wii's in second quarter
- Thread starter Qslugs
- Start date
[quote name='Qslugs']I bet nintendo will dump wii's on everyone the second quarter of the year. I am assuming they are holding off on shipping (or building them) to ensure 2 quarters of good profit.[/QUOTE]
oh wait..
Maybe they are waiting until they actual get their own stocks back to sell more systems. This way right after the acquisition their stock value will increase!!
In reality they will eventually (I think) be able to meet demand in the second quarter. I doubt its for the reasons you mention though. They have only had 1 unprofitable quarter in their entire company history.
oh wait..
Maybe they are waiting until they actual get their own stocks back to sell more systems. This way right after the acquisition their stock value will increase!!
In reality they will eventually (I think) be able to meet demand in the second quarter. I doubt its for the reasons you mention though. They have only had 1 unprofitable quarter in their entire company history.
thegarageband
CAGiversary!
[quote name='bmulligan']Let me get this straight - Nintendo sells every Wii at a profit yet they don't want to sell them until the second quarter ?
Remember, crack is for dummies.[/quote]
Or our President.
Remember, crack is for dummies.[/quote]
Or our President.
[quote name='Qslugs']I bet nintendo will dump wii's on everyone the second quarter of the year. I am assuming they are holding off on shipping (or building them) to ensure 2 quarters of good profit.[/QUOTE]
I bet your girlfriend will dump you the second quarter of the year.
I bet your girlfriend will dump you the second quarter of the year.
Magehart
CAGiversary!
[quote name='BIG5']I bet your girlfriend will dump you the second quarter of the year.[/quote]
Lame like a Charlie Brown Halloween.
Anyways, I think Nintendo just wants as many units out as fast as possible. They NEED to bolster their ranks so they can get some real 3rd party support.
Lame like a Charlie Brown Halloween.
Anyways, I think Nintendo just wants as many units out as fast as possible. They NEED to bolster their ranks so they can get some real 3rd party support.
Nintendo isn't holding anything back. With the inevitable new colors/dvd playback/etc, they would want to dump as many of the current consoles on early adopters as they can, and hope that when the new versions are released they eventually buy another one.
[quote name='Qslugs']I bet nintendo will dump wii's on everyone the second quarter of the year. I am assuming they are holding off on shipping (or building them) to ensure 2 quarters of good profit.[/QUOTE]
It sounds like you don't know that Nintendo is constantly shipping out units. You just don't see them becuase they sell out almost immediately. Therefore, you think that Nintendo is holding back shipments.
I guarantee you that every retail outlet in my area gets regular weekly shipments of Wii and the sell out within the hour. I've seen them with my own eyes. They aren't holding anything back.
Holding back shipments means less profit for them since they've paid to build one and it hasn't sold to give them profit. Remember to take econ when you get to highschool.
It sounds like you don't know that Nintendo is constantly shipping out units. You just don't see them becuase they sell out almost immediately. Therefore, you think that Nintendo is holding back shipments.
I guarantee you that every retail outlet in my area gets regular weekly shipments of Wii and the sell out within the hour. I've seen them with my own eyes. They aren't holding anything back.
Holding back shipments means less profit for them since they've paid to build one and it hasn't sold to give them profit. Remember to take econ when you get to highschool.
Qslugs
CAGiversary!
[quote name='bmulligan']It sounds like you don't know that Nintendo is constantly shipping out units. You just don't see them becuase they sell out almost immediately. Therefore, you think that Nintendo is holding back shipments.
I guarantee you that every retail outlet in my area gets regular weekly shipments of Wii and the sell out within the hour. I've seen them with my own eyes. They aren't holding anything back.
Holding back shipments means less profit for them since they've paid to build one and it hasn't sold to give them profit. Remember to take econ when you get to highschool.[/quote]
Wow, touchy people here.
For the record, I have a wii, I got it last month, I paid no more than actaul price and I didnt wait in a line. I am well aware of how many wii's are moving, thus my comment. I'm not a fanboy or a hater, just trying to start a disucssion. Seems like this may be the last time I try that manuver.
I guarantee you that every retail outlet in my area gets regular weekly shipments of Wii and the sell out within the hour. I've seen them with my own eyes. They aren't holding anything back.
Holding back shipments means less profit for them since they've paid to build one and it hasn't sold to give them profit. Remember to take econ when you get to highschool.[/quote]
Wow, touchy people here.
For the record, I have a wii, I got it last month, I paid no more than actaul price and I didnt wait in a line. I am well aware of how many wii's are moving, thus my comment. I'm not a fanboy or a hater, just trying to start a disucssion. Seems like this may be the last time I try that manuver.
