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Nintendo - the price of competition - 78.5% decrease in operating profits

Oh, but its occurence grows increasingly likely. Nintendo has grown complacent, preferring to leech off the faithful rather than introducing ideas that will expand their userbase. They can make as much money as they want - which is FINE - comfortably nestled in the niche they've carved for themselves, but the industry will move forward, leaving them behind to churn out 'touch me, kirby!' and every other insipid hack job that their reliable franchises allow for.
 
Like I said before, I don't see anything in the foreseeable future that will bring Nintendo's profits up to the company's last high.
 
mj1108 said:
I knew some people here were hypocrites...you don't see this "doom and gloom" talk in Sony's financial thread.

True. Especially considering that Sony's results for the quarter were far worse than Nintendo's.
 
SanjuroTsubaki said:
:lol Here is $250 for a "family" device. What are they going to do all huddle around the screen? What if the family member gets nervous and drops the break-prone system? What if that family member gets angry and murders everyone in sight because of this action? Family fun? I think not sir.

Well, my point was that right now, the only people buying the PSP are the die-hards. I think that's a reasonable thought. Not too many little girls and boys playing with nice, shiny $250 machines. But the PSP isn't going to be $250 forever. By the time Nintendo unleashes it's new beast, the machine will be signifigantly cheaper. Cheap enough for parents to purchase as a nice Christmas or Birthday gift. This is where the bulk of the GBA's sales comes from. Casual parents who buy them for their kids. If the price is right, the parents will flock. And you can bet by then the PSP will have some kid-friendly software in it's lineup, too.
 
SonicMegaDrive said:
Well, my point was that right now, the only people buying the PSP are the die-hards. I think that's a reasonbale thought. Not too many little girls and boys playing with nice, shiny $250 machines. But the PSP isn't going to be $250 forever. By the time Nintendo unleashes it's new beast, the machine will be signifigantly cheaper. Cheap enough for parents to purchase as a nice Christmas or Birthday gift. This is where the bulk of the GBA's sales comes from. Casual parents who buy them for their kids. If the price is right, the parents will flock. And you can bet by then the PSP will have some kid-friendly software in it's lineup, too.

But Nintendo hasn't said really much about its GBA2. If they do the opposite and stick with the DS as it continues to beat up on the PSP that would be fine. But with Nintendo you never know they could find cheap means of making the GBA2 and launch it at the same price or lower than the PSP with a cheaper and non-ridiculous way of memory storage, they win again.
 
Taker666 said:
True. Especially considering that Sony's results for the quarter were far worse than Nintendo's.

?huh :lol

I agree the drop in profit isn't the big deal, it's the health of the business.

The Gamecube & GBA are reeling, both software and hardware and, while the DS is doing well, there are signs of weakness in the US.

The PS2 & PSP are rolling along, with the PSP showing weakness in Japan (not nearly as bad as the DS in US), although YTD the two handhelds are very close (in Japan).

Sony's game business strong in first quarter
Sony's games division, which makes the PlayStation consoles and software in the April to June period, it announced in Tokyo on Thursday.

Sales were up 64 percent on the back of the PlayStation Portable handheld device and slim PlayStation 2 console.

Shipments of the PlayStation Portable totalled 2.1 million units during the quarter, while those of the PlayStation 2 reached 3.5 million units.

For the full year Sony increased its production estimates for both the PSP and PS2 from 12 million units each to 13 million units each.


However, the division reported an operating loss of ?5.9 billion, which was attributed to an increase in selling, general and administrative and research and development expenses.
 
SonicMegaDrive said:
Well, my point was that right now, the only people buying the PSP are the die-hards. I think that's a reasonable thought. Not too many little girls and boys playing with nice, shiny $250 machines. But the PSP isn't going to be $250 forever. By the time Nintendo unleashes it's new beast, the machine will be signifigantly cheaper. Cheap enough for parents to purchase as a nice Christmas or Birthday gift. This is where the bulk of the GBA's sales comes from. Casual parents who buy them for their kids. If the price is right, the parents will flock. And you can bet by then the PSP will have some kid-friendly software in it's lineup, too.
Well, not really, the PSP can never be cheaper than 150 dollars in the US. The massive GBA sales are thanks to the GBA/GBA SP being 80 dollars and lower!
 
