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Japanese platform holder Nintendo has released preliminary figures for the full year through to March 31st, revealing profits some 17 per cent higher than previously projected, thanks in part to favourable currency movements.

The firm now expects to report full-year net profits of 82 billion Yen (587 million Euro), compared with its own last estimate, delivered in late December, of 70 billion Yen (501 million Euro).

 

[Kseutron]

http://forums.gaming-age.com/showthread.php?t=42150

 

[koam]

Teh profitable d00m

 

[Bigfonzie]

How? how can they make so much money! sony are in debt and theyre number 1!, microsoft are losing money on each console sold, i have to hand it to nintendo they probabley are the winners this gen (in terms of moneyhats) which is whats important, isnt it?.

 

[VictimOfGrief]

Still sounds like they're gonna tank.

 

[DarienA]

How? how can they make so much money! sony are in debt and theyre number 1!, microsoft are losing money on each console sold, i have to hand it to nintendo they probabley are the winners this gen (in terms of moneyhats) which is whats important, isnt it?.

Not sure if you are being sarcastic, but MS and Sony do other things besides make consoles(In both their cases the other ventures their company's are involved with drag down the overall bottom lines)... Nintendo knows how to make consoles, make handhelds...and make profits on those.

 

[Drensch]

In both their cases the other ventures their company's are involved with drag down the overall bottom lines

In Sony's case, maybe.

 

[ToxicAdam]

Maybe some of that profit can be paid out to DS users who will be left out in the cold once the GBA2 comes out.

 

[Bigfonzie]

Not sure if you are being sarcastic, but MS and Sony do other things besides make consoles(In both their cases the other ventures their company's are involved with drag down the overall bottom lines)... Nintendo knows how to make consoles, make handhelds...and make profits on those.

thats true, but what im saying is just the console/games business nintendo have done great, maybe better than sony in terms of profit this gen? , beign third place and having such big profits is great.

 

[jarrod]

How? how can they make so much money! sony are in debt and theyre number 1!, microsoft are losing money on each console sold, i have to hand it to nintendo they probabley are the winners this gen (in terms of moneyhats) which is whats important, isnt it?.

Different hardware models. Nintendo only makes videogames (though they're looking to expand into film), so they design low risk hardware with higher immediate returns.

Sony's model involves high end loss takers that make eventual returns through a combination of high volume and internal production. Nintendo couldn't do this, they don't have other CE divisions to invest in hardware manufacturing and if they didn't have a PlayStation sized success, no other divisions to help absorb the losses. They'd go under in a second.

Microsoft's model doesn't even involve a return, they just slap high end components together and eat the loss. This obviously wouldn't work for Nintendo.

 

[DarienA]

In Sony's case, maybe.

Well in MS case you have to say every ventures besides the Windows family(and other various apps) bring down MS' bottom line... that's not to say that it puts MS in red, we know that's not the case.

 

[Link316]

thats true, but what im saying is just the console/games business nintendo have done great, maybe better than sony in terms of profit this gen? , beign third place and having such big profits is great.

Sony's game division has made more profit this gen and I wouldn't say that being in 3rd place is great cause most of Nintendo's profits come from handhelds

 

[Bigfonzie]

So nintendo dont make any nintendo consoles or controllers??? they just contract them out? ,if they do its suprising considering how long they have been in the business, you would think they would have factorys and in-house production by now (just to save a little $moley$ . just look at microsoft and how that turned out :lol

 

[jarrod]

Does anyone actually have a record of SCEI's profits over the PS2 lifespan (2000-2004)? And do we know specifically what investment costs were offloaded to SEL? I'm not entirely sure SCEI's actually brought in more than Nintendo the past 4 years.

Also, Nintendo's profit tends to evenly distribute between handhelds and consoles, due to such higher returns from console software. Handhelds should make up more this year though thanks to the DS launch. Next year when Revolution launches, then it'll likely shift back to 50/50.

 

[jarrod]

So nintendo dont make any nintendo consoles or controllers??? they just contract them out? ,if they do its suprising considering how long they have been in the business, you would think they would have factorys and in-house production by now (just to save a little $moley$ . just look at microsoft and how that turned out :lol

Outsourcing can often be cheaper than inhouse production. There's plenty of factors as to why Nintendo did well with it and Microsoft didn't. Sony's PlayStation model is far too risky for a company like Nintendo.

 

[Drensch]

Sony's game division has made more profit this gen and I wouldn't say that being in 3rd place is great cause most of Nintendo's profits come from handhelds

You mind backing that up?