GeneralJenkins
CAGiversary!
ya slugs... u r not allowed to have an opinion.
honestly i hope ur right as i still havent found or seen one at retail.
honestly i hope ur right as i still havent found or seen one at retail.
But your premise is faulty. If the 'topic' were a little more thoughtful and complete, perhaps it would warrant a discussion instead of a needling. Instead of a complete, coherent thought you dangle a one sentence flame bait over the coals. What did you expect ?
You should explain your reasoning if you were serious in the first place.
You should explain your reasoning if you were serious in the first place.
Qslugs
CAGiversary!
http://www.next-gen.biz/index.php?option=com_content&task=view&id=5034&Itemid=2
Also mentioned in the latest cagcast. Exactly the point I thought I was making.
Wii shall see. (couldn't resist.)
Also mentioned in the latest cagcast. Exactly the point I thought I was making.
Wii shall see. (couldn't resist.)
[quote name='Qslugs']I bet nintendo will dump wii's on everyone the second quarter of the year. I am assuming they are holding off on shipping (or building them) to ensure 2 quarters of good profit.[/quote]
You do realize that the Wii has already been out for two quarters right? The second quarter of this year will be the third quarter that Wiis will be on store shelves.
Plus, it just doesn't make sense for Nintendo to hold any back when they are making a profit on each system. They don't need to boost to their April-June quarter with Wiis, the US release of Pokemon will no doubt sell a million plus units per game during the second quarter and cause DS Lites fly off the shelves even faster then they do now.
You do realize that the Wii has already been out for two quarters right? The second quarter of this year will be the third quarter that Wiis will be on store shelves.
Plus, it just doesn't make sense for Nintendo to hold any back when they are making a profit on each system. They don't need to boost to their April-June quarter with Wiis, the US release of Pokemon will no doubt sell a million plus units per game during the second quarter and cause DS Lites fly off the shelves even faster then they do now.
Well, it does and it doesnt make sense for them to hold units back. After thinking about it, methinks there may be a grain of salt to this. The Wii surpassed all sales forecasts. Nintendo met and exceeded sales figures for this fiscal year (ends March 31). With what some would consider a weak lineup of games for the beginning of this fiscal year, Nintendo probably wants something out there to keep sales up so that they don't drop back down from last quarter. It could create the perception that the "fad is passing" if profits slip substantially from one quarter to the next. So even though it completely makes sense to sell every unit they can because they profit on every unit, when Nintendo execs are trying to play a big picture game and keep the stock price as high and stable as they can, if they think sales in other areas (software) will slip a bit, they could have held consoles back to spread the wealth from the launch into the slower software months.
And I'm not saying that it's necesarily true, I'm just saying that people who said they aren't holding anything back (like I did earlier), could be wrong.
And I'm not saying that it's necesarily true, I'm just saying that people who said they aren't holding anything back (like I did earlier), could be wrong.
[quote name='drfunk85']Well, it does and it doesnt make sense for them to hold units back. After thinking about it, methinks there may be a grain of salt to this. The Wii surpassed all sales forecasts. Nintendo met and exceeded sales figures for this fiscal year (ends March 31). With what some would consider a weak lineup of games for the beginning of this fiscal year, Nintendo probably wants something out there to keep sales up so that they don't drop back down from last quarter. It could create the perception that the "fad is passing" if profits slip substantially from one quarter to the next. So even though it completely makes sense to sell every unit they can because they profit on every unit, when Nintendo execs are trying to play a big picture game and keep the stock price as high and stable as they can, if they think sales in other areas (software) will slip a bit, they could have held consoles back to spread the wealth from the launch into the slower software months.
And I'm not saying that it's necesarily true, I'm just saying that people who said they aren't holding anything back (like I did earlier), could be wrong.[/QUOTE]
Nintendo doesnt need to bump its second quarter results. For as long as Nintendo has had financial numbers publically reported they have been in the black for all but one quarter.
Plus, while they make money on system sales, the bread and butter for a game console is game sales. Nintendo makes more if you take home a couple of games now rather than waiting until you can pick up games used (no profit to them) or at a reduced price (possibly less of a cut for them). There is a certain strategy to creating consumer demand, but it is a very dangerous game to play and no company would still be playing that game once their product is actually released.
Nintendo themselves denies the acusation that they are holding consoles back.
I'm glad that you are trying to think through the situation logically, but in this case it is falling flat.
Finally, if Nintendo was stock piling Wii's someplace, someone would have leaked that information.
