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Nintendo losing profit and how will they fare in the future?

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#1 Brian6330

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Posted 26 January 2012 - 09:04 AM

Hey guys, since I'm at school I'll keep this quick.


Nintendo has lost profit this financial year.

Kotaku
Reuters (source)


Sorry for both using a proxym, but only way to surf at school.


So, how do you think this will impact Nintendo in the future?
Will they still be as strong as before in the Gaming Industry, or will they need to change their direction of gaming?


Sound off in the thread!



(will edit when at home)

#2 Terrabyte20xx

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Posted 26 January 2012 - 09:28 AM

Well, when it comes to business, profit is usually compared to how they did the year before, so loss is the difference between this year and last year(This is how companies tend to make themselves look better even though they're in trouble.). Considering the fact that not a lot of software came out, I'm not too surprised.

As for Nintendo Themselves, they'll be fine. This next year is the Dawn of the Wii U, and with that, the dawn of a new generation. The 3DS will pick up more speed as more games get released, and the Wii U will come out around November with (Hopefully) great launch titles.

Edited by Terrabyte20xx, 26 January 2012 - 09:28 AM.

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#3 Bill Cipher

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Posted 26 January 2012 - 09:31 AM

Hey guys, since I'm at school I'll keep this quick.


Nintendo has lost profit this financial year.

Kotaku
Reuters (source)


Sorry for both using a proxym, but only way to surf at school.


So, how do you think this will impact Nintendo in the future?
Will they still be as strong as before in the Gaming Industry, or will they need to change their direction of gaming?


Sound off in the thread!



(will edit when at home)


Losing profit=/= loss overall for that year. Losing profit means I go from earning $100 a year to earning $50 when business runs for $25. I've lost profit, but I haven't lost any actual money.

Plus, Nintendo has LOADS of money in storage from the Wii and 3DS. This will be like a bee sting, not a bullet like Kotaku says.

Edited by Domini N Unova, 26 January 2012 - 09:38 AM.

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#4 Deadly Virus

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Posted 26 January 2012 - 10:06 AM

I don't see it being a major impact. Lately it seems everyone is throwing around these statistics and claiming Nintendo is going third party every single time something remotely bad happens. I think everyone is just finding it a shock that they aren't absolutely made of money anymore like they were at the height of the Wii/DS. I mean really, they survived the N64 and the Gamecube, and people are saying that because the 3DS slips up a bit they're suddenly going to keel over and die?

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#5 kris1206

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Posted 26 January 2012 - 10:22 AM

Don't forget when making a new console they'll spend loads on research, which they did with the Wii and the DS. If Nintendo became just a software company then they would end up making really bad games (just look at Sega and Sonic (although it is getting better))
In my opinion Nintendo will earn so much off the WiiU that they'll own some brilliant game developers, Rare, and Valve come to mind. To increase the amount of games sold then they'll have to make sure that the U games will not top over £40.
I had more to say but my tea is ready
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#6 Terrabyte20xx

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Posted 26 January 2012 - 10:31 AM

Don't forget when making a new console they'll spend loads on research, which they did with the Wii and the DS. If Nintendo became just a software company then they would end up making really bad games (just look at Sega and Sonic (although it is getting better))
In my opinion Nintendo will earn so much off the WiiU that they'll own some brilliant game developers, Rare, and Valve come to mind. To increase the amount of games sold then they'll have to make sure that the U games will not top over £40.
I had more to say but my tea is ready

Did you Mean Retro? Rare is owned by Microsoft, and went Kinect Krazy!(Sorry for the Pun)

Edited by Terrabyte20xx, 26 January 2012 - 10:32 AM.

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#7 kris1206

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Posted 26 January 2012 - 10:36 AM

Did you Mean Retro? Rare is owned by Microsoft, and went Kinect Krazy!(Sorry for the Pun)

No I meant buy rare back :)
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#8 Deadly Virus

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Posted 26 January 2012 - 11:10 AM

No I meant buy rare back :)


Not worth it at this point, Rare is a completely different company to what it was 10 years ago. What they SHOULD do is buy the rights to franchises like Banjo, Conker, Killer Instinct, etc. and make some awesome Wii U/3DS exclusive games with them. If Wii U had a new Conker game filled to the brim with swears and lude references.. I don't think anyone would question how hardcore the console is. ;)

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#9 HaoSenVastForest

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Posted 26 January 2012 - 12:00 PM

Well this is an interesting subject because I think that this could go either way. They do have some times where they have problems like this where they arent making the money that they used to. But I dont worry because did you know that Nintendo is making money off of other things than video games? So really they do have a back up and they are still making cards like they used to but this is only to soften up the blow and wont save them. I do think that this is just a hard time for Nintendo and I think that they should be just fine in little to no time!

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#10 The Video Gamer

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Posted 26 January 2012 - 02:13 PM

Yeah I think they'll be fine in the future it's just that it was the fading off year of DS and Wii and the slow starting of 3DS. But of course towards the end of the year the 3DS started doing great and is still going strong right now and I think Wii U will start of strong from the begin likely launching in the holiday season and having a strong launch lineup. In fact I think they'll do better than fine in the future I see them getting really strong momentum.

