please, this changes nothing.
I guess this poster also hasn't heard about recent sales increases. an article like this gets spread across the web, yet the fact that microsoft has lost almost 3 billion on the x-box goes unmetion.
how come canuck only posts doom threads? i've noticed a pattern here.
Title: RE: Nintendo sees RED
Post by: Kaj'oin on October 04, 2003, 04:26:45 AM
Nintendo lost so much money because they had $5 billon dollars in cash which the change in to yen .now due to the storger yen combined with the weaker dollar they lost some $350million in the exchange-i think
Title: RE: Nintendo sees RED
Post by: Mario on October 04, 2003, 06:03:55 AM
This means NOTHING. Its because of the weak Japanese yen. Nothing to worry about. Sales are good and getting even better.
Title: RE:Nintendo sees RED
Post by: Stimutacs Addict on October 04, 2003, 07:37:46 AM
Quote Originally posted by: Yuji Miyamoto please, this changes nothing.
I guess this poster also hasn't heard about recent sales increases. an article like this gets spread across the web, yet the fact that microsoft has lost almost 3 billion on the x-box goes unmetion.
how come canuck only posts doom threads? i've noticed a pattern here.
he knows what he's talkin aboot (lame, i know, but i just had to spell it that way)
i guess its better to expect the worst so that you're surprised when things turn out better than you expect
Title: RE: Nintendo sees RED
Post by: mouse_clicker on October 04, 2003, 07:49:41 AM
Although I may not agree with thecubedcanuck on all issues, he isn't a guy that will just spout out something with nothing to backup himself up on why he thinks that way.
Title: RE:Nintendo sees RED
Post by: kennyb27 on October 04, 2003, 10:00:24 AM
Quote how come canuck only posts doom threads? i've noticed a pattern here.
It's a giant conspiracy to undermine the entire gaming industry and to overthrow everything we know about Nintendo.
I mean, really, just let him post what he wants; it's news either way.
Title: RE:Nintendo sees RED
Post by: thecubedcanuck on October 06, 2003, 02:21:17 AM
First of all, as a bobd trader I have a pretty good grasp of the market. Bonds are going in the toilet as we speak, meaning a rise in interest rates are only a matter of time. As for the YEN theory it just doesnt hold water with me. Yes the YEN is a factor, but these things fluctuate all the time and this has never resulted in a loss before.
Up untill now NIN has never posted a loss, regardless of why this happened this time it is still troubling, especially to NIN investors. Even the article said that lower than expected sales were partly to blame. The real problem as I see it is that these things usualy get worse before they get better. Yes sales have gone way up since the price cut, but at what cost to NIN? They are clearly getting less per unit, if they are even making a profit at all with the new price.
So to cut this short, if it is a one time deal, then fine no biggie. BUT, if they post 2 consecutive quarterly losses, or if year end numbers come in way lower than what they predict, then look out. Expect a mass exodus from share holders if this happens.
Title: RE: Nintendo sees RED
Post by: mouse_clicker on October 06, 2003, 03:29:30 AM
Hopefully Nintendo's shareholders have a little bit more confidence if Nintendo posts 2 consecutive quarterly losses, especially considering it will be Nintendo's only two at that point. Look at the shareholders Microsoft got to support the XBox- they all should have left a long time ago.
Title: RE:Nintendo sees RED
Post by: thecubedcanuck on October 06, 2003, 05:09:19 AM
Mouse
the big differance is that MSFT has a pretty good business going outside of the x-box.
When I look at the video game sector from a business standpoint and NIN specifically, I see a company that has failed to move with the mass target audience of video games, this is the reason for NIN's dropping share price. A first time ever loss is bad news because it shows that past business decisions are starting to catch up with them. I also look at the hand held market (NIN's cash cow) which they have a strangle hold on for the time being, but with Sony, Nokia, and sooner or later MS getting in on it, I cant help but think NIN's market share in this area dry up as well. Simply because the once famous NIN name will no longer carry any punch with a generation that grew up with Sony and MS.
IMO a whole new way of thinking is needed. Is it time to roll some heads at NIN, you bet it is.
Title: RE: Nintendo sees RED
Post by: KDR_11k on October 06, 2003, 07:09:43 AM
The handheld market is in no immediate danger. The NGage is not more than a major failure (look at Gamerankings!) and the PSP is still a year away at least. Those losses were over a rather slow period. Full warehouses, etc. However, the price cut seems to work. Even if their per-device income lowers, they have many new customers for their game lineup. Also MKDD is coming, that'll give them another big push.
Title: RE: Nintendo sees RED
Post by: ghostVi on October 06, 2003, 08:37:05 AM
We don't even know *what* PSP is ... yet. It hardly even fits into the GBA market, considering the hype so far at least (it's a multimedia handheld), so no point to argue here. For now at least.
And I believe MS have already stated they are not going there at all (don't quote me on this though, can't find the source).
Title: RE:Nintendo sees RED
Post by: egman on October 06, 2003, 09:58:37 AM
ghostVi--Microsoft did say that they weren't concerned with the handheld market--for now. I think they're going to look real hard at the PSP and how it ties into the Playstation's business. If consumers start using PSP/PS connectivity heavily, then I would expect Microsoft to change their position on handhelds.
