Profits tumble at Nintendo

Even as a longtime Nintendo fan It isn't suprising that Nintendo is losing a little bit of money. The gamecube is not in demand. I think the exact moment where the gamecube failed in the eyes of most is when they decided that the link cable would overcome online gaming. If they did include online gaming most people would see the gamecube for its strengths rather than its faults. The 1st party titles are excellent, the load times are minimal, and the hardware is built to last. If online was an option 3rd party support would have been there in greater numbers.

I actually lost intrest in Nintendo with the N64 and I bought a Playstation in that generation. I feel as if the Cube is a lot better than the N64 was. Although I own both a PS2 and a Cube I favor the Cube for most games. The load times are better, the graphics are a little cleaner, and the Wavebird is amazingly comfortable in my hands. The PS2 offers some stuff though that can't be had anywhere else including the ability to go online. Although the PS2 is great in its own right it doesn't live up to what the PS1 was for me.

As for Nintendo's future I think they will be in really good shape this next generation.....
I think it will be slow going at first but I think Nintendo has some really good things going to entice 3rd parties this generation:

Easier development of games compared to the XBOX 360 + PS3
(Less cost to them means more profit for them)
Sell old school games (NES, SNES, N64) with no new costs
Disc based media (Lower cost than cartridges + Blu-Ray Discs)
Online (3rd parties can charge a fee if they want to)

Obviously all this is too early to speculate on but I guess we all love to do that. It's funny how when Nintendo loses some money its a big deal but when Microsoft and Sony lose money everyday its expected.
 
[quote name='PittsburghAfterDark']

The Apple vs. PC argument is flawed. Apple makes money with their PC's and always has on a per unit basis. They make more money now from the iPod than their PC's. If Nintendo is breaking even to losing money on the Cube they aren't the Apple of the console market.[/QUOTE]

remember your last sentence started with IF.

On top of that look at their franchise sell through. Zelda will clean up this year like it did a few years back. Maybe even more so.

Systems will sell for zelda and Nintendo had only one 'red" quarter in theri 109+ year history a few years back.

They are not done. If anythign they are at a very neat point in their history.

the PSP proves that the handhelds can be almost what the home system could be. In a few years it may be very possible to see a fully functionable portable/home system.

Who would be the ones to bring that? Nintendo for sure. Given the point that DS is blowing away PSP in sales (worldwide) at this point. If Sony came out with say the PSP 2 and it was their PSP 2 and their PS4, Nintendo would be shortly behind at the least.

My point is this. Nintendo is tapped into the younger market. They have the handheld market on lock. The are innovators.... Rumble, D pad, Analog, Portables, etc etc etc.

If everything they put out next failed they still would have their franchises to fall back on. And given the fact that it would take a complete upset to make them fail. That would help out ther franchise that much more...

What I mean byt that last sentence is this. If a competing system crushes Nintendos (future) system it must be one hell of a system with lots of market share. the biug N could just drop consoles and develope for their competitors and be back in the green in no time.

On top of that I think they have their old systems to fall back on. Say the RE-released the Nes with updated looks or even the classic look. opened the doors to developers they very well might start a retro trend on 8 and 16 bit games.
 
Someone here previously posted that the GameCube now costs $28 to manufacture. If even remotely true, that's a nice margin. As has been mentioned, the linked article describes Nintendo's PROFITS as being down. They are still earning money. Sony and Microsoft are Coke and Pepsi, Nintendo is a Dr Pepper. If the GBA/DS side of things is propping up the GameCube side, so what? Microsoft's software dominance are all that keeps their Home & Entertainment division from being one of the most spectacular failures of business history.

(Where is epobirs?)
 
For the original post-- it's not a big deal, the whole industry is in kind of a lull right now. I'm sure they've wavered a bit before and obvious why their first quarter earnings were weak, they didn't release much. But this Fall and Winter will be an amazing time to be a Nintendo fan-- bunch of great games coming out for the DS and, of course, the new Zelda. People will be buying all of it. Zelda will be a VERY hot Christmas item.

