Nintendo's First Half 2011 Financial Reports: Loss Posted And Anticipated

This post is courtesy of NeoGAF's Parmenides. All raw data has been sourced directy from his post. Any analysis, however, will be mine:

Consolidated Results For the Six Months Ended September 2011 (Million Yen)

Net Sales---> 215,738
Operating loss---> 57,346
Net loss---> 70,273
1 US$ = 76.65 yen (Sp 30, 2011)
1 Euro = 104.11 yen (Sp 30, 2011)

The operating loss was 57.3 billion yen.Due to re-evaluation of assets in foreign currencies exchange losses totaling 52.4 billion yen occurred.As a result de ordinary loss was 107.8 billion yen and the net loss was 70.2 billion yenNintendo

Total Hardware Sales:

Nintendo DS:149 million units LTD (1.14 million in the last quarter)
Nintendo Wii:89.36 million units LTD (1.79 million in the last quarter)
Nintendo 3DS:6.68 million units LTD (2.36 million in the last quarter)

Total Software Sales:
Nintendo DS:868.48 million units LTD (16.86 million in the last quarter)
Nintendo Wii:752.54 million units LTD (23.01 million in the last quarter)
Nintendo 3DS:17.66 million units LTD (3.6 million units in the last quarter)

Forecast for Hardware:
Nintendo DS:6 million for FY2011/12 (down from 11 million originaly forecast)
Nintendo Wii:12 million for FY 2011/12 (down from 13 million originally forecast)
Nintendo 3DS:16 million for FY 2011/12

With the Holidays upon us and a few big hitters landing, I'm sure Nintendo will bounce back. They always do around this time. :P

the peak of this gen for Nintendo was around 2008-2010, I knew after that the interest in their biggest money maker (The Wii) would die down.

Meh nothing special...Nintendo is still super super super strong. All the Nintendo doom reres are screaming death while ignoring that Sony has had quarters upon quarters of money losts.ShadowDeathX

Sony can sell one of their subsidiary and still be fine if they were to get that bad. Stringer has been in a tight situation for months and there are rumors of Sony Pictures being sold, which would actually bring in quite an amount of revenue too.

Unlike Sony however, Nintendo is mostly depended on their video gaming products, they HAVE to do good, and the 3DS launch simply wasn't friendly. Getting better but it's not skyrocketting either. The Wii U is quite the wait as well and it makes buying a Wii right now sorta moot, especially with them pushing non-BC Wii's lately.

Nintendo is in trouble, but lets also be realistic. They will most probably bounce back, but it's just not a good situation for them, and neither is it for Sony.:?

the peak of this gen for Nintendo was around 2008-2010, I knew after that the interest in their biggest money maker (The Wii) would die down.

rasengan2552

You say that as the 3DS sells 2.2 million units in 48 days worldwide? Yea, right.

This doesn't mean the death of Nintendo but this also isn't anything to shrug at.

It would take some consecutive years before Nintendo stops making hardware but that seems highly unlikely.

[QUOTE="ShadowDeathX"]Meh nothing special...Nintendo is still super super super strong. All the Nintendo doom reres are screaming death while ignoring that Sony has had quarters upon quarters of money losts.sanim02

Sony can sell one of their subsidiary and still be fine if they were to get that bad. Stringer has been in a tight situation for months and there are rumors of Sony Pictures being sold, which would actually bring in quite an amount of revenue too.

Unlike Sony however, Nintendo is mostly depended on their video gaming products, they HAVE to do good, and the 3DS launch simply wasn't friendly. Getting better but it's not skyrocketting either. The Wii U is quite the wait as well and it makes buying a Wii right now sorta moot, especially with them pushing non-BC Wii's lately.

Nintendo is in trouble, but lets also be realistic. They will most probably bounce back, but it's just not a good situation for them, and neither is it for Sony.:?

It isn't nearly as grim as you say

The 3DS sold 2.2 million units in the 48 days following the price drop. It hit 6.68 million before October 1st. That's skyrocketing if you ask me. Selling 200k-300k with little system selling software each month in Japan is great too.

They have the best line up coming out on the 3DS over the next year, and I'm sure the Wii U will have a bumpy ride at first, but they'll bounce back like you said.

Everyone will be remember how silly it was to talk about the "3DS being doomed" once the end of 2012 sales says 3DS: 30 Million +, PS Vita: 10 million +

We all know its gonna happen, but it is fun to joke around in this time where there is the highest (like 5%) chance that Nintendo may not be handheld king, even if it is still the most likely scenario.

This doesn't mean the death of Nintendo but this also isn't anything to shrug at.

It would take some consecutive years before Nintendo stops making hardware but that seems highly unlikely.

commonfate

A lot of their losses are probably the price cut, Wii U R&D, and the free ambassador games.

