Nintendo looks to double profits in '07

[Natoma]

http://money.cnn.com/2007/01/10/new...arnings.reut/index.htm?postversion=2007011009

Japan's Nintendo Co. expects annual profit to more than double this year to above market forecasts on strong sales of its DS handheld console and game software, sending shares up 2.4 percent.

Nintendo DS, which opens like a book and lets users control play with a stylus, has allowed the company to reach new user groups such as women and senior citizens with software that includes "Nintendog," a pet training game, and quiz programs.

To expand further in the world's $30 billion game industry, Nintendo is also betting on its new Wii console, which was launched for the year-end shopping season in the Americas, Japan and Europe, to fend off competition from Microsoft Corp.'s (Charts) Xbox 360 and Sony Corp.'s (Charts) PlayStation 3.

Nintendo raised its operating profit estimate 28 percent to a record of ¥185 billion ($1.6 billion) for the year to March 31, from a previous forecast of ¥145 billion. It posted a ¥90.3 billion profit last business year.

The surging sales of Nintendo's game products is contrasting to woes at Tokyo-based Sony, which last year had to cut its shipment target for its competing PlayStation Portable and delay the launch of its PS3 console.

Sony expects a loss of ¥200 billion at its game unit this business year.

Analysts had expected Nintendo to post a profit of ¥155 billion, based on an average forecast from 17 brokerages compiled by Reuters Estimates.

The earnings upgrade "underlines the strength of the DS and that the Wii is off to a flying start," said Hiroshi Kamide, an analyst at KBC Securities.

Shares of Nintendo (Charts) closed up 2.4 percent in Tokyo after the company announced its revised forecasts, against a 1.7 percent decline in the overall market. Sony stock fell 2 percent.

Good time to buy some stock.

 

[tongue_of_colicab]

Yeah nintendo stock are almost constantly raising for months now.

 

[Carl B]

I think the 'good' time to buy was months ago.

The writing was on the wall and I myself was going to invest heavily, but my funds were otherwise tied up. Which is a shame, because this truly was a 'gimme' for anyone with:

a) any knowledge of the financial markets

and

b) any knowledge of the gamign industry

 

[TheChefO]

I think the 'good' time to buy was months ago.

The writing was on the wall and I myself was going to invest heavily, but my funds were otherwise tied up. Which is a shame, because this truly was a 'gimme' for anyone with:

a) any knowledge of the financial markets

and

b) any knowledge of the gamign industry

Seriously?

I thought most were under the impression that Wii would sell well but not this well and there were certainly a few question marks. I don't recall anyone predicting 4 million sales or wii outselling ps3 before launch but I could be wrong.

 

[Skrying]

Seriously?

I thought most were under the impression that Wii would sell well but not this well and there were certainly a few question marks. I don't recall anyone predicting 4 million sales or wii outselling ps3 before launch but I could be wrong.

How could you not have predicted Wii out selling the PS3, just a quick look at the expected launch units available for the PS3 would have made that a very quick, and easy prediction. However, Nintendo also has a never little gaming device called the DS that just continues to sell like crazy, add the fact that Nintendo is just pulling off a monstrous amount of software sells off of the unit as well.

 

[Acert93]

Seriously?

I thought most were under the impression that Wii would sell well but not this well and there were certainly a few question marks. I don't recall anyone predicting 4 million sales or wii outselling ps3 before launch but I could be wrong.

Where have you been? The momentum for Wii picked up at E3 and snowballed. Product image had been strong, presales were strong, it had strong advertising, and was the "hot pick" for Christmas. Mainstream sites like MSNBC and CNN, as well as traditional TV morning shows, were covering the Wii and how unique and exciting it was.

And it gets a semi-free pass on software and "working the wrinkles out" based on NDS and actually could ride the wave of NDS, especially as it was fitting into a pricing structure where it had no real competition from MS or Sony.