I've noticed that Sony is kind of lacking on the release front this winter, which will help Nintendo related sales(and the 360.)

but anyway, they have so many cash cow franchises, it's not like they are going broke. they could produce a nice bumper crop(like the new Zelda) any time they needed.

their profits fell a bit, but as long as they are profitting, it's all good.

The only mistake I see them making is the GBA Micro-- it's just so not necessary. Yes, the GBA kicks ass and everyone who considers themselves a gamer should own one, but all those people buying GBA Micros could've been DS customers. DUH :roll: :lol:
 
/\ I agree there the micro is kind of a joke but it will sell.. I thinkt hey did this to keep parties interested in the system and so the GBA wouldnt be left for DS by developers.

This way they have a new GBA coming out that will once again sell. It is pushing it though.
 
Nintendogs sold so well in Japan because most homes are incredibly small...Like you can fit a bed and toilet. There would be no where to put a pet of any kind (besides a fish). However, I still think Nintendogs will sell very well here as most stores have tons of pre-orders for the game already with 0 commercials.
 
[quote name='Gamer G']Everybody is always talking about Nintendo but, what about Xbox they lose money on every console still til this day. Then People say they make it on software, Well last time I checked Nintendo had more Million game sellers then the Xbox, So If Nintendo makes a profit even tho small on every console + they produce more 1st gen. games in a year then the competition(which are Nintendo's best selling games) I don't think they have to much to worry about. Profits fall but it isn't just because Sony and Microsoft are outselling them its because there's more competition in the gaming Market now.

Gamecube is my favorite console and maybe I am biased but when you put the fact you realize Nintendo ain't doing so bad.[/QUOTE]

Microsoft still makes billions upon billions every year from their other businesses. They can afford to lose A LOT of money in order to beat the competition.

It's also worth noting that the PSP has been doing very well here in the states. It's hardware and software have been outselling the DS's since release, despite the recent surge in strong DS games.

[quote name='Apossum']I've noticed that Sony is kind of lacking on the release front this winter, which will help Nintendo related sales(and the 360.)
[/QUOTE]

Lacking (I'll only include exclusives)?

Dragon Warrior VIII
Jak X
Kingdom Hearts 2
Ratchet: Deadlocked
Shadow of the Colossus
Shin Megami Tensei: Digital Devil Saga 2
Sly 3
SOCOM 3
Soul Calibur III
We Love Katamari

And that's only if Grandia 3, Shadow Hearts 3, Okami, and Tales of Legendia don't make it out here this year.
 
[quote name='adamsappel']Sony and Microsoft are Coke and Pepsi, Nintendo is a Dr Pepper.[/QUOTE]

So wait a minute - there's going to be no more Dr. Pepper in a few years? Noooooooo!!!!!
 
[quote name='evanft']Microsoft still makes billions upon billions every year from their other businesses. They can afford to lose A LOT of money in order to beat the competition.

It's also worth noting that the PSP has been doing very well here in the states. It's hardware and software have been outselling the DS's since release, despite the recent surge in strong DS games.



Lacking (I'll only include exclusives)?

Dragon Warrior VIII
Jak X
Kingdom Hearts 2
Ratchet: Deadlocked
Shadow of the Colossus
Shin Megami Tensei: Digital Devil Saga 2
Sly 3
SOCOM 3
Soul Calibur III
We Love Katamari

And that's only if Grandia 3, Shadow Hearts 3, Okami, and Tales of Legendia don't make it out here this year.[/QUOTE]


Who has the sales number for year to date and release for US on psp vs ds?

I have seen Japan but its a totally different thing there as DS is 10k short of outselling PS2 YTD.
 
[quote name='javeryh']So wait a minute - there's going to be no more Dr. Pepper in a few years? Noooooooo!!!!![/QUOTE]
Don't you understand the market can only support two sodas?
 
Sony and Microsoft are Coke and Pepsi, Nintendo is a Dr Pepper. If the GBA/DS side of things is propping up the GameCube side, so what? Microsoft's software dominance are all that keeps their Home & Entertainment division from being one of the most spectacular failures of business history.
Click to expand...

