N’s profit fall short due to lagging GC sales

[Goldni]

Hey dont diss Mega Man. I've always liked MM games.

Btw, was'nt MS projections 9 mu total? I mean like 9 mu from launch to June 03? Or where they really projecting 9 mu for XB this past fiscal year? I really dont think MS will come near meeting that. Anyone have an estimate of totals sold since launch. Ive got :

GCN US= 4m
Eu= 1.7m
Japan= 3.5m
rest of world= .5m

GCN total= 9.7m since launch

XB US= 5.5m
Eu= 1.8m
Japan= .4m
rest of world= .9m

XB total= 8.6m since launch


Does this sound near correct?

 

[Tagrineth]

Hey dont diss Mega Man. I've always liked MM games.

Who's dissing Megaman? The asterisks were emphasis, not sarcasm. I was just typing in a word processor so I got a little too used to *'s for boldface... Always happens to me after extended periods in StarOffice (or Word2k at school).

 

[Sonic]

That sounds about right. I could have sworn Xbox was past the 9 million units mark already. I thought that happened back in mid February? That would sound about right and they should be at something like 9.4 million worldwide right now, but that's just an estimation on my own behalf.

The GCN numbers I've seen support anywhere from your numbers Goldni all the way up to 10+ million sold. It wouldn't surprise me at all if right now that Nintendo has had a resurgence in the first quarter and now with Zelda if the worldwide sales aren't around 10.3 million. I'm sure that number is off by a large margin, but I'm hoping that margin is maybe a couple hundred thousand units under what GCN is at worldwide right now.

 

[Geeforcer]

Allow me to repeat: PROFITABLE. You don't shut down a business that brings in money.

I don't see Nintendo getting rid of GC either, but this line of thinking is very flawed. If I have a million dollars and I put in a checking account that earns 1% dividend for a year, at the end of the year I will have $1010000. While this will be profitable on paper, I could have easily realized much better returns elsewhere (By getting a 6.5% COD, for example). Taking into account opportunity cost, I would actually end up losing money (55,000 compared to the aforementioned COD). The same concept applies to businesses. The company I worked has shut down a division that, while technically profitable, did not provide a return on investment comparable to other divisions, and thus was losing money once the cost of opportunity is calculated. By investing the money saved by shutting down the low-return division into other, more profitable units, our profits have dramatically increased within 6 quarters.

Moral of the story? Yes, you DO shut down profitable business if you can realize better returns elsewhere.

 

[Ozymandis]

Ozymandis:

> I wonder if one day Nintendo might decide that they'd getting a better
> return by focusing solely on handhelds.

I wonder if one day I won't have to read stupid posts like your's. The GameCube is profitable. Allow me to repeat: PROFITABLE. You don't shut down a business that brings in money. Besides the portable games market is pretty much being milked for all it's worth as it is.



No need to insult another forum member for discussing his/her own opinion.

"Stupid"? You're a rude little fellow, aren't you? :|


Anyways, GeForcer already replied nicely. I always figured that ROI is important to a corporation, and that's what I meant in my original post. Do I think that Nintendo will go third-party or step out of the home console business? It's not likely. But I wouldn't say it's impossible either.

if u look at the post you will see that a mod has told him not to insult another forum memeber for discussing his/her own opinion , there is no need for u to go down to his level is there ? If you do he will then respond to u calling him rude and it will take this thread way of course when it doesn't need to go that way. If you need to speak to a mod , pm sonic or jvd . thank u

Well, I don't feel that I sunk all the way to his level, as he was in fact being rude, but it was unecessary for me to make that comment. So I'm sorry.

Don't be sorry . I'm just trying to change the way we respond to those posts. I think you'd agree with me that by responding the way you did there is a high chance he will respond back with more rude comments.

 

[rabidrabbit]

I think Nintendo will not make a GC2 (or whaterver name), but instead make a next gen handheld device with licenced Cell (or whatever name) technology.
It will be PS3 and Grid (or whatever...) compatible, but will be sold with Nintendo Game Boy name, and have Nintendo exclusive games.

 

[Magnum PI]

[...]

i beg you pardon but this post looks a little bit schizo, like if two distinct personnalities of ozymandis were arguing b/w them..

should we expects lots of posts like this now ?

at each occurence of a word like 'rude' or 'stupid' ?

 

[Teasy]

What is going on with Ozy's post? Is that seriously a mod editing a post to say that Ozy shouldn't call someone rude?.. tell me its not true

We need some help from mods here yeah, but not like that. Saying that someone is being rude is hardly offensive now is it.

Also why edit the post to talk to him?.. its confusing. PM him if you want to talk to him.

Or have I got the wrong end of the stick here and Ozy has finally flipped and started talking to himself? Just joking don't ban me

 

[London Geezer]

What is going on with Ozy's post? Is that seriously a mod editing a post to say that Ozy shouldn't call someone rude?.. tell me its not true

We need some help from mods here yeah, but not like that.

WOW.. its like this superior being taking over our minds......

 

[Teasy]

It doesn't take a superior being to take over your mind london-boy

 

[London Geezer]

It doesn't take a superior being to take over your mind london-boy

really why is that

 

[Teasy]

Don't sulk man. I thought we we're just joking with each other here?

