Nintendo shares sink with sluggish switch sales

Poor switch

green-mile-im-tired-boss.gif



It should have been retired early 2024
 
"Nintendo reported net profit of $551 million, below expectations of $482 million, and down 55.3% since the year before"

Huh, am I misreading this line? I thought their profits were down 70.6% YoY based on official release material:

"Operating profit decreased by 70.6% year-on-year to 54.5 billion yen, due to the decline in gross profit and the rise in SG&A expenses."
 
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Three said:
"Nintendo reported net profit of $551 million, below expectations of $482 million, and down 55.3% since the year before"

Huh, am I misreading this line? I thought their profits were down 70.6% YoY based on official release material:

"Operating profit decreased by 70.6% year-on-year to 54.5 billion yen, due to the decline in gross profit and the rise in SG&A expenses."
Click to expand...
Operating and net profits are different metrics ( pre and post taxes).
It was a slow quarter for the industry in general and they have a really old system on the market that needs to be replaced asap.
Actually they should thank covid that extended the Switch lifecycle by an extra 2 years.
 
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Look how long its been out. Its amazing its sold as well as it has so far.

Its just time for the Switch 2, thats all.
 
Three said:
"Nintendo reported net profit of $551 million, below expectations of $482 million, and down 55.3% since the year before"

Huh, am I misreading this line? I thought their profits were down 70.6% YoY based on official release material:

"Operating profit decreased by 70.6% year-on-year to 54.5 billion yen, due to the decline in gross profit and the rise in SG&A expenses."
Click to expand...
Net profit isn't the same than operating profit. But yes, the net profit numbers they posted seem to be wrong.

From what we see here, this quarter they had:
  • Gross profit: 281B yen (-45.8% YoY, $1.91B)
  • Ordinary profit: 253.7B yen (-55.3% YoY, $1.73B)
  • Operating profit: 185.4B yen (-70.6% YoY, $1.26B)
  • Net profit: 181B yen (-55.3% YoY ,$1,23B)
I did the yen to dollar conversion using google putting stuff like "181000000000 yen to usd".

At this point of the Switch lifetime it's normal to have lower revenue and profit: the console and its games are selling less because it's sunseting at the end of the generation, soon to be replaced by its successor. So that mean less revenue.

At the same time, they have extra cost of R&D and production of a new console that still isn't being sold, and there's an extra amount of games under development (the launch day + launch window games), which btw each new generation get more expensive to make. They already had less revenue, and with these things have more costs, so that means less profits.
 
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yurinka said:
Net profit isn't the same than operating profit.
Click to expand...
Yeah Elios pointed that out. I'm still trying to wrap my head around this line:

"Nintendo reported net profit of $551 million, below expectations of $482 million"

But I'm sure there's something I'm missing/misunderstanding there too.
 
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Makes sense, but it'll stabilize. Their last Q1 was frankly absolutely bonkers thanks to TOTK selling 10M within 3 days and pushing system sales.

The corresponding drop for Q2 should be way less.
 
Three said:
Yeah Elios pointed that out. I'm still trying to wrap my head around this line:

"Nintendo reported net profit of $551 million, below expectations of $482 million"

But I'm sure there's something I'm missing/misunderstanding there too.
Click to expand...
Nintendo's report says 181B yen ($1,23B), not $551M.

The article is wrong with these $551M and $482M numbers, or Google is doing something wrong with the money exchange calculation.
 
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yurinka said:
Nintendo's report says 181B yen ($1,23B), not $551M.

Elios is wrong with these $551M and $482M numbers, or Google is doing something wrong with the money exchange calculation.
Click to expand...
Elios isn't the one who said it. It's in the article.
 
They are dealing with a massive baseline result from last year, not only did they get a big bump from the Mario film, they also released a major tentpole release in TOTK.

Their problem is that their line-up for the rest of the year honestly looks like it consists of mostly-smaller titles compared to last year (mainline Zelda and a big Mario title that was timed with the film).
 
struggler_guts said:
Wish it was as easy as going to a company's site and buying stocks, getting a broker and all that nonsense is a little much for me
Click to expand...
It is that easy. Setup a trading account with questtrade or one of the other apps and go nuts. Or if you're Canadian all the major banks allow you to setup a trading account as well.
 
struggler_guts said:
Wish it was as easy as going to a company's site and buying stocks, getting a broker and all that nonsense is a little much for me
Click to expand...

It used to be that bad, but these days it's as simple as downloading an app and waiting a little while they confirm your ID. Trading fees aren't the absolute jokes they used to be either (used to be around £10 per trade (so each way - £20 to buy and sell) in the UK!).

Now, if you're a foreign national living in another country long term... then it can be difficult.
 
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Three said:
"Nintendo reported net profit of $551 million, below expectations of $482 million, and down 55.3% since the year before"

Huh, am I misreading this line? I thought their profits were down 70.6% YoY based on official release material:

"Operating profit decreased by 70.6% year-on-year to 54.5 billion yen, due to the decline in gross profit and the rise in SG&A expenses."
Click to expand...
551 is less than 482 :pie_thinking:

54.5B is 370M.
 
2025 will be 8 years since the Switch came out.

Nintendo never take this long to release a new console; either it's going to be the best thing ever..

Or it's so mid, they're worried about releasing it at all.
 
Griffon said:
Buy the dip.
Click to expand...
Personally planning to but going to wait another quarter at least. I figure fall is going to suck for them as well.

Edit: Current results aren't surprising. The platform is over 7 years old. They sold to pretty much everyone who would buy at current prices. The lineup this year is very lackluster.

And of course everyone knows Switch 2 is coming but as details are lacking, overall financial performance and expectations aren't going to be great.
 
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They kept the Switch around a year too long. Won't kill them but if they could have they should released the Switch 2 this year.
 
They should at least reveal this thing in 2024. If they can bring the games, which I believe is the whole reason for the "delay", they don't need to give a fuck about what Sony and Microsoft are doing.
 
Hudo said:
They should at least reveal this thing in 2024. If they can bring the games, which I believe is the whole reason for the "delay", they don't need to give a fuck about what Sony and Microsoft are doing.
Click to expand...
Did they ever cared?
 
I think Nintendo are smart and have been preparing their launch and taking their time. I am expecting their next console to have a much better supply chain and also games available during launch period than what Sony/MS did with PSeries.
 
Elios83 said:
Operating and net profits are different metrics ( pre and post taxes).
It was a slow quarter for the industry in general and they have a really old system on the market that needs to be replaced asap.
Actually they should thank covid that extended the Switch lifecycle by an extra 2 years.
Click to expand...
I'm scared shitless for Nintendo. I just have doubts they can follow up the Switch with something good enough. The pressure is on..
 
Hudo said:
They should at least reveal this thing in 2024. If they can bring the games, which I believe is the whole reason for the "delay", they don't need to give a fuck about what Sony and Microsoft are doing.
Click to expand...
Announcing now would tank holiday sales for switch hardware and as you can see it's already slowing down.

My guess is a price drop before holidays ~50.00 with a game bundle. And nothing about switch 2 till 2025
 
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