Topic: Nintendo Releases FY 2007 Financials

[WindyMan]

Sales and income are way up over last year; 14 million more Wii consoles and 40.3 million more DS portables to be sold in the next 12 months.
 http://www.nintendoworldreport.com/newsArt.cfm?artid=13368

 Nintendo opened up its books to the world today, and the numbers tell the story.  For its 2007 fiscal year, which started last April and ended this March, Nintendo accumulated Â¥966.5 ($8.19) billion in total sales, a third of which came from Nintendo's home country of Japan.  That is an astonishing 89.8% increase over the same period last year.  Total profit during the same time was Â¥174.3 ($1.48) billion, which is an just-as-equally-impressive 77.2% jump.  That's some serious cash, folks.    

Looking back at hardware and software sales, Nintendo managed to sell 5.84 million Wiis up until the end of March.  Nintendo stated that it met its goal of 6 million, but the numbers don't exactly seem to back that up.  Of that almost-six million, 2.37 million were sold in North America, 2 million in Japan, and 1.47 million across Europe.  28.8 million games were sold across all regions (excluding the Wii Sports pack-in), which puts the console's hardware-software tie ratio at a very good 4.9 games per system.    

The DS is doing just as well.  Over Nintendo's fiscal year the portable found 23.6 million new owners, with 123.6 million more games put into consumer circulation.  Life to date, 40.3 million handhelds have been sold since the device's holiday 2004 debut, along with 184 million games.    

Looking ahead to the next year, Nintendo is aiming to produce 14 million Wii consoles, adding that it wants to "further intensify" the Wii Channels lineup.  Nintendo expects 22 million DS systems to sell in the coming year (which is actually less than it sold the past year).  It also stated that it wishes to reposition the DS as something that's a "must-have for every family" to a "must-have for everyone."      

Speaking of the future, Nintendo hopes that sales over the next 12 months will hit 1.14 trillion Yen.  Yes, that's trillion.  As in, a million million.  ($9.66 billion, American.)  Hopefully for Nintendo, 175 billion Yen ($1.48 billion) of that will be profit.  In total, the value of Nintendo as a company is well over $13.4 billion, which in and of itself went up 26% in the last year alone.

[that Baby guy]

What do you do with all that money?

[UncleBob]

ham.

[Ceric]

First you don't have any debt and you don't have to worry about keeping the lights on and the people paid.  Nintendo is becoming the McDonalds of the Videogame world.  Always making  money.

Oh also if you crunch the numbers that they gave the Hardware-Software tie in ratio for the DS is ~4.5 games per system.  I know personally I blow that away even though I've only bought 1 DS game in the last year, asked me about 2 months ago and it would be 3 NSMB what a disappointment but Brain Age was good and EBA.

Edit:  Or if you UncleBob buy pig farms and processing plants.

[that Baby guy]

They really will become the McDonalds of video games if Uncle Bob has his way...  

[nickmitch]

I would buy solid gold dancers to follow me around. This would remind people of how rich I am.

[Louieturkey]

How many systems did Australia sell?  It doesn't seem to list those unless they stupidly group them with Europe.

[that Baby guy]

Hmm...Now we know some of what you do with billions of cash monies.  I am curious to see if there will be any other developers Nintendo buys up...

I think a list of companies Nintendo has worked with over the past couple of years may be appropriate reading material now.  I think we may start to see a few more investments in studios that they think will work well under their tutelage.  In fact, I'd go so far as to say if Nights, Sonic and Mario @ the Olympics, and maybe one or two other SEGA games have enough potential in ideas, Nintendo might consider an investment in them over the next year, perhaps going to buy them from Sammy, then try to rejuvenate some of their sickly franchises.

[GoldenPhoenix]

Quote
Originally posted by: thatguy
Hmm...Now we know some of what you do with billions of cash monies.  I am curious to see if there will be any other developers Nintendo buys up...

I think a list of companies Nintendo has worked with over the past couple of years may be appropriate reading material now.  I think we may start to see a few more investments in studios that they think will work well under their tutelage.  In fact, I'd go so far as to say if Nights, Sonic and Mario @ the Olympics, and maybe one or two other SEGA games have enough potential in ideas, Nintendo might consider an investment in them over the next year, perhaps going to buy them from Sammy, then try to rejuvenate some of their sickly franchises.

I remember those Sega buy out reports years ago, I don't think it will happen personally. Sega has been struggling big time, and I don't think Nintendo would want to add Sega's problems to their own. Anytime you purchase or merge with someone, you not only take their strengths but also their weaknesses, not to mention culture which may or may not be compatible with yours.  I do agree though that Nintendo may buy out another developer though, but I have a feeling it would be something like Monolith which is smaller in scale but has a proven track record to mold.

[that Baby guy]

What major titles does Sega have announced right now?  I can't think of anything that isn't for a Nintendo system.

But I don't want to deter the topic too much in one single direction.

Anyone care to brainstorm what Nintendo might want to pick up?
I think they'd go for devs that typically support Nintendo decently, but I can't do anything besides hope that they'll pick up a small American studio or two, since they seem lacking in that field.

Remember, Rare was sold for 300 million, I think, and that was considered a very large amount for a developer at the time, so Nintendo has enough money in the bank to buy six times that much.  I can see Nintendo choosing to buy three studios out of this at the most, and spending the rest somewhere else.  I imagine they will increase their advertising budget, and may consider opening Nintendo stores in a few of the larger cities, considering the successes I think Nintendo World has had in its two years of operation.  Even if the stores don't quite break a profit, promotional opportunities probably pay off elsewhere.  I don't think I want to see them branch off in too many directions other than gaming, and I know that they've spent some money on a movie studio, but I'm fuzzy on the details.

Could they consider buying Hudson?  That seems like someone they'd be interested in.  Hudson, or perhaps SNK.  I imagine they would be interested in companies with previous console would be a little tasty to Nintendo, because it would allow for quicker returns to lessen the damage from the purchase.

I seem to be inclined to think that Nintendo may want a damaged studio they could buy for cheap, yet it has lots of potential, either in developers or in IP, which is one reason why I'm so keen on SEGA, and perhaps SNK, too.  Looking from that perspective, I think Majesco would be an interesting buy, and I have to wonder what a direct Nintendo influence on that dev/publisher would have.  Unless the difference could be astounding, I don't think it would happen, though, as I think their damage is a bit off the charts.

Does Nintendo own Genius Sonority?  They're the ones who made the GC and Wii Pokemon games, and they're also developing DQ:Swords.  I could see them as a buy-up, if Nintendo doesn't already own them.  

[Nephilim]

SNK recently put a 360 game on hold, so maybe nintendo is buying them?
naw proberly not

seriously think nintendo are after dev's who have potiental but are in a slump aka cheap
cant really think of any

[DeadNote27]

I would like to see Nintendo buy Camelot.

Camelot isn't necessarily considered a damaged studio, but they'd still be a great buy imo. Besides, I want my Golden Sun 3 dammit!

[Nephilim]

everyone should watch the webcast man those stats are awsome

Webcast

17 of 20 top selling games last year were for DS, 1 was Wii
NDS is owning france & germany, japan style

tons of suprising stuff

[Ceric]

Personally I think Nintendo will do what I've heard they normally do.  Take the money and invest about a third of it back into the game industry outside of Nintendo itself.  Then take another third and invest in a totally unrelated field that they see potential in.  Plow the remaining third back in.