This is a great comparison. It doesn't matter how well the other companies are doing, it's how well Nintendo is doing. Dr. Pepper continues to exist for those of us who like it (and hell, sometimes prefer it), as long as the 7UP company is still making a profit on it. Similarly, there will continue to be Nintendo consoles as long as they keep making money.

Come back with the doom and gloom threads after Nintendo has lost money for a few quarters.

There's a reason the Gamecube release schedule is looking bare - it's the Revolution coming out. Typical wind down - just looking noteably worse, I think, by the fact that there isn't a lot of 3rd party devlopment on the Cube. Nintendo has shifted gears to concentrating on the Revolution.


And the talk about Nintendo living off the GBA income and profits being down: You think Microsoft has made a big ol profit on the xbox? Talk about a company keeping a console afloat with their deep pockets. And where do you think Sony is getting all the money to pay for the PS3s that they will surely sell at a loss with Blu-ray drives? By helping pay for R&D and manufacturing with their other divisions, surely. Building a new console is expensive. As the analyst at the end of the article says:

"It just shows that the market is finished with current-generation models," Mr Oya said.
Click to expand...
 
Lifted from a post at Slashdot.com

Sony = $52 Million in the Red
"Sony's game unit, which makes the PlayStation 2 and PlayStation Portable gaming consoles, saw a 64 percent sales increase to 105.4 billion yen ($941.1 million). But the division also booked a 5.9 billion yen ($52.7 million) operating loss due to marketing and research expenses. That loss widened from 2.9 billion yen the previous year.

Shipments of the PSP, which went on sale late last year in Japan and earlier this year in the United States, totaled 2.09 million worldwide, while PS2 sales rose nearly fivefold to 3.53 million units. "

http://www.forbes.com/associatedpress/feeds/ap/2005/07/28/ap2162457.html [forbes.com]

Microsoft = $178 Million in the red
"A 22 percent spike in Xbox sales narrowed the company's losses in its home and entertainment division to $179 million, compared to $340 million a year ago.

"I think that, to some degree, validates Microsoft's business model in getting into the console space in the first place," Rosoff said. "Microsoft is selling more games and fewer consoles, and that's really the business model. They acknowledged it would be expensive to get a foothold in the market."

http://www.forbes.com/associatedpress/feeds/ap/2005/07/22/ap2152617.html [forbes.com]

Nintendo = In the black with a thing called PROFIT
Read there returns here.
http://www.nintendo.com/corp/annual_report.jsp [nintendo.com]

Nintendo is not going to be closing up anytime soon.They have made a big profit in seven of the past 8 quarters.Barly red in the 8 to make any diff for the year, which was deep into the black.
 
[quote name='PittsburghAfterDark']To every Nintendo fanboy the GBA and DS are counted as consoles so Nintendo is and will always be #1. Handheld, console, they're all the same.

You can't argue with those kinds of fans.[/QUOTE]

Cellphones should count as consoles too since they play games and they are portable ... so I guess Nokia, Samsung, etc. are #1 console makers ever :)
 
[quote name='shipwreck']Yes, Nintendo can be profitable based just upon their franchises. They just aren't going to compete in the same league as Microsoft & Sony. I think a lot of Nintendo's future success is riding on Twilight Princess. This game is going to either make people decide, yea I need to buy the Revolution to go along with either my Xbox360 or PS3, or I think I can get by not playing this time around. Nintendo has become the manufacturer of the companion console. People are going to buy an X360 or a PS3, it's going to be Nintendo's goal to convince them that the Revolution should sit there beside it so that you can play Mario and Zelda.

I do expect Nintendo to do quite well this holiday season though. I think Nintendogs is going to be huge for them and drive the sales of DS's for awhile.[/QUOTE]

Good point about the companion console thing. I think it's their safest bet at this point, and it can keep them afloat :)
 
you know what the 30 million people in Tokyo like?

i learned this today walking through Akihabara.

They like Nintendogs, Mario, Zelda, Metroid and porn.

I saw one store with a solid selection of xbox games, other than that, nada.

