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Nintendo Q3 FY15 Results - Beats Market Expectations; Lowers Full-Year Forecast

Honestly it is absurd. And at the end of 2003 Cube was at 13.94m, so was not "slighty" ahead.

I just crunched some numbers to further drive it home: Even if Nintendo met their sales targets this year (VERY optimistic) and the Wii U followed the same decline rate YoY as the Gamecube up until they end production, it still wouldn't sell 15 million. Even 15 million is starting to become more and more unrealistic as time goes on, let alone something like 20 million.
 
Decent profit. Hardware sales aren't great, but when a company makes profit most people look at it as positive.

Well people should look also behind those profits. Their sales and revenues are still falling yoy. Of course it's always nice to see profit (most of the profits are from foreign exchange rates though) but there is also a limit how much they can cut the costs. They need growth to keep the company profitable in future (their developing expenses will rise again with next gen development).
 

Meffer

Member
I think the main reason that strategy backfired is because they didn't really push the 3DS as much as they should have. 3DS really needed a price cut during the holidays, even if it was only a temporary price cut.

The biggest offender was the lack of a really good Black Friday deal IMO. 3DS XL should have been going for $149 with a game included.
They should've sold the New 3DS globally all at once. I don't even live in Japan and I bought one. Don't regret it either.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
Well people should look also behind those profits. Their sales and revenues are still falling yoy. Of course it's always nice to see profit (most of the profits are from foreign exchange rates though) but there is also a limit how much they can cut the costs. They need growth to keep the company profitable in future (their developing expenses will rise again with next gen development).

I agree with a lot of this, but is it fair to say "most" of their $300 million profit was simply foreign exchange rate when Pokemon ORAS and Smash Bros were huge sellers?
 

Sandfox

Member
Well people should look also behind those profits. Their sales and revenues are still falling yoy. Of course it's always nice to see profit (most of the profits are from foreign exchange rates though) but there is also a limit how much they can cut the costs. They need growth to keep the company profitable in future (their developing expenses will rise again with next gen development).

Next year should be an interesting time for Nintendo.
 
Next year should be an interesting time for Nintendo.

Especially the next holiday season. 3DS is at the point where they've used up all their franchises to drive sales and Wii U only has Zelda left, haven't seen a holiday where Nintendo's coasted like this since..... ever really. I wanted to say 2004 but that was the launch of the DS. Who knows what kind of decline we're going to see for both systems this year, under normal circumstances at this level of sales we'd expect successors arriving soon.
 
Well people should look also behind those profits. Their sales and revenues are still falling yoy. Of course it's always nice to see profit (most of the profits are from foreign exchange rates though) but there is also a limit how much they can cut the costs. They need growth to keep the company profitable in future (their developing expenses will rise again with next gen development).

I think the positive takeaway of these numbers is that you'd expect the average company to literally bleed money in a situation like this. So the fact that Nintendo isn't, in fact, bleeding money at all, is quite reassuring. I agree, however, that this fact alone doesn't provide any positive long-term prospects for the company. It's clear that they need to rebuild / expand their customer base in the long term, but I've no idea how they're going to go about this (we're talking about Nintendo, after all).
 

lyrick

Member
So they had a decent turn around without layoffs or studio closures?

It would be cool of other players in the industry took note.
 

Sandfox

Member
Especially the next holiday season. 3DS is at the point where they've used up all their franchises to drive sales and Wii U only has Zelda left, haven't seen a holiday where Nintendo's coasted like this since..... ever really. I wanted to say 2004 but that was the launch of the DS. Who knows what kind of decline we're going to see for both systems this year, under normal circumstances at this level of sales we'd expect successors arriving soon.

Based on what Iwata has said they're basically just trying to make some easy money whereas in 2016 we'll see "Nintendo-like profits" and "gaming redefined".
 

Firemind

Member
So they had a decent turn around without layoffs or studio closures?

It would be cool of other players in the industry took note.
then where did they cut costs from?

if revenue is projected to fall by 25 billion and net profit to be 35 billion at the end of the fiscal year, then there must have been some cost cutting measures.
 
As I guessed, seems the Wii U will have a LTD of maybe 15 million.
Isn't PS4 right now 18 million? Talk about domination.

never thought I'd see the day Nintendo would raise a WiiU forecast lol.
Also anyone know what were Brawl's WW sales?
Around 12 million, so both versions pretty much are close to Brawl. I figured splitting the platforms would split the sales and I was right.
 

daxgame

Member
never thought I'd see the day Nintendo would raise a WiiU forecast lol.
Also anyone know what were Brawl's WW sales?

I'm curious to see if at E3 the next handheld will already be presented, to be launched in 2017. Even if it's not, I still expect it to appear at E3 2017 and launch in the same year.
 
Source? ;-)
Because DC LTD is 9.13M (Sega stopped production in January 2001).
You may be right, I don't know what the source is for the number I see in these articles. I also can't find the source for your number.

The last number I can find in their annual reports is 8.2M
 

Celine

Member
You may be right, I don't know what the source is for the number I see in these articles. I also can't find the source for your number.