SanjuroTsubaki said:
But Nintendo hasn't said really much about its GBA2. If they do the opposite and stick with the DS as it continues to beat up on the PSP that would be fine. But with Nintendo you never know they could find cheap means of making the GBA2 and launch it at the same price or lower than the PSP with a cheaper and non-ridiculous way of memory storage, they win again.

Right now, Nintendo just has to sell lots of DS'. They baked their cake with the DS, so they have to stick with it for a while. Releasing a new GameBoy within the next 2 years would be a mistake. They need to spread these systems out more. The first GBA was released in 2001, and here it is 2005, and already it's future looks bleak. A 4 or 5 year shelf life for a portable sounds pretty shabby when you consider the orignal Game Boy lasted over 10!

They also need a ton of good software and great 3rd party support(the immediate future looks good). And they need to keep their franchises fresh. There will come a time, and it won't be long from now, where people will begin to lose interest in the latest Mario, Pokemon, or Zelda titles. They need to blend their tried-and-trues with some original stuff.
 
Taker666 said:
True. Especially considering that Sony's results for the quarter were far worse than Nintendo's.

And the worst part is - people don't even know what "Operating Profit" means, yet they want to chime in with their take on N's demise. For one thing - R&D costs come out of Operations. Nintendo spending more money on the Revolution and their other research is a good thing.
 
sonycowboy said:
?huh :lol

I agree the drop in profit isn't the big deal, it's the health of the business.

The Gamecube & GBA are reeling, both software and hardware and, while the DS is doing well, there are signs of weakness in the US.

The PS2 & PSP are rolling along, with the PSP showing weakness in Japan (not nearly as bad as the DS in US), although YTD the two handhelds are very close (in Japan).


So wait - Sony's game division having an Operating Loss of 5.9 billion (I assume that's Yen) is healthy, but Nintendo having an Operating Profit of 3.75 billion yen is bad?

Loss vs. Profit.

WTF?
 
teiresias said:
Nintendo doesn't need to plan to rip people off in the future, they've been the masters of doing it with the Gameboy hardware for years now.

Not quite. They offered a superior systems all with new games I would want to play. Only one s questionable are the Game Boy Pocket and GBA SP for offering nothing more than a redone console.

While Sony on the other hand finds it necesary to ship PS2 systems that break down after a few years of use because of cheap parts and finds it right to charge people $80 to have it fixed. Things like this make me afraid to jump into a console at launch now. It is foolish to feel this way.

Nintendo on the other hand, quality and great customer service is a sure thing. You have n o fear of spending $300-400 on a console an having it shit the bed.
 
Ruzbeh said:
Well, not really, the PSP can never be cheaper than 150 dollars in the US. The massive GBA sales are thanks to the GBA/GBA SP being 80 dollars and lower!

You're right. Spending 80 bucks(or 50-60, as I think the Micro will cost), sounds a lot better than 150. But I wouldn't rule out a 100 dollar PSP. That's the magic price point for these parents, and Sony knows it.
 
SonicMegaDrive said:
Right now, Nintendo just has to sell lots of DS'. They baked their cake with the DS, so they have to stick with it for a while. Releasing a new GameBoy within the next 2 years would be a mistake. They need to spread these systems out more. The first GBA was released in 2001, and here it is 2005, and already it's future looks bleak. A 4 or 5 year shelf life for a portable sounds pretty shabby when you consider the orignal Game Boy lasted over 10!

They also need a ton of good software and great 3rd party support(the immediate future looks good). And they need to keep their franchises fresh. There will come a time, and it won't be long from now, where people will begin to lose interest in the latest Mario, Pokemon, or Zelda titles. They need to blend their tried-and-trues with some original stuff.

Alright so you are no enemy. Your exactly on the same page as me. I feel with handhelds supreme power is not necessary when you have actually fun games to play. I would love to see the DS last several years before the successor is brought into play.

I'm just sick of these people that feel the need to hate on Nintendo just because they don't own one and understand the logics of business. I bought a PSP and returned it. I feel paying $250 for a handheld with no unique games (besides Lumines) and memory devices that cost more than a couple games is a waste. Also the thing isnt very portable and break very easily....hey spend more money to protect it!
 
