N’s profit fall short due to lagging GC sales

[Goldni]

I dont know about that nonamer. Last I saw it was around 3m for Japan.

And about GBA's tie ratio. I'd like to see the new numbers with Pokemon now being out. It should generate higher tie numbers for GBA. But SP will have a reverse effect..unless when ppl bought/buy SP they pick up some games as well.

 

[Goldni]

Guys I got this from the IGN boards. Is he right?

prudjuggle:

The report didn't make anything up. BUT, it was worded poorly and the information it gave was selective.

1) It reported the fiscal sales of 5.6 million.
2) Then it stated that XBOX was expected to sell 9 million units by June 30, 2003.
3) Then it quoted Nintendo's orginal sales estimate of 10 million consoles sold by March 31, 2003.

All this is true. But since it didn't report Gamecube total sales, it seems to show that XBOX has a sizable lead. Also it seems to imply that Nintendo misses its projections by a HUGE mark of 4.4 million instead of the real number of 600,000.

I don't mind bad news, and I own both consoles. But I really hate the laziness of most jounalists. They don't check their facts and just pass along a story from another news publication. In cases such as this it turns into a game of telephone where the story changes along the way. The L.A. Times reported that Nintendo missed its projections by 44%, a bald faced lie!!!

Was Nintendo's original numbers 10 mu installed by March 31st? If so than it's more like a 4% miss than a 44% miss. Where is the press announcement from Nintendo last year? Did they say they expected 10m GCN 's worldwide from launch to March 31st or 10m just in 2002-03 fiscal year?

 

[cybamerc]

Ozymandis:

> You call me a troll, and yet you don't seem me slinging insults around
> here.

I don't see it as an insult. It's a simple word, an adjective. Calling your post stupid was entirely justified. If you feel offended by that the solution is rather easy: stop saying stupid things.

As for being a troll, it has nothing to do with the words that you use but rather the context in which they're used, the meaning behind them. You do nothing but post Sega and M$ propaganda and putting down Nintendo. Every time you talk about Nintendo you do so in an inflammatory way.

> I wonder just how much Nintendo makes off of Gamecube

It makes money on the hardware and it money on the games. Eventhough the games may not be selling like they used to we're still talking more than a million units globally for most titles.

> but I would think that Nintendo's shrinking home console marketshare
> has hurt them

Of course it has, but that doesn't mean there isn't still money to be made. The weak Dollar is also to blame for the lower forecast.

> it seems to me that cell phone games are quite close to handheld ones

I don't think it's a very attractive market for content providers. While the phones will sell, the games won't.

> I'd think that Nintendo could be a huge player there if they wanted to
> be.

But there is no reason why such a move should come at the expense of the console business.

> 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?

Because M$ is doing a better job controlling the media than Nintendo is. But you're not the media and because a journalist is being ignorant doesn't excuse you being it as well.


Calling another member's post(s) stupid is seen as an insult. Try to refrain from doing it again.

 

[Geeforcer]

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?

You are slightly off on GC (Total sales: 9.3-9.4 Million)

 

[Geeforcer]

Guys I got this from the IGN boards. Is he right?

prudjuggle:

The report didn't make anything up. BUT, it was worded poorly and the information it gave was selective.

1) It reported the fiscal sales of 5.6 million.
2) Then it stated that XBOX was expected to sell 9 million units by June 30, 2003.
3) Then it quoted Nintendo's orginal sales estimate of 10 million consoles sold by March 31, 2003.

All this is true. But since it didn't report Gamecube total sales, it seems to show that XBOX has a sizable lead. Also it seems to imply that Nintendo misses its projections by a HUGE mark of 4.4 million instead of the real number of 600,000.

I don't mind bad news, and I own both consoles. But I really hate the laziness of most jounalists. They don't check their facts and just pass along a story from another news publication. In cases such as this it turns into a game of telephone where the story changes along the way. The L.A. Times reported that Nintendo missed its projections by 44%, a bald faced lie!!!

Was Nintendo's original numbers 10 mu installed by March 31st? If so than it's more like a 4% miss than a 44% miss. Where is the press announcement from Nintendo last year? Did they say they expected 10m GCN 's worldwide from launch to March 31st or 10m just in 2002-03 fiscal year?

http://www.spoocher.com/modules.php?name=News&file=article&sid=29

At a press conference in Japan today, Nintendo announced that it will lower both its profit and its hardware shipment expectations for the second quarter and entire year of 2002, thanks to lagging demand and a stronger-than-expected yen value through this summer.

