Nintendo's quarterly profit, sales plunge

[Guden Oden]

PCE, I'm not interested in any "opinion" you have regarding sony, you're a raving loonie so I'm just going to disregard your post and not even bother to read it. You have nothing interesting to say on the subject, all you can offer is inflammatory exaggerations and lies. Go away.

Why you've not been banned ages ago is far beyond me.

 

[PC-Engine]

PCE, I'm not interested in any "opinion" you have regarding sony, you're a raving loonie so I'm just going to disregard your post and not even bother to read it. You have nothing interesting to say on the subject, all you can offer is inflammatory exaggerations and lies. Go away.

Why you've not been banned ages ago is far beyond me.

I can say the exact same thing about your post and why you haven't been banned...oh wait you were when you posted as Grall...

BTW the thread is about Nintendo's financials not SONY quality or lack thereof.

 

[NavNucST3]

In the 80's Sony was (in my circle of aquaintances) synonymous with high tech, quality and reliability. More recently I hear that their reputation has diminished. I know we've got a VCR that's never be quite right from when we got it. But then again I've never met anyone with a duff PS2 despite often hearing how unreliable they are.

Without cold, hard figures I guess reliability's a very subjective matter. It only takes one highly valued (though not necessarily expensive; valued in contribution to one's lifestyle) product to go wrong and the manufacturer is severly tarnished in the owner's eyes. I mean, if someone came to me and said Samsung make unreliable drives, I'd rate that as just a hearsay spot of unreliable info. But if my Samsung Spinpoint drive dies and takes with it all my valuable info, I'll hate Samsung forever and never trust another Samsung product again!

The other issue is that when people "love" a company, they are more forgiving when something does happen. I would bet money that people who have said "I have never had a problem with ..." merely over look any deficiencies that product may have, yet specifically look for problems with other mfrs. products, as an example look what happens when pics are posted for their respective consoles. It defines "Ignorance is bliss", if you don't know how something is supposed to work/look, how would you know how to compare it with something else.
Other than the psp, I can't name a Sony product that I think is better than their competition, this includes their pro-broadcast camera business(betasp/HDV), which are generally much more expensive than competing products.


EDIT: To stay on topic, just how is Nintendo going to become profitable by years end? (serious question, I dont follow them much)

 

[Hardknock]

EDIT: To stay on topic, just how is Nintendo going to become profitable by years end? (serious question, I dont follow them much)

Nintendo didn't post a loss, they just posted less profit than last year during the same quarter. Now if you're curious as to how Nintendo will outdo last years profits for the entire year?

1. GBA Micro will be HUGE this holiday season.
2. DS will finally be getting a huge selection of AAA software.
3. Much anticipated Legend Of Zelda.

 

[Powderkeg]

Nintendo didn't post a loss, they just posted less profit than last year during the same quarter. Now if you're curious as to how Nintendo will outdo last years profits for the entire year?

1. GBA Micro will be HUGE this holiday season.
2. DS will finally be getting a huge selection of AAA software.
3. Much anticipated Legend Of Zelda.

What I want to know is how to they plan on staying profitable if the Revolution flops as hard as most people expect it to.

As a corporation, Nintendo will make money hand over fist as long as they have a good handheld market, but as far as consoles go, they are rapidly approaching the point where they won't be able to make a profit at all in that market. (If they are now) I fear for their future in consoles, because it seems that there, they are on a downward spiral, and nothing seems to indicate any change in that trend.

 

[PC-Engine]

Nintendo didn't post a loss, they just posted less profit than last year during the same quarter. Now if you're curious as to how Nintendo will outdo last years profits for the entire year?

1. GBA Micro will be HUGE this holiday season.
2. DS will finally be getting a huge selection of AAA software.
3. Much anticipated Legend Of Zelda.

What I want to know is how to they plan on staying profitable if the Revolution flops as hard as most people expect it to.

As a corporation, Nintendo will make money hand over fist as long as they have a good handheld market, but as far as consoles go, they are rapidly approaching the point where they won't be able to make a profit at all in that market. (If they are now) I fear for their future in consoles, because it seems that there, they are on a downward spiral, and nothing seems to indicate any change in that trend.

Nintendo makes money on the home console side from sales of it's own games. You can bet they'll be selling millions of copies of 1st party titles on Revolution.

 

[NavNucST3]

EDIT: To stay on topic, just how is Nintendo going to become profitable by years end? (serious question, I dont follow them much)

Nintendo didn't post a loss, they just posted less profit than last year during the same quarter. Now if you're curious as to how Nintendo will outdo last years profits for the entire year?