BuzzJive said:
So wait - Sony's game division having an Operating Loss of 5.9 billion (I assume that's Yen) is healthy, but Nintendo having an Operating Profit of 3.75 billion yen is bad?

Loss vs. Profit.

WTF?

Exactly.

A loss isn't necessarily a bad thing as long as your preparing for the future health of the business. I'm not saying Nintendo is flailing, they're extremely profitable, but their current console and handheld business is not healthy for them.
 
:lol Believe me, I'm not anti-Nintendo(or anti-any company for that matter, save maybe EA :D ). I want to see Nintendo stay relevant like the rest of you. I just think Nintendo is walking a very thin line right now, and in order to insure the future of their company, a few changes need to take place.
 
SonicMegaDrive said:
You're right. Spending 80 bucks(or 50-60, as I think the Micro will cost), sounds a lot better than 150. But I wouldn't rule out a 100 dollar PSP. That's the magic price point for these parents, and Sony knows it.
Well, I can tell you, if the PSP ever gets 100 dollars, I'm getting it (just so I could play my wide-screen pr0n on it, of course). But I really doubt it. Also, PSP games are more expensive than GBA games. I don't know exactly how much in the US, but in Europe, PSP games will cost 60 euros at most and GBA games cost 45 euros at most.
 
sonycowboy said:
And that listing is wrong :p

Sony has 2 whole games coming out in August:

Namco Museum
Death Jr


Nintendo has 5:

Madden 2006
Advance Wars
Nintendogs
Pac N Roll
Yu-Gi-Oh

Way to miss the big picture (never mind even two successive months!)

Summer 2005 Prince of Persia: Warrior Within
September 1, 2005 Gran Turismo 4 Mobile
September 1, 2005 World Poker Tour 2K6
September 6, 2005 Gretzky NHL 06
September 9, 2005 Namco Museum Battle Collection
September 12, 2005 GripShift
September 13, 2005 Final Fantasy VII: Advent Children
September 13, 2005 MediEvil Resurrection
September 13, 2005 World Series of Poker
September 19, 2005 Frantix
September 19, 2005 Ghost in the Shell: Stand Alone Complex
September 20, 2005 Burnout Legends
September 26, 2005 Tiger Woods PGA Tour 06
September 27, 2005 Frogger: Helmet Chaos
September 27, 2005 Madden NFL 06
October 1, 2005 Grand Theft Auto: Liberty City Stories

IT BEGINS
 
SonicMegaDrive said:
:lol Believe me, I'm not anti-Nintendo(or anti-any company for that matter, save maybe EA :D ). I want to see Nintendo stay relevant like the rest of you. I just think Nintendo is walking a very thin line right now, and in order to insure the future of their company, a few changes need to take place.

I'm not a fool, I'm well aware the average person going into the store wants a game where he can kill a boat load of people and then sodimize himself to a sex mod.

I just hope someday Nintendo can harness this and Mario + Friends and get a happy medium.
 
Ruzbeh said:
Well, I can tell you, if the PSP ever gets 100 dollars, I'm getting it (just so I could play my wide-screen pr0n on it, of course). But I really doubt it. Also, PSP games are more expensive than GBA games. I don't know exactly how much in the US, but in Europe, PSP games will cost 60 euros at most and GBA games cost 45 euros at most.

I want a PSP so I can play NES, Genesis, SNES, and MAME games. I'd throw 150 clams toward that cause.

But yeah, PSP games cost a lot more than DS games. They cost a lot more to develop, though, so its understandable.
 
There will come a time, and it won't be long from now, where people will begin to lose interest in the latest Mario, Pokemon, or Zelda titles.

I doubt it. It's been 22 years since Mario came out, 19 years since Zelda, 9 years since Pokemon and they're still 3 of the biggest names in the industry.

I reckon Mario and Zelda etc will be the Superman and Batman of the games industry. They'll be around forever, waxing and waning in importance, but always popular.

You're not wrong that Nintendo need other things too, but I can't see large numbers losing interest in those games you've listed. You can bet your ass if Nintendo went third party tomorrow, the likes of Mario and Zelda would still be some of the best selling games no matter what system. They're not going to go away.
 
sonycowboy said:
Exactly.