The company was originally planning to make 30 billion yen (about $245 million) during the three-month period ending September 30. Now, though, they're looking at around 7 billion yen ($57 million) in profit, a drop-off of 86 percent. As a result, Nintendo's estimated profit for 2002 will go down to 110 billion yen ($897 million)—quite a lot, but still over 40 percent less than what they promised investors earlier. Nintendo also announced that GameCube and Game Boy Advance sales would amount to less than they expected for the year. The company now plans to sell 10 million GameCubes (down from 12 million) and 15 million GBAs (down from 19 million) during fiscal 2002. During the conference, Nintendo president Satoru Iwata brought up the slow international economy as one reason for the lower forecasts. "Especially in Japan and Germany, the consumer mind has chilled, leading to lower hardware sales," Iwata said. "[Japanese] consumers are keeping their wallets shut tight." However, the chief cause of this sudden drop-off has less to do with hardware sales and more to do with the rising value of the Japanese yen—a bad thing to have when you do as much overseas business as Nintendo does. The company estimated at the beginning of the quarter that the value of the dollar and euro would be 130 and 115 yen, respectively. Nowadays, though, the dollar's worth more like 123 yen, which means that Nintendo lost around 29 billion yen simply in converting their goods between Japanese and U.S. pricing schemes. Still, the news wasn't all bad from Nintendo today. GC software sales are higher than expected (55 million games sold by the end of the year), although GBA games are lagging behind. The company also got a windfall of 19 billion yen from selling their stake in former second party Rare—"Microsoft paid out a surprisingly high amount of money," commented Iwata. As Nintendo approaches the Christmas season, Iwata expects the GameCube to pull ahead of Microsoft's Xbox and attain a firm second-place stance in the U.S. console market by 2003. "Our home console share is around 20 percent right now," he said, "but I think we'd be able to raise this to around a third." We'll see what Microsoft thinks about that.

 

[Kolgar]

Nintendo's got an image problem, and until they do something about it, they're destined to capture less and less of the home console market until finally they're relegated to handhelds.

The problem? They've been unable to capture the adult gamers, and no wonder - their efforts to do so have been half-hearted at best. They've expended more energy giving lip service to the concept than they have anything else.

It doesn't help that they're so intent on selling first-party games that third-party publishers can't find a decent home on their consoles.

Can't Nintendo see this? It's the same problem they faced with N64. They're blinded by arrogance, and simply unwilling to face the problem.

Whatever. The result is that for a while at least, Nintendo will hang on in the home market because Gamecube still makes a decent second or third console. They'll get by with putting out three or maybe four big first-party games a year, and the rest of us will continue to spend more and more of our gaming time and dollars on PS2 and Xbox.

Kolgar

 

[thundermonkey]

I'm new here, but this might put a little hole in those sales numbers if true.

http://www.thestreet.com/_tscs/tech/billsnyder/10079541.html

Which would be odd because hasn't MS been shouting second place for a while?

 

[Kolgar]

Either way, Nintendo's gotten leapfrogged by a newcomer for the second consecutive generation.

But hey, they're still profitable, right?

Kolgar

 

[Teasy]

Leapfrogged in what way exactly?

 

[Ozymandis]

Leapfrogged in what way exactly?

I believe he's referring to marketshare.

 

[Tahir2]

I'm new here, but this might put a little hole in those sales numbers if true.

http://www.thestreet.com/_tscs/tech/billsnyder/10079541.html

Which would be odd because hasn't MS been shouting second place for a while?

Perversely enough, this short-range setback will actually help Microsoft's bottom line because the company loses an estimated $100 on every Xbox it sells.

When did the -$100 per console figure become accepted fact, I just remember some long heated debates on this from a few people on this forum

MS 9 million projection = not met
Nintendo has sold more than 9 million

So why are people saying that Nintendo are in thrid place when it doesnt look like they are?

It is another problem with perceived image and reality getting muddled up that will hurt only Nintendo and benefit MS.

The only people that have leapfrogged Nintendo at this time is SONY. MS has however caused a few ruffled feathers in the marketplace, but its perceived image of being in 2nd place may not be true... in total sales.