Nintendo's Financial Report

[Trawler]

BTW, the situation has NOTHING to do with SEGA situation, NINTENDO is making HUGE profits, SEGA was loosing plenty of money before even the launch of the very good Dreamcast.

So keep your words for you if you have nothing interesting to say.

(no hard feelings intended)

None taken! Consider the facts though. If the trend of sales continue into the next few quarters, would it make financial sense for Nintendo to keep supporting the GC? They're not losing money on the hardware (yet!) but the cost to market/support/develop must be a sizeable amount.

 

[Teasy]

Trawler

Reasons why Nintendo won't give up on GC:

1: They're making money.
2: They have there pride and they will not give up the market they have dominated in the past without a fight, if it comes to that.
3: Leaving the console market would have a detrimental effect on Nintendo's handheld market.
4: Giving up the console market would take away Nintendo's freedom to do everything the way they want it done.

Really I think that Nintendo, under Iwata, realise that lots of mistakes were made with GC from a image point of view, and they now just have to make the best of it and make sure they get it right with there next console.

 

[marconelly!]

This has been done to death, and everyone should know that MS quoted NPD TRST numbers (which are 'sold')

As far as I know, that is not true. In one of MS' reports they even specifficaly said the number they quoted is 'shipped'. I'll try looking for that, and I just know who will have that handy

 

[Tagrineth]

None taken! Consider the facts though. If the trend of sales continue into the next few quarters, would it make financial sense for Nintendo to keep supporting the GC? They're not losing money on the hardware (yet!) but the cost to market/support/develop must be a sizeable amount.

"In late-breaking news today, completely out of nowhere, Gekko started costing $200 per chip to produce..."

 

[Trawler]

They're not losing money on the hardware (yet!) but the cost to market/support/develop must be a sizeable amount.

"In late-breaking news today, completely out of nowhere, Gekko started costing $200 per chip to produce..."

The reason I mentioned 'yet' was due to the rumours floating around the web that another GC price drop is in the works to help stimulate sales. I wonder how much fat they have left to trim on their profit margins?

 

[notAFanB]

They're not losing money on the hardware (yet!) but the cost to market/support/develop must be a sizeable amount.

"In late-breaking news today, completely out of nowhere, Gekko started costing $200 per chip to produce..."

The reason I mentioned 'yet' was due to the rumours floating around the web that another GC price drop is in the works to help stimulate sales. I wonder how much fat they have left to trim on their profit margins?

do not see a problem with this as long as they stay out of the red (this gen anyway).

 

[LisaJoy]

Just in case anyone does not know.
those numbers are not sales, they are shipments, Nintendo has always consistantly shipped a lot of units, but the sales have never been as strong as expected, overtime there has grown a surplus of about 6 million gamecubes worldwide. That many has definately not sold in this quarter, so Nintendo has cut shipments until September.

Sorry to but into the conversation, it just seemed some people were throwing around false information to belittle the great little company, facts are Nintendo still has a strong world standing right above Microsoft, I am not saying one is better than the other, but its stupid to spend each day saying how well Microsoft is doing with the Xbox, and then in the same sentence belittle how Nintendo is doing with the GC, when they are practically neck and neck.

 

[notAFanB]

don't know if this is relevent but magicbox has posted that Nintendo has corrected the figue to 800K.

- Nintendo clarified that they have sold 800,000 units of GameCube worldwide in the first quarter of 2003, not the 80,000 units reported by other agencies such as Lycos, Reuters and Bloomberg. Nintendo has reported a 11.45 billion yen ($95.18 million) sales for the quarter, thanks to the strong performance of Pokemon Ruby and Sapphire in North America.

tho it's themagicbox so take it as you will.

 

[LisaJoy]

From what I have read among other sites, the actual hardware sales from Nintendo have not been clarified by anyone at all, only how many they have shipped in which, the 80,000 is correct, the sales are not actually in yet.

 

[Tagrineth]

The reason I mentioned 'yet' was due to the rumours floating around the web that another GC price drop is in the works to help stimulate sales. I wonder how much fat they have left to trim on their profit margins?

Well, considering that when they dropped to $150 they started breaking even, and that was some time ago now, I'm pretty sure they've brought the hardware down at least $50 by now.

 

[zurich]

Well the 80,000k figure still hasn't been corrected in their PDF, sooo...