As for Nintendo, the news I have seen seems to suggest that changes between the dollar and yen are more responsible for the drop than anything else. Of course Nintendo is going to be making less money now than they had before--people forget that alongside the poor economy we have experinced world wide Nintendo is no longer the market leader. To expect the same sales they had with Snes or Nes seems rather foolish. That doesn't mean that they don't have issues though.
I think thecubedcanuck is right about changes having to be made, but we have yet to see all of Nintendo's cards. Nintendo's certainly going into a different direction by working against industry trends and going with a "back to basics" approach with stuff like Wario Ware or Donkey Konga for instance. The hardcore gamers that frequent forums have overreacted lately about this direction since the shift has only begun recently--I don't think enough time has passed for any real judgement. With a lot of big games and some annoucements coming in the following year, I don't think we can really say anything conclusive until this gen is done, but I doubt the wiping Sony has put on Nintendo in the first place is going to help. Some people are just plained convinced that Nintendo being demoted from industry leader is automatically cause to suspect an announcment they will go third party.
Title: RE: Nintendo sees RED
Post by: Ian Sane on October 06, 2003, 10:53:04 AM
This isn't good news but one loss alone isn't that big of a deal. However if this trends continues and it isn't a one time thing then that's bad. Fans usually use the "Nintendo is making a profit" arguement to justify that Nintendo doesn't have to change how they're doing things. I've always felt that while things are fine now they won't be in the future if Nintendo never changes. This may be the first sign that poor decisions and a failure to move with a changing industry are catching up to them.
I hope this is a one time thing and Nintendo comes back next time. However Nintendo is at a point where they have to make some changes to accomodate the current market. The same old approach is not going to support them forever. No I don't mean they should make blood and guts games without any gameplay (which is a common counter-arguement used by some fanboys) but they can make some changes to their way of doing things and still hold true to their commitment to making quality software.
Ten years ago no one thought that Sega would be third party now. It may not happen to Nintendo next year but it COULD happen in the future and it's foolish to think they're bulletproof.
Title: RE:Nintendo sees RED
Post by: Ymeegod on October 07, 2003, 04:46:20 AM
Actuall MC, Nintendo's in the red for the first part of the fiscal year which excludes the recent price reduction on GC.
And it's doubtful that's going change anytime soon. $100+ million is going be spent on fall-winter ads which is quite a bit, plus you're losing a few dollars for every GC sold, ect it's going hard press for nintendo to make any type of profit in the fall unless it's software sells extremely well.
Title: RE: Nintendo sees RED
Post by: Mario on October 07, 2003, 04:49:20 AM
Quote plus you're losing a few dollars for every GC sold
I dont think so. Please elaborate...
And Mario Kart will guarantee profit for Nintendo.
Title: RE: Nintendo sees RED
Post by: PIAC on October 07, 2003, 10:21:16 AM
yeah, people arn't buying the $99 cube just to look at it, more consoles naturally leads to bigger software sales.
Title: RE:Nintendo sees RED
Post by: Oldskool on October 07, 2003, 10:47:56 AM
Funny, this is right next something about GCN sales increasing! Theres always two sides to the story...
Title: RE: Nintendo sees RED
Post by: PIAC on October 07, 2003, 10:19:51 PM
err dungeon siege... for gcn? the game published by microsoft? think you need to fix your sig ;P, i would have PMed this, but you wont let me
Title: RE: Nintendo sees RED
Post by: BlkPaladin on October 08, 2003, 07:09:09 PM
They are not losing that much if any at this point per console. (About a year ago they were at $100 per unit. And Nintendo is always looking for ways to make its consoles cheeper to make.) So who really know what they are make or lossing on the console currently.
And if they are they are only losing about $10.00 which they more than make up with one sale of a first party game.
Title: RE:Nintendo sees RED
Post by: Yuji Miyamoto on October 08, 2003, 09:40:31 PM
gamecube cost of production per unit = less than $50, ask around if you do not belive me.
gamecube outsells ps2 and x-box. gba has been outselling both since day one. if you'll excuse me for saying this but...
..this changes a lot of things! (lmao)
oh Lord I loved that line.
down go the doom sayers. i wonder who will really survive the video game market crash?
why don't you tell us bond trader?
Title: RE: Nintendo sees RED
Post by: PIAC on October 08, 2003, 10:33:42 PM
why don't you get some brains, CEREBELLUM'D
Title: RE:Nintendo sees RED
Post by: akdaman1 on October 09, 2003, 08:20:04 PM
my GOD can you people just think. look at the release list for the next year etc.
Mario KArt DD- best selling series from the snes to n64 and will continue to gcn. MGS- no need for explanation Viewtiful joe- this is a system seller for hardcore gamers without a gamecube. it wont set any records but..... 1080- 1080 on 64 sold 1 000 000 in japan alone. pikmin 2 - great original masterpiece pokemon ( all of them) - no explanation needed.