What is more hazy, in my mind, are sales beyond 2007. As software begins becoming the key catalyst for new hardware sales and repeat software customers and MS and Sony begin to drop prices and flood the market with software and services it will largely depend on Nintendo having games that appeal and keeping/drawing strong 3rd party support. Of course Wii is niche enough that it may not have to do so in a traditional sense and can truly be a "2nd" console for mainstream gamers.

 

[TheChefO]

Where have you been? The momentum for Wii picked up at E3 and snowballed. Product image had been strong, presales were strong, it had strong advertising, and was the "hot pick" for Christmas. Mainstream sites like MSNBC and CNN, as well as traditional TV morning shows, were covering the Wii and how unique and exciting it was.

And it gets a semi-free pass on software and "working the wrinkles out" based on NDS and actually could ride the wave of NDS, especially as it was fitting into a pricing structure where it had no real competition from MS or Sony.

What is more hazy, in my mind, are sales beyond 2007. As software begins becoming the key catalyst for new hardware sales and repeat software customers and MS and Sony begin to drop prices and flood the market with software and services it will largely depend on Nintendo having games that appeal and keeping/drawing strong 3rd party support. Of course Wii is niche enough that it may not have to do so in a traditional sense and can truly be a "2nd" console for mainstream gamers.

heh - hey there's a big difference between "they could sell 4 million" and "they will sell 4 million".

I don't recall hearing optimism that strong is all I'm saying. Hence the shock and awe at the sales numbers for N.

And I had no idea they had the wii on morning shows etc ... no wonder the thing was hyped to soccor moms et al! I thought they might be in trouble come launch time as I had not seen much in the way of advertisements in the weeks prior. I guess they weren't targeting me but they found buyers and that's all that matters.

 

[TheChefO]

What is more hazy, in my mind, are sales beyond 2007. As software begins becoming the key catalyst for new hardware sales and repeat software customers and MS and Sony begin to drop prices and flood the market with software and services it will largely depend on Nintendo having games that appeal and keeping/drawing strong 3rd party support. Of course Wii is niche enough that it may not have to do so in a traditional sense and can truly be a "2nd" console for mainstream gamers.

I think N won't have much difficulty in that regard as long as they can keep their core audience happy with titles that utilize the interface well. It wouldn't hurt for them to not be displayed side by side with 360/ps3 either so maybe it's time they partner with non-traditional sales channels and get wii in places that games normally don't sell such as sharper image or mac stores etc. The more comparisons that are made in that time frame the worse for them but if they can avoid them it should be smooth sailing for them.

I still can't believe their having this much success with something called "Wii".

 

[Acert93]

I still can't believe their having this much success with something called "Wii".

Nah, it was just a setup for all sorts of jockular humor and fruedian slips. My favorite:

"Nintendo screws competition with their Wii". Pure comedy gold And we get 5 more years of it!

 

[Carl B]

I think N won't have much difficulty in that regard as long as they can keep their core audience happy with titles that utilize the interface well. It wouldn't hurt for them to not be displayed side by side with 360/ps3 either so maybe it's time they partner with non-traditional sales channels and get wii in places that games normally don't sell such as sharper image or mac stores etc. The more comparisons that are made in that time frame the worse for them but if they can avoid them it should be smooth sailing for them.

Well that's the thing - there *is* no real core audience anymore; rather a gigantic net that appeals to a broad swath of people in a very simple and intuitive (and fun) way. The core franchises, Mario, Zelda, Metroid, etc... will be sort of 'bizzaro' versions of their previous incarnations if they rely too heavily on the new interface. These were 'deeper' games, in the traditional gameplay sense, and frankly a standard controller interface might suit the longtime fans better. Not saying spin-offs of such and new titles based on them won't draw many a person in, but there are some games where I would honestly just prefer a 'standard' interface for; and those include the classic IPs.

I'm curious as to what Metroid Prime 3 will be like, I'll put it like that.

 

[TheChefO]

but there are some games where I would honestly just prefer a 'standard' interface for; and those include the classic IPs.

I'm curious as to what Metroid Prime 3 will be like, I'll put it like that.

I thought that was why they were still selling the gamecube??

