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View Full Version : Nintendo's quarterly profit sinks nearly 80 percent


DevilHacker
08-01-2005, 12:53 AM
According to Reuters' Japanese service, Nintendo reported a 78.5 percent decline in operating profit for the quarter ending June 30, 2005. Its 13.72 billion yen ($123 million) in operating income was off 3.75 billion yen ($33.4 million) from the same period in 2004. While disappointing, the figures did slow the precipitous decline Nintendo reported in the January-March quarter, when its profit dropped 8.5 billion yen ($75.8 million). Overall, quarterly sales were off 14 percent, weighing in at 70.7 billion yen ($630.6 million).

The slump can be attributed to two main factors. First was a dearth of games released during the quarter. While more than a dozen games shipped for the Game Boy Advance in the US, the North American continent saw fewer than 10 major GameCube releases, most of which were third-party ones available on multiple platforms.

Indeed, the second major reason cited by Reuters for Nintendo's thinning profits involved sagging sales of the Game Boy Advance SP and the GameCube. The venerable portable only shipped 980,000 units during the quarter, down from 2.3 million the previous year. Sales of the console dropped an estimated 60 percent during the quarter, compared to the same period during 2004.

Link to Complete Article (http://www.gamespot.com/news/2005/07/28/news_6129939.html)

Recursive
08-01-2005, 08:25 AM
Is that the news, or is this the news?
It also can't be understated that Nintendo saw a profit in its last quarter. By comparison, Sony Computer Entertainment today reported a quarterly loss of 5.9 billion yen ($52.6 million). Last week, Microsoft's Home and Entertainment division, which makes the Xbox, said it lost $179 million during its last quarter.



I'm getting somewhat tired of the Nintendo is dooomed!!111!!1!! posts

laureato di arte
08-01-2005, 10:24 AM
Is that the news, or is this the news?


I'm getting somewhat tired of the Nintendo is dooomed!!111!!1!! posts

good point

ThePumpkinKing
08-01-2005, 01:33 PM
Is that the news, or is this the news?


I'm getting somewhat tired of the Nintendo is dooomed!!111!!1!! posts

This isn't a Nintendo if Doommed post. It's just reporting what Rueters said about their profit.

Bonedaddy
08-01-2005, 03:48 PM
This isn't a Nintendo if Doommed post. It's just reporting what Rueters said about their profit.

If you had just read the headline, what would you think about how the company's doing?

Now, how many people just read the headline?

What if the headline had been "Once again, Nintendo turns quarterly profit, as Sony and Microsoft continue accruing debt"?

noisewar
08-01-2005, 04:37 PM
I concur. They actually made a profit. Headline bespeaks an inexistent doom.

While disappointing, the figures did slow the precipitous decline Nintendo reported in the January-March quarter, when its profit dropped 8.5 billion yen ($75.8 million).

That line spins what is a decrease in quarterly losses as a spinshattering blow.

PhilOsirus
08-02-2005, 02:25 AM
While Sony and Microsoft did not make a profit, Sony's lack of profits was far from being due to its game division. In fact Sony's game division is still extremely strong. Sony didn't make a profit because of problems they face in other sectors, such as TVs and audio devices. As for Microsoft, it's game division isn't strong but the lack of profits is also due to other sectors of the company as well.

Nintendo only makes games, hence an 80% drop with extremely low Gamecube sales is very worrysome as far as their console development is concerned.

This could change in the future if Sony falls flat with an overpriced console.

heavyness
08-02-2005, 04:23 AM
then again, EVERY game company slumps before their next system comes out. this is the low times, when there are less games coming out and people are waiting for the new system.

common sense.

mummey
08-02-2005, 07:43 AM
then again, EVERY game company slumps before their next system comes out. this is the low times, when there are less games coming out and people are waiting for the new system.

common sense.

Umm... How long has the Gamecube been out? Do we even have a clue when the revolution will be out yet?

Recursive
08-02-2005, 08:46 AM
While Sony and Microsoft did not make a profit, Sony's lack of profits was far from being due to its game division. In fact Sony's game division is still extremely strong. Sony didn't make a profit because of problems they face in other sectors, such as TVs and audio devices. As for Microsoft, it's game division isn't strong but the lack of profits is also due to other sectors of the company as well.

Nintendo only makes games, hence an 80% drop with extremely low Gamecube sales is very worrysome as far as their console development is concerned.

This could change in the future if Sony falls flat with an overpriced console.
So you are saying that Sony Computer Entertainment makes tv's and audio devices?

If you do some digging I think you will find that Sony Computer Entertainment is the gaming division in sony.

Recursive
08-02-2005, 08:47 AM
then again, EVERY game company slumps before their next system comes out. this is the low times, when there are less games coming out and people are waiting for the new system.

common sense.
That may be, but that isnt the news here.

Every gaming company slumps in this quarter.

UrbanFuturistic
08-02-2005, 04:20 PM
So you are saying that Sony Computer Entertainment makes tv's and audio devices?