Even if Nintendo never does well in america, they have such a huge following in Japan with fanboys galore that can keep them in the black.
 
[quote name='Sleepkyng']you know what the 30 million people in Tokyo like?

i learned this today walking through Akihabara.

They like Nintendogs, Mario, Zelda, Metroid and porn.

I saw one store with a solid selection of xbox games, other than that, nada.

Even if Nintendo never does well in america, they have such a huge following in Japan with fanboys galore that can keep them in the black.[/QUOTE]

They like the Metroid as in Metroid Prime? I thought that game didn't do too well on account that it was a FPS, which historically does not do well in Japan.
 
All MS and Nintendo have to do in Japan is release one title.
"Monsters Ramming Huge Tentacles into Purple Haired Girls with Big Eyes" instant hit! Make it Fucia camouflage, and it's a classic.
 
[quote name='adamsappel']Don't you understand the market can only support two sodas?[/QUOTE]

Oh man Dr Pepper is doomed, they should go 3rd party and just make surup for both comapnies. Why put the soda in cans when you can make the soda and have MS & sony put it in cans for you ?
 
[quote name='KingDox']Oh man Dr Pepper is doomed, they should go 3rd party and just make surup for both comapnies. Why put the soda in cans when you can make the soda and have MS & sony put it in cans for you ?[/QUOTE]

Actually, Dr. Pepper is already a third party. Sixty percent of Dr. Pepper is bottled and distributed by both Coca-Cola and Pepsi depending on the region. Maybe Nintendo could do something like that?
 
Anyone have nintendo corporate email?

If they want to pick up portable sales have them release earthbound for gba.
 
[quote name='Ecofreak']Lifted from a post at Slashdot.com

Sony = $52 Million in the Red
"Sony's game unit, which makes the PlayStation 2 and PlayStation Portable gaming consoles, saw a 64 percent sales increase to 105.4 billion yen ($941.1 million). But the division also booked a 5.9 billion yen ($52.7 million) operating loss due to marketing and research expenses. That loss widened from 2.9 billion yen the previous year.

Shipments of the PSP, which went on sale late last year in Japan and earlier this year in the United States, totaled 2.09 million worldwide, while PS2 sales rose nearly fivefold to 3.53 million units. "

http://www.forbes.com/associatedpress/feeds/ap/2005/07/28/ap2162457.html [forbes.com]

Microsoft = $178 Million in the red
"A 22 percent spike in Xbox sales narrowed the company's losses in its home and entertainment division to $179 million, compared to $340 million a year ago.

"I think that, to some degree, validates Microsoft's business model in getting into the console space in the first place," Rosoff said. "Microsoft is selling more games and fewer consoles, and that's really the business model. They acknowledged it would be expensive to get a foothold in the market."

http://www.forbes.com/associatedpress/feeds/ap/2005/07/22/ap2152617.html [forbes.com]

Nintendo = In the black with a thing called PROFIT
Read there returns here.
http://www.nintendo.com/corp/annual_report.jsp [nintendo.com]

Nintendo is not going to be closing up anytime soon.They have made a big profit in seven of the past 8 quarters.Barly red in the 8 to make any diff for the year, which was deep into the black.[/QUOTE]

Great post, thanks. Nice to see facts backed up by some credible sources.
 
[quote name='Morrigan Lover']Nope. Nintendo is #1 in consoles sold this generation. The GBA is still ahead of the PS2 in units sold. The DS is ahead of the PSP in N. America. Plus they have their Gamecube sales.[/QUOTE]
Uh....the GBA is not a console, it's a handheld. And the GameCube is deader than Natalie Holloway.
 
[quote name='VanillaGorilla']Uh....the GBA is not a console, it's a handheld. And the GameCube is deader than Natalie Holloway.[/QUOTE]

Then he should edit it to systems to make sure every one is able to understand him and all.
 
[quote name='Msut77']Anyone have nintendo corporate email?

If they want to pick up portable sales have them release earthbound for gba.[/QUOTE]

This man is wise. We must have not only aport, but a port of the NES one as well. In fact, if they add some new content...oh man, my face a'splode.
 
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