If you want funky wiimote interface = Wii
If you want traditional interface = GC
If you want 20m+poly/sec shader happy grapnics = ps360

That way everyone's happy

 

[Teasy]

Well that's the thing - there *is* no real core audience anymore; rather a gigantic net that appeals to a broad swath of people in a very simple and intuitive (and fun) way. The core franchises, Mario, Zelda, Metroid, etc... will be sort of 'bizzaro' versions of their previous incarnations if they rely too heavily on the new interface. These were 'deeper' games, in the traditional gameplay sense, and frankly a standard controller interface might suit the longtime fans better. Not saying spin-offs of such and new titles based on them won't draw many a person in, but there are some games where I would honestly just prefer a 'standard' interface for; and those include the classic IPs.

I'm curious as to what Metroid Prime 3 will be like, I'll put it like that.

Wii's controller suits a game like Metroid Prime perfectly, so I'm a little bit confused by your comment there.

Also Wii's controller can be used just the same as a traditional controller in all the games you mentioned. Main Wii controller to move the game camera (instead of a analog stick) and the Nunchuck analog stick to move your character.

 

[Carl B]

Wii's controller suits a game like Metroid Prime perfectly, so I'm a little bit confused by your comment there.

Well, different opinions on it, all I can say. Even Nintendo's own reps have said you'll fare better in a game like Super Smash using a traditional controller layout, and part of the appeal of Metroid Prime IMO was that it was a deep game, that made use of every single button on the GC controller. I would prefer things not be reduced to wrist-flicks and such.

 

[Skrying]

Well, different opinions on it, all I can say. Even Nintendo's own reps have said you'll fare better in a game like Super Smash using a traditional controller layout, and part of the appeal of Metroid Prime IMO was that it was a deep game, that made use of every single button on the GC controller. I would prefer things not be reduced to wrist-flicks and such.

Wait, a game is made deep by the number of buttons it uses? That's a absolute joke if there ever was one. A game is deep from its gameplay and its gameplay will not become magically less deep because now instead of holding down A while moving the stick to the left can be done with just a flick to the left.

 

[Carl B]

Wait, a game is made deep by the number of buttons it uses? That's a absolute joke if there ever was one. A game is deep from its gameplay and its gameplay will not become magically less deep because now instead of holding down A while moving the stick to the left can be done with just a flick to the left.

But it may very well be made less precise; agreement? I stand by my 'depth reduction' comment for Metroid Prime.

And I'm taking it you've played Metroid Prime to be making these comments, because if not, then I think you really underestimate how many variations on 'wrist flicking' would have to be instituted to replace the button-mapping that was present.

 

[Skrying]

I have played Prime.

I would also agrue that the Wiimote would be more precise, and by your thinking have more depth.

 

[Johnny Awesome]

Yet the Wiimote isn't precise IMO. That's my main area of concern. If Nintendo can make the Wiimote offer finer control than Wii Sports offers, the Wii will do fine with traditional genres. If not, then this will be problematic. Verdict is still out on this one IMO.

 

[Carl B]

And by precise I didn't even mean 'point and shoot,' I meant... is it going to know your wrist flick means weapon change every time you do it? Pressing a button, that's no issue...

 

[Skrying]

And by precise I didn't even mean 'point and shoot,' I meant... is it going to know your wrist flick means weapon change every time you do it? Pressing a button, that's no issue...

I wasn't talking point and shoot either, I think it could do what you're talking about, but I doubt they'll have it setup that way. Maybe a button (there are those things on the Wiimote still) for such. Its hard to say, but strongly believe you can still maintain that Prime feel with a Wiimote and I believe improved upon it even.

 

[Scott_Arm]

Well, different opinions on it, all I can say. Even Nintendo's own reps have said you'll fare better in a game like Super Smash using a traditional controller layout, and part of the appeal of Metroid Prime IMO was that it was a deep game, that made use of every single button on the GC controller. I would prefer things not be reduced to wrist-flicks and such.

That is the weirest thing I've ever heard ...