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Who's to Blame for Nintendo's Loss?

Digging through Nintendo's first quarter profit report released last Friday reveals few software surprises. Super Mario Galaxy 2 was, surprise surprise, Nindendo's biggest new release on the Wii, and its DS contemporary was Pokemon Heartgold/Soulsilver. So far, so Nintendo; extremely well crafted games from established franchises leaving much of the third-party competition in the dust.

More surprising was the revelation that from January to June 2010 Nintendo made its first loss – of $288.4 million to be exact - since the release of the Wii in November 2006.

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xYLeinen3184d ago

Hard to believe. Good to hear that Nintendo can struggle as well. Well, not struggle but have a bad quarter.

N4g_null3183d ago

It's called r&d spending. Some times it envolves prolong up the factories that make your new gadget like you know 3G screen for handhelds.

On top of this the next console r&d is in full swing I'm will to bet. Just a lot of talk right now.

Plus they actualy did make a profit yet once you add r&d and increased production you see the negative. Yet once the 3rd is out every one is going to buy it even if it has antenna problems lol. Plus I'm expecting the old schoolers to love the new games coming to the wii. Oh yeah expect to see Mario kart in the sales charts again this x mas.

Game-ur3184d ago

Games are make or break for them, Sony can lean on multiple divisions and for Microsoft the 360 is just a hobby.

shikamaroooo3184d ago

whats sonys most profitable divions is it there movie division?

RememberThe3573184d ago

Sometimes their movie division pulls in shit loads other years they are investing in new product and take a loss. Funny thing is, I think they financial division has been the most consistent. And for a long time the game division was one of their pillars of profitability.

WhittO3184d ago (Edited 3184d ago )

I think Sony Bravia brings in quite alot of money, i know loads of people now who realise the quality difference between Sony and LG in TV's and prefer to spend more on a TV that will last years, than loads less on a TV that will last 10 months..

I can't see Sony Walkman bringing in much money in that market.

As for their movie division, they do have a few films which make loads of money (like Spiderman), but I wouldn't say they are rolling in it lol, it's funny their top grossing films in the US are Spider man...then Men in Black and Ghostbusters haha.
(FOX must be absolutely rolling in it with Avatar!! Never mind the 2.7 Billion in box office gross, the DVD sales and Bluray sales are through the roof!!

moparful993184d ago

Sony's movie division makes alot of money. You have to factor in the fact that they make royalties off of their dvd sales and they are the proprietary owners of the blu ray technology so they make a pretty penny from all blu ray sales... Then you also factor in the money they make off of buys/rentals on the psn movie store.. Sony leans on their movie division heavily...

WhittO3184d ago (Edited 3184d ago )

Ye I'm not saying it doesn't earn them money, it brings in billions probably.

But they haven't exactly had a string of hits recently (as in the past few years..), but ye, most studios make their money off dvd sales anyway, when advertising etc is accounted for.

Also, I thought it was Sony sharing with Pioneer and Philips? Forgot they would make royalties of bluray too..

moparful993184d ago

Sony is one of those companies that can garner large profits all year long through strong theatre sales, dvd, digital, as well as television. They don't really need to have an "Avatar" to justify their business.... "SPE recorded total sales of $7.6 billion for fiscal year ended March 31, 2010" Just a fun fact. I pulled this straight from their website sony pictures entertainment. Thats alot of cheddar. As far as the blu-ray tech they co-developed it with phillips but sony has the largest stake in the technology.

+ Show (2) more repliesLast reply 3184d ago
Nathaniel_Drake3184d ago

They do own some of the Seattle Mariners or all, don't know, and even that baseball team is doing bad

RememberThe3573184d ago

They f*ckin suck! M's management trades away every single great player they have except Ichiro. They haven't been able to run a solid club since the magical 116 season.

TruthbeTold3184d ago

they learn from their waiting too long before releasing the DS successor, and get on the ball with the next console. The Wii just may be in this same position within a year. Old hardware that is adequate can become inadequate in a heartbeat when it comes to people's willingness to spend money. You've got to constantly wow people with that old hardware, and the DS just hadn't been doing it for a while.

Seferoth753184d ago (Edited 3184d ago )

Yeah you'd have a great point there if it wasnt consistently the top selling hardware world wide.