And I'm not saying that it's necesarily true, I'm just saying that people who said they aren't holding anything back (like I did earlier), could be wrong.[/QUOTE]
Nintendo doesnt need to bump its second quarter results. For as long as Nintendo has had financial numbers publically reported they have been in the black for all but one quarter.
Plus, while they make money on system sales, the bread and butter for a game console is game sales. Nintendo makes more if you take home a couple of games now rather than waiting until you can pick up games used (no profit to them) or at a reduced price (possibly less of a cut for them). There is a certain strategy to creating consumer demand, but it is a very dangerous game to play and no company would still be playing that game once their product is actually released.
Nintendo themselves denies the acusation that they are holding consoles back.
I'm glad that you are trying to think through the situation logically, but in this case it is falling flat.
Finally, if Nintendo was stock piling Wii's someplace, someone would have leaked that information.
[quote name='foltzie']Nintendo doesnt need to bump its second quarter results. For as long as Nintendo has had financial numbers publically reported they have been in the black for all but one quarter.
Plus, while they make money on system sales, the bread and butter for a game console is game sales. Nintendo makes more if you take home a couple of games now rather than waiting until you can pick up games used (no profit to them) or at a reduced price (possibly less of a cut for them). There is a certain strategy to creating consumer demand, but it is a very dangerous game to play and no company would still be playing that game once their product is actually released.
Nintendo themselves denies the acusation that they are holding consoles back.
I'm glad that you are trying to think through the situation logically, but in this case it is falling flat.
Finally, if Nintendo was stock piling Wii's someplace, someone would have leaked that information.[/quote]
I'm not saying its TRUE. I never said it was.
I did however say that it made sense.
Just because they have always profited doesn't mean that they wouldn't be afraid of their profits dropping significantly. I don't know the numbers, but hypothetically say they profitted 1 billion last quarter, and then the next quarter that dropped to 100 million. Even though they still profitted, it would be considered a bad quarter for them coming off such an impressive one. If their profits dropped, their stock price would drop. Just because you profit doesn't it doesn't mean it was succesful. It's a matter of how much you profit.
Also, MY WHOLE POINT WAS ON GAME SALES. Jesus. You said the bread and butter was game sales. Exactly. THEY ARENT COMING OUT WITH AS MANY GAMES TO SUSTAIN PROFITS THIS QUARTER. THAT IS WHY THEY WOULD HOLD BACK SYSTEMS. THEIR GAMES WILL NOT DO AS WELL THIS QUARTER BECAUSE THEY ARENT AS GOOD AND THUS THEY MIGHT LOOK TO SUSTAIN THEIR PROFITS FROM THEIR CONSOLES. ADDITIONALLY, IF THEY HOLD BACK CONSOLES, THE NEW USERS WHO WOULD HAVE BOUGHT A CONSOLE + x GAMES LAST QUARTER WILL NOW BE BUYING THOSE OLD GAMES THIS QUARTER.
It's fine if they deny the accusation. As they probably aren't. However, IT DOESNT MEAN THAT THE LOGIC FALLS FLAT. ESPECIALLY NOT FOR ANY OF THE REASONS THAT YOU LISTED.
Plus, while they make money on system sales, the bread and butter for a game console is game sales. Nintendo makes more if you take home a couple of games now rather than waiting until you can pick up games used (no profit to them) or at a reduced price (possibly less of a cut for them). There is a certain strategy to creating consumer demand, but it is a very dangerous game to play and no company would still be playing that game once their product is actually released.
Nintendo themselves denies the acusation that they are holding consoles back.
I'm glad that you are trying to think through the situation logically, but in this case it is falling flat.
Finally, if Nintendo was stock piling Wii's someplace, someone would have leaked that information.[/quote]
I'm not saying its TRUE. I never said it was.
I did however say that it made sense.
Just because they have always profited doesn't mean that they wouldn't be afraid of their profits dropping significantly. I don't know the numbers, but hypothetically say they profitted 1 billion last quarter, and then the next quarter that dropped to 100 million. Even though they still profitted, it would be considered a bad quarter for them coming off such an impressive one. If their profits dropped, their stock price would drop. Just because you profit doesn't it doesn't mean it was succesful. It's a matter of how much you profit.