1. GBA Micro will be HUGE this holiday season.
2. DS will finally be getting a huge selection of AAA software.
3. Much anticipated Legend Of Zelda.

Thanks, I mis-spoke or mis-read (early morning eyes). I have never been one for hand-helds, but I am thinking about taking a look at some this weekend, to see what they offer me.

 

[jvd]

At the moment Sony seems to be to be in a transition phase, which means not very profitable, but they're setting up for some long term goals centered around this content delivery idea. Of all the companies fighting for this market Sony seems in the best position to me.

This statement I agree with totally.

Sure . If you want to believe it will last for at least 2 years (this year and 2006 ) as the ps3 will be a huge looser ( loss per system ) and the psp will still be loosing money per system sold



As for nintendo things will change. In nov they will have zelda which will sell at least a million units in the usa and most likely 2 in japan .

Starting in august we get nintendogs , animal crossing , mario kart and others on the ds which will move units and software .

SO nintendo will most likely be up for the year . I think its next year there will be problems through out the year . The cube will be dead and the ds while still selling well wont be able to offset the loss of the big selling games on the cube

 

[Shifty Geezer]

At the moment Sony seems to be to be in a transition phase, which means not very profitable, but they're setting up for some long term goals centered around this content delivery idea. Of all the companies fighting for this market Sony seems in the best position to me.quote]

Sure . If you want to believe it will last for at least 2 years (this year and 2006 ) as the ps3 will be a huge looser ( loss per system ) and the psp will still be loosing money per system sold.

Yes I do. A huge company setting itself for large long-term goals in a market that doesn't really exist yet (online content) isn't likely to achieve that in a few months. Looking at the investments Sony's making it's obviously losing money now to prepare for the future. They could just as easily stop buying companies and IPs and be more profitable now, but it'd hit 'em hard in a few years when they don't have the neccessary resources to really make something of their Sony World vision.

 

[Evil_Cloud]

As for nintendo things will change. In nov they will have zelda which will sell at least a million units in the usa and most likely 2 in japan.

I'd actually say 2 million in the USA, 1 million in Japan and maybe 1 - 2 million in Europe. Zelda is less popular in Japan than it is in the West (just look at Ocarina of Time for example).

GameCube still has a nice line-up for this year, and I suspect there will be more titles well into 2006. The Legend of Zelda will drive GameCube sales for a few months, then Nintendo can show some new Cube games at E3 or earlier, and carry the platform into Christmas 2006, along with Revolution.

I do hope Nintendo is going to market the hell out of Zelda...

 

[Guden Oden]

What I want to know is how to they plan on staying profitable if the Revolution flops as hard as most people expect it to.

Who are these "most people"?

I'd say "most people" don't have a clue what nintendo's next machine's going to be... Don't make the mistake of confusing internet fanpeople with "most people".

 

[Powderkeg]

Who are these "most people"?

I'd say "most people" don't have a clue what nintendo's next machine's going to be... Don't make the mistake of confusing internet fanpeople with "most people".

80-90 Million PS2 owners
20 Million or so Xbox owners

Only 18 or so million Nintendo Gamecube owners.


Most people don't buy Nintendo consoles. Most people have reasons for not buying Nintendo consoles.

In fact, Nintendo loses about a third of it's console userbase with each new generation, and unless you can show me some really compelling evidence to the contrary, I'm going to say this trend will continue next-gen. That would put the Revolution userbase at about 12 Million total at the ned of next generation, and that's very close to Dreamcast totals.

How many more customers can Nintendo afford to lose before they are no longer making profits in consoles?

 

[Evil_Cloud]

80-90 Million PS2 owners
20 Million or so Xbox owners

Only 18 or so million Nintendo Gamecube owners.


Most people don't buy Nintendo consoles. Most people have reasons for not buying Nintendo consoles.

In fact, Nintendo loses about a third of it's console userbase with each new generation, and unless you can show me some really compelling evidence to the contrary, I'm going to say this trend will continue next-gen. That would put the Revolution userbase at about 12 Million total at the ned of next generation, and that's very close to Dreamcast totals.

How many more customers can Nintendo afford to lose before they are no longer making profits in consoles?

I think the real question is: will Nintendo gain or lose marketshare with Revolution? Will the current 'trend' continue, or will they manage to grow again thanks to innovation?

I do think Nintendo would've far surpassed Xbox sales wise if they had chosen to lose ~$4 billion in order to gain marketshare.

 

[Guden Oden]

unless you can show me some really compelling evidence to the contrary, I'm going to say this trend will continue next-gen.