The last number I can find in their annual reports is 8.2M
Sega stopped DC production in January 2001 thus:


It’s basically LTD until FY 2001 plus the remaining inventory which Sega was dumping into the market at fire sales prices in FY 2002:
HW = 8.20 + 0.93 = 9.13M
SW = 51.63 + 7.58 = 58.21M

https://www.segasammy.co.jp/japanes..._archive/2001/sega/sega_annual_tuuki_2001.pdf
https://www.segasammy.co.jp/english/ir/release/pdf/past/sega/2002/20011030.pdf

More Sega consoles LTD courtesy of CESA (which reported Sega shipment data):
http://i.imgur.com/Wl1BCwY.jpg

http://www.cnet.com/news/the-worst-game-consoles-ever/

This article and a few others I've seen have placed the final tally at 10.6 million.
"articles" (be them on print or online) or a Wikipedia page don't mean much to me if they don't have a reliable source backing their statement.
 
R

Rösti

Unconfirmed Member
Gain on sales of shares of subsidiaries: 3,587m yen

Anyone know what that was?
Got no intel on this, but likely is from lesser subsidiaries/affiliated companies like PUX Co., Ltd. and Warp Star Co., Ltd. Could of course be from more important companies like Nd Cube Company, Ltd. or SiRAS.com Inc., but as said, sales of shares of lesser subsidiaries more likely.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
Oh. Sorry. Not in this quarter but in past 9 months yes.

Right.

But this quarter was a $300 million profit mainly based on sales. That's a positive at the very least. Can they keep it up? Doubtful, but we'll see what E3 brings.

Next quarter will be much worse, probably.
 
but it's a question of if this can be sustained and continued now that all their big games have hit store shelves.

Zelda is waiting out there...

And 2015 will see many more Wii U games than 2014 even if in terms of sales perspective none if this will reach MK8 or Smash numbers at a whole they could drive the sales as good or better because some will reach a new audience. Like Xenoblade X, Kirby, Yoshi, Devil's Third, Splatoon, Fatal Frame 5, Mario Party 10, SMT vs Fire Emblem.
 

Somnid

Member
This is good. While they might not be in a strong situation it seems like they have been able to pad their margins enough to remain profitable. It's also nice to see that that padding hasn't really impacted player value, games are top notch and pricing has been quite fair. It would have been very easy to slip into sleaze modes like just about everyone else, compromise their own values, and player expectation but make a lot of money.
 
Glad to see Nintendo has seemingly stopped the bleeding, hopfully Wii U can sell at least 4 million this year with all the big games coming out.
Pokemon's numbers are pretty damn good, it's approaching the numbers of past remakes pretty quickly.

Let's hope they can knock it out of the park with their next set of hardware so they don't have to take losses for a few years again.

No. I don't see that happening. That's a good way to limit your audience. If they are going to do both platforms, it'll be like Smash where they're similar but different. That way, you get people who buy both.

Fuck that, I want cross play. The fact that Smash 3D and Smash U can't play against each other online bothers the shit out of me.
 

Y2Kev

TLG Fan Caretaker Est. 2009
So they had a decent turn around without layoffs or studio closures?

It would be cool of other players in the industry took note.

Guys, there's no real turnaround here. A large chunk of this is driven by the weak yen, which was previously hurting nintendo.

Total profit for 9 months ending 12/31 was 59.52bn yen. FX gain was 51bn yen!

Here's a line from Barclays equity research: "large forex benefits, but real trends remain weak."

It's still lowering its operating forecast. That is, the actual performance of its core business.
 

MilesTeg

Banned
Pretty impressive that MK8 almost at 5 million already. I guess it's just the combination of a great game and not many other games to buy on the console. Same deal for Smash U I guess.
 

KingSnake

The Birthday Skeleton
Q1 was a loss, Q2 was profit mostly on FX gains, Q3 is FX gains+operating income. Of course overall for the whole year the operating income is much lower as it is compensating the loss in the first quarters, especially Q1. But Q3 is undoubtedly a good quarter (under the existing conditions - with 3ds in decline and Wii U continuing to be a bomb).

Edit: but it needs more than 1 quarter to become a trend.

Edit2: Looking at the 9 months figures (3Q 2013 vs, 3Q 2014): FX gains: 48 billion yen vs. 51 billion yen vs. Operating income: -1.5 billion yen vs. 31 billion yen
 

Cheebo

Banned
They have to do a new handheld for Fall 2016. At the rate 3DS sales are falling there is no way they can wait till 2017.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
Actually, even when considering the obvious exchange factor, there are positive news, Y2Kev

9 months ending December 2013
Operating income (loss) - (1.5 billion Yen)
Exchange gains - 48.1 billions Yen
Ordinary income - 55.5 billions Yen
Net income - 10.1 billions Yen

9 months ending December 2014
Operating income (loss) - 31.6 billions Yen
Exchange gains - 51 billions Yen
Ordinary income - 92.3 billions Yen
Net income - 59.5 billions Yen

So, nope, it's not just exchange gains. A big factor, but not the only one. Far from it.
 
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