Also, MY WHOLE POINT WAS ON GAME SALES. Jesus. You said the bread and butter was game sales. Exactly. THEY ARENT COMING OUT WITH AS MANY GAMES TO SUSTAIN PROFITS THIS QUARTER. THAT IS WHY THEY WOULD HOLD BACK SYSTEMS. THEIR GAMES WILL NOT DO AS WELL THIS QUARTER BECAUSE THEY ARENT AS GOOD AND THUS THEY MIGHT LOOK TO SUSTAIN THEIR PROFITS FROM THEIR CONSOLES. ADDITIONALLY, IF THEY HOLD BACK CONSOLES, THE NEW USERS WHO WOULD HAVE BOUGHT A CONSOLE + x GAMES LAST QUARTER WILL NOW BE BUYING THOSE OLD GAMES THIS QUARTER.
It's fine if they deny the accusation. As they probably aren't. However, IT DOESNT MEAN THAT THE LOGIC FALLS FLAT. ESPECIALLY NOT FOR ANY OF THE REASONS THAT YOU LISTED.
The idea has everything to do with long term success and nothing to do with just the next quarter. What about the sales that are lost when the inevitable "Nintendo profits drop. Wii fad over. PS3 the future." story that would hit towards the end of this quarter?
People looking to buy a Wii in the last month will still buy one in the next month if they couldn't get their hands on it. Those people have already been convinced. In fact, created shortages might help to drive the hype and sell more. It is better for long term stability to have steady, continual growth and profits.
People looking to buy a Wii in the last month will still buy one in the next month if they couldn't get their hands on it. Those people have already been convinced. In fact, created shortages might help to drive the hype and sell more. It is better for long term stability to have steady, continual growth and profits.
[quote name='drfunk85']The idea has everything to do with long term success and nothing to do with just the next quarter. What about the sales that are lost when the inevitable "Nintendo profits drop. Wii fad over. PS3 the future." story that would hit towards the end of this quarter?
People looking to buy a Wii in the last month will still buy one in the next month if they couldn't get their hands on it. Those people have already been convinced. In fact, created shortages might help to drive the hype and sell more. It is better for long term stability to have steady, continual growth and profits.[/QUOTE]
I respect that you are really thinking about this, I really do; however, there isnt a single credible business practice to support the idea (and I welcome you to cite a book somewhere to suggest choking your supply is better for long term growth).
Nintendo has sold 6 million consoles since November of last year. (source VGcarts.org) Why would they hold back supply when they could potential overtake the 360 and declare total dominance in the current "Next Gen War"? Even if their second quarter proffits took a hit, no one in the game industry would care because the largeest install base drives the 3rd party games.
Casual customers dont care about a companies financial health. They care about the number of games available for the system. Does the fact that Microsoft loses money quarter over quarter hinder the 360s sales?
Plus I'll stick with my secondary argument. If Nintendo was holding up consoles someplace, it would be leaked by an warehouse employee someplace.
People looking to buy a Wii in the last month will still buy one in the next month if they couldn't get their hands on it. Those people have already been convinced. In fact, created shortages might help to drive the hype and sell more. It is better for long term stability to have steady, continual growth and profits.[/QUOTE]
I respect that you are really thinking about this, I really do; however, there isnt a single credible business practice to support the idea (and I welcome you to cite a book somewhere to suggest choking your supply is better for long term growth).
Nintendo has sold 6 million consoles since November of last year. (source VGcarts.org) Why would they hold back supply when they could potential overtake the 360 and declare total dominance in the current "Next Gen War"? Even if their second quarter proffits took a hit, no one in the game industry would care because the largeest install base drives the 3rd party games.
Casual customers dont care about a companies financial health. They care about the number of games available for the system. Does the fact that Microsoft loses money quarter over quarter hinder the 360s sales?
Plus I'll stick with my secondary argument. If Nintendo was holding up consoles someplace, it would be leaked by an warehouse employee someplace.
In certain markets, say a finite natural resource, a case can be made that choking, or guarding, supply does ensure more stable longterm growth.
In Nintendo's case, it is more a matter of insatiable demand. No one has a number for what how many wii's will meet the demand right now. When it hits the 10 million mark, when it hits 15 million? It is all guesswork. But considering nintendo has more consoles produced than any other system in the same initial time span, it is loopy to suggest they are holding systems back.
I would also say that system sales drive game sales, not the other way around. The sooner nin can show a large installed user base, the better for a whole host of reasons, primarily being publisher support.
In Nintendo's case, it is more a matter of insatiable demand. No one has a number for what how many wii's will meet the demand right now. When it hits the 10 million mark, when it hits 15 million? It is all guesswork. But considering nintendo has more consoles produced than any other system in the same initial time span, it is loopy to suggest they are holding systems back.
I would also say that system sales drive game sales, not the other way around. The sooner nin can show a large installed user base, the better for a whole host of reasons, primarily being publisher support.
bread's done