I'm not going to show you a god damn thing pal. I just want you to explain what people it is you believe think that rev is going to bomb, like you said in a previous post. You're not getting away by attempting to misdirect the discussion.

How many more customers can Nintendo afford to lose before they are no longer making profits in consoles?

What makes you think they aren't making a profit in consoles, or that they won't next gen?

Either you're a very silly person for making a flawed statement like that with no facts backing it up, or you attempted a troll - which is against forum policy I might add, and which is going to make the mods very annoyed with you also.

 

[Powderkeg]

I'm not going to show you a god damn thing pal. I just want you to explain what people it is you believe think that rev is going to bomb, like you said in a previous post. You're not getting away by attempting to misdirect the discussion.

You're not going to show me anything because you have nothing to show. Plain and simple.

If you could offer a shred of evidence that I was wrong, you would be happily shoving it in my face. But since none exists, you'll hide behind the "I'm not going to show you anything." remark.

What makes you think they aren't making a profit in consoles, or that they won't next gen?

Nintendo recently posted their first ever loss.

Would you attribute that to low GBA sales? How about poor DS sales?

What's left?

Either you're a very silly person for making a flawed statement like that with no facts backing it up, or you attempted a troll - which is against forum policy I might add, and which is going to make the mods very annoyed with you also.

Name calling and flaming is against forum policy, but that didn't stop you from writing that, did it?

Last time I checked, voicing my fears for a former industry leader isn't trolling. Neither is presenting the evidence as to why I feel the way I do. Any mature forum member would happily debate with me without having to resort to name calling and cussing if they had reason to feel differently, or some evidence that suggested I was wrong.

Clearly, you are not that mature forum member.

 

[PC-Engine]

Nintendo recently posted their first ever loss.

AFAIK this is not true. They've posted quaterly losses before.

 

[Teasy]

Powderkeg

The fact that nobody can disprove your assumption doesn't make that assumption correct. In fact the reason it can't be disproved is because its a guess and nothing more.

GameCube lost market share compared to N64 because this generation was a three horse race (unlike last gen which was a two horse race). Unless a big fourth console maker comes out with a new system next gen then I can't see Nintendo losing more market share.

 

[Powderkeg]

Powderkeg

The fact that nobody can disprove your assumption doesn't make that assumption correct. In fact the reason it can't be disproved is because its a guess and nothing more.

No, you are wrong.

The assumption is most people believe the Revolution will not reverse Nintendo's sales trend.

The evidence is in sales of Nintendo consoles. Over 90% of console owners did not choose to buy a Nintendo made console this generation. Lacking any specific evidence to the contrary, it can be assumed that the same will be true for next-generation as well.

GameCube lost market share compared to N64 because this generation was a three horse race (unlike last gen which was a two horse race). Unless a big fourth console maker comes out with a new system next gen then I can't see Nintendo losing more market share.

Last gen = Sony, Nintendo, and Sega, unless you are saying the Saturn didn't exist.

Last gen was a 3 horse race, and the one with the least amount of sales no longer is a part of the console hardware market.

And trust me, as long as you have market share, you have the ability to lose it. Sega lost market share until they had to get out of the hardware business entirely, Nintendo is perfectly capable of doing the same. Lose some more 3rd party support, lose a few more exclusives to their competition, and they can easily lose some more customers.

 

[Readykilowatt]

No, you are wrong.

The assumption is most people believe the Revolution will not reverse Nintendo's sales trend.

Who are "most people"?

No, you are wrong. Last gen = Sony, Nintendo, and Sega, unless you are saying the Saturn didn't exist.

Last gen was a 3 horse race, and the one with the least amount of sales no longer is a part of the console hardware market.

And trust me, as long as you have market share, you have the ability to lose it. Sega lost market share until they had to get out of the hardware business entirely, Nintendo is perfectly capable of doing the same. Lose some more 3rd party support, lose a few more exclusives to their competition, and they can easily lose some more customers.

Comparing Nintendo to Sega? That's not a smart thing to do.

 

[Sonic]

I agree that comparing Nintendo to SEGA is the wrong thing to do. While the company and its consoles do paralell SEGA in a few things such as losing marketshare after each generation, that really is about it. Nintendo is still making a profit from its console and as long as that doesn't change for the forseeable future then there really is no reason for Nintendo to leave the console business.

I believe "most people" are those of us who see no compelling reason why the Revolution would change or rever Nintendo's current situation. I do not see the Revolution increasing Nintendo's marketshare in the next generation without some drastic changes at Nintendo. The main problem is they are just not agressive enough when it comes to their consoles and do not cater to 3rd parties like MS and Sony do. That's not a problem as long as Nintendo games are still selling well.