They likely won't report another one like this next time, maybe a mediocre one after Wii U launches.

better then i thought they will sell more this christmas and next year wit the wiiu and junk hopefully nintendo will be alright

better then i thought they will sell more this christmas and next year wit the wiiu and junk hopefully nintendo will be alright

Mario1331

BETTER?!?!

This was worse than their own analysts predictions!

[QUOTE="Mario1331"]

better then i thought they will sell more this christmas and next year wit the wiiu and junk hopefully nintendo will be alright

commonfate

BETTER?!?!

This was worse than their own analysts predictions!

yea i thought it was much worse then this by how many people made it sound, i thought they were going down or in the red or something, majority is from yen exchange

[QUOTE="commonfate"]

[QUOTE="Mario1331"]

better then i thought they will sell more this christmas and next year wit the wiiu and junk hopefully nintendo will be alright

Mario1331

BETTER?!?!

This was worse than their own analysts predictions!

yea i thought it was much worse then this by how many people made it sound, i thought they were going down or in the red or something, majority is from yen exchange

I would trust industry experts over forum goers but yeah people were acting like Nintendo was going to stop making games next year. Nintendo did say that if they kept losing out on sales for the next few years they would leave the hardware business. They don't have other sources of revenue like Microsoft and Sony do.

Fortunately, the chances are very slim of Nintendo dropping out of the race at this point but if 3DS sales don't pick up and the Wii U launch fails then Nintendo will be in a bit of a trouble spot.

Late, char, Slashkice already posted it before. Also for both threads, Nintendo have issued a corrective note which changes hardware numbers, but I don't know if that's already accounted for in your OP.

You say that as the 3DS sells 2.2 million units in 48 days worldwide? Yea, right.

bonesawisready5

A lot of their losses are probably the price cut, Wii U R&D, and the free ambassador games.

They likely won't report another one like this next time, maybe a mediocre one after Wii U launches.

bonesawisready5

[QUOTE="Mario1331"]

[QUOTE="commonfate"]

BETTER?!?!

This was worse than their own analysts predictions!

commonfate

yea i thought it was much worse then this by how many people made it sound, i thought they were going down or in the red or something, majority is from yen exchange

I would trust industry experts over forum goers but yeah people were acting like Nintendo was going to stop making games next year. Nintendo did say that if they kept losing out on sales for the next few years they would leave the hardware business. They don't have other sources of revenue like Microsoft and Sony do.

Fortunately, the chances are very slim of Nintendo dropping out of the race at this point but if 3DS sales don't pick up and the Wii U launch fails then Nintendo will be in a bit of a trouble spot.

yea lets just hope for the best the 3ds is picking up and this doesnt reflect when the 3ds started to pick up steam so im not that concerned yet its if the wiiu and 3ds bomb then yea

I'd say selling6.68 million units without any of it's portable heavy hitters (Pokemon, Mariokart, Brain training, Mario, Animal crossing) is pretty good.

Late, char, Slashkice already posted it before. Also for both threads, Nintendo have issued a corrective note which changes hardware numbers, but I don't know if that's already accounted for in your OP.

shinrabanshou

[QUOTE="rasengan2552"]

the peak of this gen for Nintendo was around 2008-2010, I knew after that the interest in their biggest money maker (The Wii) would die down.

bonesawisready5

You say that as the 3DS sells 2.2 million units in 48 days worldwide? Yea, right.

Actually that itself is a problem 3DS is selling at a loss and if you look at the charts especially in Japan the system is selling like hotcakes but its not moving any software which means Nintendo is losing lot of money on every 3DS sold and not making any money back from software.

Nintendo still has billions more in their war chest. Again, not a big hit. This just means they spent more then they got back in return. War Chest still intact.ShadowDeathX

Well, by definition, losing money means the War Chest is not intact... but I agree with your sentiment. Nintendo was carrying ~ 10 billion in cash reserves last I knew, so this news is something they can easily move beyond, as long as they don't make panicky moves. Well, any more panicky moves, anyhow...

[QUOTE="bonesawisready5"]

[QUOTE="rasengan2552"]

the peak of this gen for Nintendo was around 2008-2010, I knew after that the interest in their biggest money maker (The Wii) would die down.

Kashiwaba

You say that as the 3DS sells 2.2 million units in 48 days worldwide? Yea, right.

Actually that itself is a problem 3DS is selling at a loss and if you look at the charts especially in Japan the system is selling like hotcakes but its not moving any software which means Nintendo is losing lot of money on every 3DS sold and not making any money back from software.

Prove to me that it sells at a loss? It was rumored to cost $100-$150 to make one before the price drop, why would that change? Fact is, Nintendo has never sold a console at a loss really, even when they dropped the GameCube to $99 less than 2 years after release.