Small piece of advice, stop making predictions based off of your own personal opinion and ignoring the facts of the situation. You clearly do not speak or represent any major portion of the world with your opinion

BTW this is because they are ramping up production for their new 3DS

TruthbeTold3184d ago

I'm speaking specifically to the sales decline that has caused their decline in profit this quarter. It doesn't matter if it's outselling everything worldwide if people buying games has declined so much that it doesn't matter. So take a small piece of MY advice. Stop being so defensive and fanboyish that you can't see anything but the brown on your face from kissing ass. What a retard...

N4g_null3183d ago

Unfortunatly truthbetold he is right. Except for the name calling nintendo has propably paid for pr stuns commercials are behind shot and new production lines are going to ramp up. Launching a system is expensive.

Then we have the r&d of the next console. And upgrading all the tools they are currently using and possibly their work station too.

Mahr3184d ago (Edited 3184d ago )

You may be right, Troof, but I think you and a few other people going on about sales are underestimating just how badly Nintendo got zapped by the exchange rate this quarter.

From their report: Non-operating expenses (foreign exchange losses)- 70,567 million yen.

http://i29.tinypic.com/i2k6...

That works out to about 816 million USD lost due entirely to the yen-euro-dollar conversion rates. If those rates had remained constant, not only would this quarter have been profitable, it would have been up from the same quarter last year (527 mill vs 480 mill if my math and memory are correct).

Edit: Just noticed #13 does a better job of explaining the same thing a little bit below.

ebgeer3184d ago

Without core gamers which developers have tried to market to with some pretty incredible games, gamers have left these guys out to dry. And now that the casual audience has bought the hardware and the 2 peices of software, theres nobody else buying...core gamers buy software...and ALOT of it. Once they give up on a system..then there really is no hope for developers or publishers(3rd party) So I blame gamers first and formost, then I blame Nintendo, then 3rd party developers--because many of them gave up on the Wii before the Wii even came out.

Seferoth753184d ago (Edited 3184d ago )

You are completely clueless and most likely 12. Wii has an attach rate right up there with 360 and unlike Sony it isnt an inflated attach rate with all the free bundled games Sony has to include to spur sales.

I am happy with the Wii and it is clear to anyone but a fanboy or moron that they are in no trouble at all. I dont know where you got most of your information but it is completely wrong and easy to correct.

I guess you think it makes Nintendo look bad for you to spout a bunch of nonsense? NO it only shows everyone else how little you know and how your opinion isnt in any way valid

BTW would love to hear about all those AAA games that bombed on Wii? Seriously name them off and I will send you a list of HD games that sold less and are not considered bombs. They only people calling them bombs are clueless people like you that read some random opinion piece from some clueless moron and take it as fact

evilmonkey5013184d ago (Edited 3184d ago )

"You are completely clueless and most likely 12. Wii has an attach rate right up there with 360 and unlike Sony it isnt an inflated attach rate with all the free bundled games Sony has to include to spur sales."

http://techtickerblog.com/w...

http://www.halos-finest.com...

Knushwood Butt3184d ago

Nintendo's software and hardware sales are down. Particularly for the DS.

That is the main cause of the problem.

Trying to blame it on exchange rates is a joke. Sony have to put up with the same exchange rates and they did much better in the last quarter.

I'm not sure why your post focuses on the Wii as that is less of an issue here than the DS. Still, if you want a Wii game that bombed, look no further than Red Steel 2. Yet more proof that core gamers have abandoned the system.

You being 'happy with the Wii' doesn't really count for much. Maybe you should think about changing your avatar. You sound rather butthurt.

spooky2053184d ago

seferoth75. But last time i checked the wii has always come bundled up with a game or 2. Couple that with wiiplay (a minigame collection with a wiimote that people often buy instead of a standalone wiimote). So wouldnt that also inflate the attach rate much like you are judging Sony for doing? The important factor here is games. People are not buying them for the wii. For a console that has double the install base of the competition the attach rate is no better. Thats a big red flag something is seriously wrong.

iceman063184d ago

Core gamers, as you called them, left the Wii for a reason...core games were far and few between. I love Nintendo like the next person. But, I shouldn't have to wait 6 months between releases of core experiences. This is the fault of Nintendo first simply because they pandered to the "casual" gamer (who is proven to only buy 2-3 games maybe in a year). They basically abandoned their hardcore Nintendo fans (up until E3 this year). They have basically rested on the laurels of their crazy early gains. Now, they REALLY have to develop a strategy for future gains. The 3DS looks like it might be a key part of that.

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