A loss isn't necessarily a bad thing as long as your preparing for the future health of the business. I'm not saying Nintendo is flailing, they're extremely profitable, but their current console and handheld business is not healthy for them.

Okay. I don't understand your take on this though. Nintendo is remaining profitable while also preparing for the future. Sony is digging a giant hole while trying to prepare for the future.

It should be easy to pick out which one had a better quarter - and even which one is a healthier business right now.
 
SanjuroTsubaki said:
When your most anticipated game is a movie that comes to DVD the same day as well you need some help.

Are you high?

Gran Turismo 4 Mobile
Burnout Legends
Grand Theft Auto: Liberty City Stories

...in the space of a month. Nintendo will be lucky to get three NDS titles to sell as much as GT4 alone this year.
 
BuzzJive said:
Okay. I don't understand your take on this though. Nintendo is remaining profitable while also preparing for the future. Sony is digging a giant hole while trying to prepare for the future.

It should be easy to pick out which one had a better quarter - and even which one is a healthier business right now.

You're right about that. It's absolutely crystal clear which one had the better quarter. To almost everyone.
 
sonarrat said:
Are you high?

Gran Turismo 4 Mobile
Burnout Legends
Grand Theft Auto: Liberty City Stories

...in the space of a month. Nintendo will be lucky to get three NDS titles to sell as much as GT4 alone this year.

There's a release date for GT4 mobile??? :O (When??)
 
sonarrat said:
Are you high?

Gran Turismo 4 Mobile
Burnout Legends
Grand Theft Auto: Liberty City Stories

...in the space of a month. Nintendo will be lucky to get three NDS titles to sell as much as GT4 alone this year.

Nintendo will probably lucky seeing how they dwarf PSP users. Not saying those games aren't hyped but at least online Advent Children seems to be in everyones sight. People ask me about it every day at work. I've heard few people ask me about GTA but not enough information or previews on it yet at all.

Haven't checked the numbers, last I heard Nintendogs was selling extremly well.
 
sonarrat said:
Are you high?

Gran Turismo 4 Mobile
Burnout Legends
Grand Theft Auto: Liberty City Stories

...in the space of a month. Nintendo will be lucky to get three NDS titles to sell as much as GT4 alone this year.

Are you taking the piss or do you not realise Mario Kart is coming out?

I highly doubt GT4 Mobile will be out this September anyway, unless I've compltely missed some big news. Have we even seen it since it was first shown?
 
sonarrat said:
September 1, from the very page you linked to

That was bojangles, not me.

And I'm 99% sure that's a placeholder date. We haven't seen ANYTHING on this game for quite a while. If it does make that date, I'll be in shock (and get it day 1)
 
Mama Smurf said:
Are you taking the piss or do you not realise Mario Kart is coming out?

I highly doubt GT4 Mobile will be out this September anyway, unless I've compltely missed some big news. Have we even seen it since it was first shown?

They already did all the R&D when they did the console version, so I wouldn't expect the giant delays that plagued GT4 on the PS2. Polyphony may very well be poised to produce a surprise...
 
It'll probably be nearer September 1st next year than this, as if it'll be out in a month's time without being advertised or even shown for a year.
 
sonarrat said:
They already did all the R&D when they did the console version, so I wouldn't expect the giant delays that plagued GT4 on the PS2. Polyphony may very well be poised to produce a surprise...

Right, and they probably just overslept and didn't make it to the PS Meeting a week ago.
 
should be noted that Nintendo's cash flow also turned negative so they're starting to dig into their piggy bank

hardware totals as of June 30, 2005

GBA 67.77M
DS 6.65M
GC 18.76M
 
Bigfonzie said:
Sony has more chance of pulling out of the console business than nintendo does.

there i said it *runs*

You may be right. Nintendo has said before that they'd sooner sink their own ship than make games for a competitor. Though, I'm sure the color of green can change anybody's mind, especially when the pressure's on.
 
*shouts through window*

All im going to say is that Sony is the one with the financial woe, taking the BIG loss on each next gen console and handheld with the rest of its business not doign too good and not much of a future in my opinion. Nintendo are digging themselves into a niche but my god its filled with money SAFE money that they dont need to risk so much to get (unlike its competion).
 