I'd like to add that Nintendo stopped production on the GameCube for six months in 2003, it looked grim.

What happened after that? The DS, and the Wii. And we got some awesome GameCube games. Honestly, a cornered Nintendo is a Nintendo that usually delivers shortly there after. I'm sure Nintendo will be fine.

Late, char, Slashkice already posted it before. Also for both threads, Nintendo have issued a corrective note which changes hardware numbers, but I don't know if that's already accounted for in your OP.

[QUOTE="bonesawisready5"]

You say that as the 3DS sells 2.2 million units in 48 days worldwide? Yea, right.

shinrabanshou

I don't get it.

Nintendo says it sold 4.3 million 3DS systems between launch, and late July.

Their sales data goes to the end of September, and is 6.68 million units.

So, unless I'm mistaken, that's a 2.28 million unit increase from August 1st to September 30th. In two months the 3DS sells 50% of what it sold in 4-5 months.

Are the numbers inaccurate? Nintendo is saying Sold not Shipped right? I don't get what I'm missing, please explain it to me because everything I'm reading says "sold", I may be over looking something but if its sold, and there's a 2.28 million unit increase in such a short time frame, I'd say that's super healthy

And that doesn't include October, which likely will net another 250k-300k in NA/EU each, and possibly 300k in Japan. They seem to be trending upward to moving 800k-1 million systems a month worldwide, and will probably break 1.2-1.5 million during November or December each. If they updated this dated for October after the month it would likely be at 7.5 million units already, worldwide.

And I know software isn't sell super well the last few weeks in Japan, but pretty much every 3DS title has seen a healthy sales increase post price drop, Ghost Recon jumped from 60k to 120k, DOA jumped from 100k to 150k, and SSFIV jumped from 450k to 540k. And Ridge Racer went from like 100k-ish to like 200k plus. It's just a slow burn in small numbers for all of them worldwide. I certainly wouldn't say software sales are bad, as most of the titles cost around a meager $1 million to make and they're mostly all netting $10 million or more in sales.

I would trust industry experts over forum goers but yeah people were acting like Nintendo was going to stop making games next year. Nintendo did say that if they kept losing out on sales for the next few years they would leave the hardware business. They don't have other sources of revenue like Microsoft and Sony do.

Fortunately, the chances are very slim of Nintendo dropping out of the race at this point but if 3DS sales don't pick up and the Wii U launch fails then Nintendo will be in a bit of a trouble spot.commonfate

I agree. With what's currently going on with Nintendo, the Wii U's launch better be spectacular & hope it's a success, or they're going to be in even more trouble than they are now.

[QUOTE="commonfate"]I would trust industry experts over forum goers but yeah people were acting like Nintendo was going to stop making games next year. Nintendo did say that if they kept losing out on sales for the next few years they would leave the hardware business. They don't have other sources of revenue like Microsoft and Sony do.

Fortunately, the chances are very slim of Nintendo dropping out of the race at this point but if 3DS sales don't pick up and the Wii U launch fails then Nintendo will be in a bit of a trouble spot.garland51

I agree. With what's currently going on with Nintendo, the Wii U's launch better be spectacular & hope it's a success, or they're going to be in even more trouble than they are now.

You serously think they can stop production on the GameCube for six months, and it sells 22 million units over 6 years, yet the 3DS is outselling the DS in the same timeframe, is the best selling console right now post-price drop, has an amazing line up of games, and you doubt their recovery?

Nintendo still sells the 3DS at a profit, the idea that they aren't is a rumor that has never been proven, and it would be totally out of character to sell it at a loss now as they never have. Also, even if the Wii U sells a measly 25 million units like the Cube Nintendo will not drop out and will continue to make great first party games as they will sell the Wii U for a healthy profit and maintain a good business model

Its a rough patch. Nintendo has been through worse, and the road looks bright ahead

Nintendo is saying Sold not Shipped right?

bonesawisready5

Also, Iwata has confirmed the 3DS now sells for a loss to Nintendo.

[QUOTE="bonesawisready5"]

Nintendo is saying Sold not Shipped right?

shinrabanshou

Also, Iwata has confirmed the 3DS now sells for a loss to Nintendo.

Link? It would seem odd when they should be afraid of investors selling stock to tell them they lose money per unit directly. I can't find anything on this, but if you've got his statement at a link in English (or a well translated page) that isn't a rumor, then please let me know

so 3DS sold 7Million in 6months?

the ds has been on the market for 7 years and sold 149Million.... if the 3ds sells at this rate...in 7 years it will have sold 98Million...thats still more than the psp

also i was sad to see that wii hasnt hit the 90million mark yet :(