Nintendo nets double the dough

[Natoma]

http://www.gamespot.com/news/2005/05/26/news_6126572.html

Nintendo today announced a net profit of 87.42 billion yen ($809 million) for the business year ended March 31, 2005, a figure more than two and a half times that of the 33.19 billion yen ($307 million) earned in fiscal year 2004. Sales kept steady at 515 billion yen ($4.77 billion), while operating profit rose by a small margin of 3.6 percent to 112 billion yen ($1.03 billion). Sales in North America were 257.9 billion yen ($2.39 billion), and sales in Europe were 121.3 billion yen ($1.12 billion). Meanwhile, sales in Japan totaled 132.0 billion yen ($1.223 billion).

Nintendo attributes its profit gain to a strong yen, earning 21.8 billion yen ($202 million) on $5.1 billion in dollar-denominated assets thanks to favorable exchange rates. The company also saw increased profits thanks to the success of its Nintendo DS; the company has sold 5.27 million DS hardware units and 10.5 million software units since the handheld's launch in December. The DS's success came at the cost of Nintendo's other hardware, however, as unit sales of the Game Boy Advance were down by 12.4 percent. However, its game unit sales were up 12.9 percent, thus making up for the fall. GameCube console unit sales were down by 21 percent, while software unit sales were up by a small margin of 1.02 percent.

Damn. No matter how you slice it, more than doubling your profit year-over-year is amazing.

 

[mckmas8808]

And thats why they will never be out of the console or handheld race. They could stay in third place in consoles forever and still profit. Great job Nintendo.
________
Nevada Marijuana Dispensaries

 

[MechanizedDeath]

Yeah, as annoyed as I am by their attitude to the market, they still make money. Which at least lets them hang around long enough that they might eventually "get with the times". They are a money machine though. PEACE.

 

[Geeforcer]

Gamecube sales down 21%? I thought it was going fine.

 

[PC-Engine]

Gamecube sales down 21%? I thought it was going fine.

They are since they're making a profit on hardware.

 

[Geeforcer]

Gamecube sales down 21%? I thought it was going fine.

They are since they're making a profit on hardware.

So by selling LESS hardware, they’ll make MORE profit! Pure Genius!

Wait a minute....

 

[jvd]

they also make moeny off thier own tittles . Its apparent they are doing something right as unlike ms's game divison nintendo is making money

 

[BOOMEXPLODE]

What's funny is that the gaming divisions of Sony and MS have been showing poor financial results, and they're perceived as the "winners." I guess winning doesn't guarantee victory (???).

 

[Acert93]

What's funny is that the gaming divisions of Sony and MS have been showing poor financial results, and they're perceived as the "winners." I guess winning doesn't guarantee victory (???).

Depends. If the goal is long term and to minimize your competition so that you can maximize profits down the road then no.

As gaming continues to grow and expand (a goal of all three) the industry grows; but in another way as the technology advances so does the oppurtunity to reach out to offer new media services and products. MMOs is a good example. Downloadable expansion packs and micro transactions are another.

If Sony and MS are investing in dominance now, while it may not pay dividends now, it could eventually pay much more. This is what I hope Nintendo avoids fall prey to. Great to make profits, but if you get too far out of the game catching up will be near impossible. I love Nintendo games, but I want them to be relevant. If they can make it through 1 more generation after this HW I think the time of HW relevance will be behind us... and at that point creativity and the quality of the product are all that will matter. At least I hope... (could end up being just another jazzed up pop culter product where real games disappear... that is the downside of going mainstream).

 

[PC-Engine]

Gamecube sales down 21%? I thought it was going fine.

They are since they're making a profit on hardware.

So by selling LESS hardware, they’ll make MORE profit! Pure Genius!

Wait a minute....

More profit means doing GREAT. Doing FINE is not the same as doing GREAT.

 

[TEXAN]

Sales kept steady at 515 billion yen ($4.77 billion)

Sega Sammy is bigger.

Revenues business year ending March 31, 2005

Nintendo - 515B Yen = $4.771B
Sega Sammy - 515.67B Yen = $4.777B

 

[PC-Engine]

Sales kept steady at 515 billion yen ($4.77 billion)

Sega Sammy is bigger.

Revenues business year ending March 31, 2005

Nintendo - 515B Yen = $4.771B
Sega Sammy - 515.67B Yen = $4.777B

That's not profit though.

 

[TEXAN]

Don't worry, it shall soon manage that aswell

According to company estimates -

2007 = $787,547,482
2008 = $833,873,805
2009 = $1B+
2010 = $1B+

 

[Nightz]

I will repeat Nintendo is like BMW they dont need to be the market leader to be profitable and successfull.

 

[RingWraith]

The company could propably survive off of its Pokemon franchise alone. And I am not referring to the games. (cards, toys, cartoons, etc.)

 

[mckmas8808]

These are numbers that I found. It shows the profits of all three companies in the past seven years. I don't think Sony's doing to bad.

Year ----- Sony --- ------------ Nintendo ------------ Microsoft
1998 ---- 974,000,000 ------ 629,000,000
1999 ---- 1,130,000,000 ---- 645,000,000
2000 ---- 730,000,000 ------ 421,000,000
2001 ---- -409,000,000 ---- 726,000,000
2002 ---- 623,000,000 ------ 800,000,000 ------ -750,000,000
2003 ---- 939,000,000 ------ 560,000,000 ------ -1,191,000,000
2004 ---- 650,000,000 ------ 316,000,000 ------ -1,215,000,000
2005 ---- 406,000,000 ------ 809,000,000 ------ -58,000,000

Totals ---- 5,043,000,000 ---- 4,906,000,000 ---- -3,214,000,000

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Honda cl200 specifications

 

[Clashman]

That's just for the games' divisions of each respective company, correct?

 

[mckmas8808]

Yes just games divisions.
________
Honda Dio

 

[Carl B]

These are numbers that I found. It shows the profits of all three companies in the past seven years. I don't think Sony's doing to bad.

Year ----- Sony --- ------------ Nintendo ------------ Microsoft
1998 ---- 974,000,000 ------ 629,000,000
1999 ---- 1,130,000,000 ---- 645,000,000
2000 ---- 730,000,000 ------ 421,000,000
2001 ---- -409,000,000 ---- 726,000,000
2002 ---- 623,000,000 ------ 800,000,000 ------ -750,000,000
2003 ---- 939,000,000 ------ 560,000,000 ------ -1,191,000,000
2004 ---- 650,000,000 ------ 316,000,000 ------ -1,215,000,000
2005 ---- 406,000,000 ------ 809,000,000 ------ -58,000,000

Totals ---- 5,043,000,000 ---- 4,906,000,000 ---- -3,214,000,000

Hey Mckmas, do you have a link as to where you found those numbers? I've been kind of loosely calculating these things myself whenever the need arises, but if there's somewhere that actually tracks the console business' profits - well I just gotta know what it is.

 

[Fox5]

Gamecube sales down 21%? I thought it was going fine.

I'm surprised that it's only down 21%, considering that there have been like no games since Resident Evil 4, and none until Zelda comes out.

BTW, I bet nintendo is making a killing on the GBA and DS hardware at this point in time.