 

[London Geezer]

Don't sulk man, I thought we we're just joking with each other here?

no i wanna sulk! mmmphh!!


sorry mate im just a bit tired, u guys know me, i start talking nonsense when im tired.. even more than my usual nonsense

 

[cybamerc]

Unspecified Mod:

> No need to insult another forum member for discussing his/her own
> opinion.

No need to correct me for expressing my own opinion. What he said was stupid. I could have called it uninformed speculation to appease the politically correct but Ozymandis is so much more than just uninformed, he's a troll.



Geeforcer:

> Yes, you DO shut down profitable business if you can realize better
> returns elsewhere.

Not if you have enough money to keep that business going. Diverting more money into the handheld business would most likely not make a huge difference in sales. The GBA is a massive success and you can't realistically expect the market for handheld console hardware to grow considerably. Sure Nintendo could start selling GBA chipsets that can be implemented in other types of hardware but there is no reason why that should come at the cost of the home console business. Nintendo is also by far the biggest supplier of handheld software and while there might be some potential left in the low-tie ratio the only way to increase software sales would either be to come up with another Pokémon type phenomenon (something that can't be calculated) or lower prices significantly which would be risky as there are costs that have to be covered and no guarantee that sales would increase to the point where they would make up for the lower profit margin.

Not to mention, that Nintendo is very much ruled by pride and pulling out of the home console business is simply not an option for them.



Ozymandis:

> "Stupid"? You're a rude little fellow, aren't you?

I'm just being honest.

> I always figured that ROI is important to a corporation

Of course it is but you still don't dump a business that brings in a huge amount of money. By that logic they (and everyone else) should pull out of Europe since adminstrative and distributive costs are much higher than in the US and Japan when seen in relation to sales.

Moreover, you're assuming that the handheld business offers a better return which it very well may but we don't know.

And I don't ever see you wondering if M$ will dump the Xbox because despite it being a massive financial failure. You're nothing but a troll.

 

[Johnny Awesome]

 

[Teasy]

Posting nothing but a roll eye's face is just so pointless! Its one of the things mods should crack down on IMO.

 

[wazoo]

Posting nothing but a roll eye's face is just so pointless! Its one of the things mods should crack down on IMO.

Add Roll eye commenting also

hum, I'm owned

 

[Ozymandis]

cybamerc:

"I'm just being honest."

You call me a troll, and yet you don't seem me slinging insults around here. IMO you're a part of the problem here. You should really clean your posts up. At least you seem to have dropped the profanity, at least temporarily.



"Of course it is but you still don't dump a business that brings in a huge amount of money. By that logic they (and everyone else) should pull out of Europe since adminstrative and distributive costs are much higher than in the US and Japan when seen in relation to sales."

Like I said in my original post, I wonder just how much Nintendo makes off of Gamecube. If it's really a big profit, that's fine, but I would think that Nintendo's shrinking home console marketshare has hurt them. This article seems to agree withthat.

"Moreover, you're assuming that the handheld business offers a better return which it very well may but we don't know."

I would imagine that it does. And in regards to you saying that the handheld market probably doesn't have much growth potential, it seems to me that cell phone games are quite close to handheld ones. There's going to be a lot of growth in that market in the future, and I'd think that Nintendo could be a huge player there if they wanted to be.

"And I don't ever see you wondering if M$ will dump the Xbox because despite it being a massive financial failure."

I hate to answer a question with a question, but why don't you see these kinds of articles by market analysts pronouncing doom-and-gloom on Xbox and speculating on MS pulling their console?

"You're nothing but a troll."

Mods, I don't see how these constant comments are helping discussion. It's getting a little tiresome.

What is going on with Ozy's post? Is that seriously a mod editing a post to say that Ozy shouldn't call someone rude?.. tell me its not true

We need some help from mods here yeah, but not like that. Saying that someone is being rude is hardly offensive now is it.

Also why edit the post to talk to him?.. its confusing. PM him if you want to talk to him.

Or have I got the wrong end of the stick here and Ozy has finally flipped and started talking to himself? Just joking don't ban me

No, I'm not talking to myself, although I very well may be crazy

 

[jvd]

Heh us new mods are trying to figure out how to mod this board the best way we are going to make mistakes so bare with us while we learn. We are trying to do the best we can. There is no need to insult someone or call them stupid and of course there is no point in responding to them . As it is there was already another 2 posts having to do with that one person calling the other stupid. I have recieved pms regarding that and so i steped in. It was that or locking the thread. Of course i'd end up locking alot of threads or deleting alot of posts. If i can't get to them in time then they would already have responses to them .

 

[nonamer]

Hey dont diss Mega Man. I've always liked MM games.

Btw, was'nt MS projections 9 mu total? I mean like 9 mu from launch to June 03? Or where they really projecting 9 mu for XB this past fiscal year? I really dont think MS will come near meeting that. Anyone have an estimate of totals sold since launch. Ive got :

GCN US= 4m
Eu= 1.7m
Japan= 3.5m
rest of world= .5m

GCN total= 9.7m since launch

XB US= 5.5m
Eu= 1.8m
Japan= .4m
rest of world= .9m

XB total= 8.6m since launch


Does this sound near correct?

I know GC's Japan's numbers are closer to 2.5M then your numbers. That's all I know.