 

[function]

Trawler

Reasons why Nintendo won't give up on GC:

1: They're making money.
2: They have there pride and they will not give up the market they have dominated in the past without a fight, if it comes to that.
3: Leaving the console market would have a detrimental effect on Nintendo's handheld market.
4: Giving up the console market would take away Nintendo's freedom to do everything the way they want it done.

Really I think that Nintendo, under Iwata, realise that lots of mistakes were made with GC from a image point of view, and they now just have to make the best of it and make sure they get it right with there next console.

I don't think Nintendo will give up on the GC either, but companies exist to maximise profits rather than maintain the status quo. If Nintendo can make *more* money by dropping the GC (and future consoles) to go 3rd party, you can bet there would be (and possibly are) people in Nintendo considering it as an option.

If they did decide to leave hardware, the ideal time would be as the next generation of PS and Xbox consoles are arriving. I'm still expecting to see another Nintendo console though, unless they're bought.

 

[jandar]

How many times must Nintendo say they are not getting out of the hardward business?

They are not going third party.

 

[Paul]

Nintendo isn't going anywhere anytime soon. As long as they have Gamboy bringing them in millions, their console business will continue.

 

[Geeforcer]

don't know if this is relevent but magicbox has posted that Nintendo has corrected the figue to 800K.

- Nintendo clarified that they have sold 800,000 units of GameCube worldwide in the first quarter of 2003, not the 80,000 units reported by other agencies such as Lycos, Reuters and Bloomberg. Nintendo has reported a 11.45 billion yen ($95.18 million) sales for the quarter, thanks to the strong performance of Pokemon Ruby and Sapphire in North America.

tho it's themagicbox so take it as you will.

Actually, that makes even less sense. How much does Nintendo sell GCs to retailers for? Can't imagine it being much less then $100 a unit. 800K at $100 is $80 million. Their total revenue was apparently $95 million, which leaves $15 million worth of GC software, GBA software and hardware and royalties.

 

[zurich]

don't know if this is relevent but magicbox has posted that Nintendo has corrected the figue to 800K.

- Nintendo clarified that they have sold 800,000 units of GameCube worldwide in the first quarter of 2003, not the 80,000 units reported by other agencies such as Lycos, Reuters and Bloomberg. Nintendo has reported a 11.45 billion yen ($95.18 million) sales for the quarter, thanks to the strong performance of Pokemon Ruby and Sapphire in North America.

tho it's themagicbox so take it as you will.

Actually, that makes even less sense. How much does Nintendo sell GCs to retailers for? Can't imagine it being much less then $100 a unit. 800K at $100 is $80 million. Their total revenue was apparently $95 million, which leaves $15 million worth of GC software, GBA software and hardware and royalties.

Every retailer I've spoken to says they make maybe $5, if that, on hardware sales.. so its more like $144.99 for each GC

 

[notAFanB]

while I don't want to rattle anybodies cage here the BBC has posted an article here:

http://news.bbc.co.uk/1/hi/business/3134651.stm

how does still affect Nintendos situation?

 

[jandar]

notAFanB -

all that does really is show that Nintendo has made too many Gamecubes expecting a higher number of SOLD units.

Stop production for a couple of months, clear the inventory. Lots of companies do this. (might also give them time to updae manufacturing lines to increase profit/decrease costs)

Once inventory levels drop to a level they want, they can start the lines back up.

 

[Tagrineth]

It's funny. If Sony had done that with, say, standalone DVD players, nobody would care. But because Nintendo is doing it with GameCube, GC is suddenly fucked and going to die.

 

[Qroach]

There's nothing funny about this at all. Halting production at this time of year, when you expect your largest number of units needed heading into Thanksgiving/Christmans, is not a good thing!

Publishers and retailers are getting luke warm on gamecube. They have been for a while now, and it's getting harder and harder for publishers to sell GC product to retailers.

Nintendo stopping production even if it's only for 1 month is not a good thing at this time of year.This isn't the season where you should be stopping. This is the time of year where you begin ramping up for a holiday rush. Also, if Nintendo sold 80,000 or 800,000 this past quater, there's no WAY they are going to sell or "clear out" 5-6million units by september (or whenever they stated). Not when things aren't going well and sales are slow.

Some people here can deny it to the end, but this is another bad sign. Just like store clearing out thier stock of gamecubes at reduced prices already.