SanjuroTsubaki said:
The Fonze just owned this thread.


AYYYYY.jpg
 
Bigfonzie said:
*shouts through window*

All im going to say is that Sony is the one with the financial woe, taking the BIG loss on each next gen console and handheld with the rest of its business not doign too good and not much of a future in my opinion. Nintendo are digging themselves into a niche but my god its filled with money SAFE money that they dont need to risk so much to get (unlike its competion).

I think Sony Records would go down first, then SCE, but who knows, what if the whole company goes under
 
Link316 said:
should be noted that Nintendo's cash flow also turned negative so they're starting to dig into their piggy bank

So this is now a negative after people have over and over and over complained that Nintendo wasn't digging into their piggy bank?? Rev R&D, I assume.

BuzzJive said:
So wait - Sony's game division having an Operating Loss of 5.9 billion (I assume that's Yen) is healthy, but Nintendo having an Operating Profit of 3.75 billion yen is bad?

Loss vs. Profit.

WTF?

Exactly.[/sarcasm]

It's GAF mathematics.....or it's the same few that just try to spin it in any way possible because they want to see the demise of Nintendo for some reason. They think that if they keep wishing/thinking it enough, they'll actually start to believe it.

Speevy said:
Sony, unlike Nintendo, has coherent plans for the future.

Since you seem to be so privy to the internal workings of exactly what Sony and Nintendo have lined up for the future, please share.

Oh yeah, you don't.
 
SonicMegaDrive said:
It doesn't matter how much profit your company makes quarterly, or how much your company is worth. If you're satisfied with merely 'getting by' then you're going to become irrelevant in the eyes of potential buyers. Let's say Sony's PSP suddenly takes off and leaves Nintendo's portable in the dust. No big deal, right? Theys still have the REAL successor to the GBA waiting in the wings, right? You release an all new portable 2 years later and you find that everybody's still having fun playing their PSP, which by the way, is now very reasonably priced for the entire family. And suddenly nobody cares anymore outside of a few diehards.

I'm not saying this is going to happen. But is certainly a concern for Nintendo.
While it is a concern for Nintendo, for you to say it doesn't matter how much profit your company makes quarterly is woefully inadequate business advice. And if the business is worth billions of dollars, that means they do have assets that cause it to be worth that money. Suggesting otherwise is a little crazy imo.
 
Diablos said:
I'm amazed that Nintendo can keep going despite their constant, never-ending loss of large sums of money.

Why do people keep saying this? Please point to us where Nintendo is losing large sums of money, especially compared to Sony and Microsoft.

To the guy who thinks GT4 Mobile in September: no. It's coming in early 2006 (Feb is the current guess). Not one person on the PSP boards in IGN has mentioned it when citing games they look forward to this year... because it's not coming this year. That whole list itself looks questionable and full of PH dates.
 
Diablos said:
I'm amazed that Nintendo can keep going despite their constant, never-ending loss of large sums of money.


Learn to read, finish high school, take an economics and accounting course in college. We don't need thirty five year old taco bell employees talking about how Nintendo stays in or out of business.
 
Summer 2005 Prince of Persia: Warrior Within
September 1, 2005 Gran Turismo 4 Mobile
September 1, 2005 World Poker Tour 2K6
September 6, 2005 Gretzky NHL 06
September 9, 2005 Namco Museum Battle Collection
September 12, 2005 GripShift
September 13, 2005 Final Fantasy VII: Advent Children
September 13, 2005 MediEvil Resurrection
September 13, 2005 World Series of Poker
September 19, 2005 Frantix
September 19, 2005 Ghost in the Shell: Stand Alone Complex
September 20, 2005 Burnout Legends
September 26, 2005 Tiger Woods PGA Tour 06
September 27, 2005 Frogger: Helmet Chaos
September 27, 2005 Madden NFL 06
October 1, 2005 Grand Theft Auto: Liberty City Stories

Damn, looks like Sony is going to really start pushing the PSP again in September. Its almost like a re-launch. Perhaps they will have the non-value pack on sale for $199 at that time. I think PSPs are going to fly off the shelves this Xmas.
 
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