If you do some digging I think you will find that Sony Computer Entertainment is the gaming division in sony.

Quoted for agreement: The article states that the specific devisions responsible for the respective consoles, not the overall companies made a loss; Sony Computer Entertainment and Microsoft's Home and Entertainment division reported losses, not Sony and Microsoft as a whole.

Yeesh, so much time would be saved in these forums if people would read article's properly before replying.

regards, Paul

Apoclypse
08-02-2005, 10:30 PM
And the big N's fanboys come out swinging. BTW, what new handheld is nintendo taking out that explains its sagging sales for the GBA?

PhilOsirus
08-02-2005, 11:05 PM
then again, EVERY game company slumps before their next system comes out. this is the low times, when there are less games coming out and people are waiting for the new system.

common sense.

Actually, more games are coming out than ever in the past few years, and sales are at all time highs. There is no slow down at the moment.

PhilOsirus
08-02-2005, 11:07 PM
So you are saying that Sony Computer Entertainment makes tv's and audio devices?

If you do some digging I think you will find that Sony Computer Entertainment is the gaming division in sony.

SCE does not sell stocks, Sony Corp. does. Hence when the company says they are not making a profit it means all of Sony, not the gaming division, because that one is making profits (the article said there was a reduced demand in PS consoles, but the division is not loosing money).

Hazdaz
08-03-2005, 03:47 AM
You guys have to realize that even though the XB division of MS, and the PS division of SONY lost money, they are only a small chunk of a much, much larger corporation... the same can not really be said for Nintendo.

Nintendo is not diversified in a ton of other industries, so weak sales of games for GC of GBA (or whatever other 50 portable systems they have) is a lot worse if they don't have income from other divisions to bolster the rest of the company. That can, and will weaken a company ALOT - even to the point of becoming a take-over target if their stock price becomes low enough.

Their stock price now is only about 1/2 of what it was back in 1999-2002. No one wants the Big N to go away - and no one is saying that they are going away - but stuff like this gains momentum to the point where it becomes harder and harder for a company to raise capitol to invest in new products, which then makes it worse, cuz it has no new things to sell, which makes their bottomline even worse, which makes their stock price even worse, which makes raising capitol harder - and round and round it does. Many times it just snowballs and gets worse and worse.

http://chart.finance.yahoo.com/c/my/n/ntdoy.pk
Compared to Sony:
http://chart.finance.yahoo.com/c/my/s/sne
And MS:
http://chart.finance.yahoo.com/c/my/m/msft
(^ this the kind of chart you DREAM of... all those triangles are splits in the shares :eek: )

OK, sorry for all the boring charts and stock talk... :blush:

PhilOsirus
08-03-2005, 03:57 AM
Well you got different timelines, but regardless WHERE did you people hear that the game division at Sony is losing money? They saw a reduced demand, but they are still making lots of money as far as I know. But like I said before Sony and MS don't only have gaming divisions, so an 80% drop for Nintendo doesn't meant the same than for Sony or MS as far as gaming-related production goes.

Hazdaz
08-03-2005, 04:00 AM
Well you got different timelines
I know, I tried maxing out the charts for as many years as I could... :sad:

Recursive
08-03-2005, 07:48 AM
Well you got different timelines, but regardless WHERE did you people hear that the game division at Sony is losing money? They saw a reduced demand, but they are still making lots of money as far as I know. But like I said before Sony and MS don't only have gaming divisions, so an 80% drop for Nintendo doesn't meant the same than for Sony or MS as far as gaming-related production goes.

Just please read the article.....

or perhaps I should copy and paste the relevant section again:

Sony Computer Entertainment today reported a quarterly loss of 5.9 billion yen ($52.6 million). Last week, Microsoft's Home and Entertainment division, which makes the Xbox, said it lost $179 million during its last quarter.

noisewar
08-03-2005, 07:56 PM
Well you got different timelines, but regardless WHERE did you people hear that the game division at Sony is losing money? They saw a reduced demand, but they are still making lots of money as far as I know. But like I said before Sony and MS don't only have gaming divisions, so an 80% drop for Nintendo doesn't meant the same than for Sony or MS as far as gaming-related production goes.

Someone has to do it (http://www.gamespot.com/news/2005/07/28/news_6129967.html)

ahem.

A 65 percent spike in Q2 game sales is wiped out by high PS3 R&D costs; SCE's shortfall is lion's share of the overall $65 million loss. As predicted last week by analysts, today Sony reported its first consecutive quarterly loss for the first time in four years.

For the quarter ending June 30, 2005, the planet's number two electronics manufacturer lost 7.3 billion yen ($65 million). The majority of these losses stemmed from Sony Computer Entertainment, the company's game division. "An operating loss of 5.9 billion ($54 million) was recorded, an increase of 3.0 billion compared with the same quarter of the previous fiscal year," said the company in its report.

Not playing favorites, just stickin' to the facts.

PhilOsirus
08-04-2005, 01:47 AM
We'll I'll be damned!;)

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