#11 Brian6330

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Posted 26 January 2012 - 02:54 PM

Don't forget though, they are now earning less on the 3DS since the price-drop and nobody is exactly sure how big of a success the Wii U will be...


I'm just trying to look at this from a critical point-of-view (I am a Nintendo fan as most of you here know), it's just nobody knows how this year will be for 'em.

We also can't forget though, how much money they might have on the side and how much up-keep whole Nintendo actually needs.

#12 Terrabyte20xx

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Posted 26 January 2012 - 03:12 PM

But we must not forget that Nintendo Makes a profit on EVERYTHING. Nintendo is the only company in the gaming industry that doesn't sell at a loss. So even though the price cut was pretty big, it just lowered the Profit income, not making the surplus loss higher.
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#13 Bill Cipher

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Posted 26 January 2012 - 03:40 PM

But we must not forget that Nintendo Makes a profit on EVERYTHING. Nintendo is the only company in the gaming industry that doesn't sell at a loss. So even though the price cut was pretty big, it just lowered the Profit income, not making the surplus loss higher.


Correction: used to make a profit on everything. If memory serves correct, they are selling the 3DS to stores for like $101. 3DS itself costs, in raw parts, roughly $103-$110. So they are losing money per system, but not overall. Games retail for like $10 more then budget and price of memory, so they make that money back in spades.

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#14 Nintendoes

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Posted 26 January 2012 - 04:36 PM

Nintendo has WAY more money than Sony's gaming division. I would worry about Sony if I were you.

#15 Lain

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Posted 28 January 2012 - 01:54 AM

I like how no one mentioned Pokemon or Super Smash Bros., which are pretty much going to happen on the 3DS. Just watch them release a $200 revision, and shortly after announce Pokemon. Or better yet, bundle the two.

Money just falls into Nintendo's laps.

#16 Joshua

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Posted 28 January 2012 - 02:25 AM

I like how no one mentioned Pokemon or Super Smash Bros., which are pretty much going to happen on the 3DS. Just watch them release a $200 revision, and shortly after announce Pokemon. Or better yet, bundle the two.

Money just falls into Nintendo's laps.


Nintendo and Gamefreak have the ability to summon money in an instant. Just release a core Pokemon game then, BAM, instant cash!

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#17 SleepyGuyy

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Posted 31 January 2012 - 08:42 AM

Nintendo is massive... more massive than many think. They lost a lot of profit but they can take several of these hits before submitting. This is a global company that has some of the highest games sales rates of any game developer & publisher. Nintendo lost stock, that is true, and they will gain it back because people still enjoy Nintendo games & therefore the company is valuable. The day Nintendo fails to make good games , or people stop appreciating thier games, is the day Nintendo dies. Im pretty sure 97% of forum members here are Nintendo consumers, and there are hundreds of Nintendo focused forums out there (i admit that is not enough to sustain Nintendo but it just shows they are still beloved). Nintendo has a long history of great game making, i doubt they're gonna throw it away because of a bad year. Plus Nintendo really lost money because of the sloppy 3DS launch and the lack of Wii games combined. From what ive seen they have realised they cannot make enough games themselves to keep a console running. I've also seen evidence of trying to attract more devs to there console (eg: flexible online system, easy to develope for WiiU, free advertising on Nintendo channel / video) I think Nintendo is s smart company and people just doubt them because of the Wii, but people don't completly realize what the wii was meant to do , and what they want to do with the outcome. They will continue for at least 10 more years, Satoru Iwata is a good president for the company and we should only be scared once he steps down , or when Shigeru Miyamoto does..... Anyway they're doin goooood, and they will return to a normal success in 2012.. im sure of it.
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#18 NovusRex

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Posted 31 January 2012 - 09:24 AM

Not worth it at this point, Rare is a completely different company to what it was 10 years ago. What they SHOULD do is buy the rights to franchises like Banjo, Conker, Killer Instinct, etc. and make some awesome Wii U/3DS exclusive games with them. If Wii U had a new Conker game filled to the brim with swears and lude references.. I don't think anyone would question how hardcore the console is. ;)


I'd kill for a new Conker game. Sequel to or prequel to CBFD anytime.. God I love that little horny drunk squirrel ^^,

About losing profit, well.. It doesn't mean too much. The sales of the 3DS were a bit disappointing at start, but now after the price reduction things seem to go well. More 3DS games coming out aswell and with all the hype surrounding the WiiU, it seems Nintendo hasn't got much worries. Nintendo never has to worry, really. Mario, Pokemon, Zelda.. With names like these, they can always push the envelope, e.g. making a big multiplayer game related to these.

#19 mootap

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Posted 31 January 2012 - 12:42 PM

Dude..It's Nintendo,They still have loads of money that they earned from the ds,the wii.Nintendo is trying to rebrand themselves and obviosuly it's going to take some time..But the 3ds is picking up espeicially after the price drop and some good games and will likely to keep selling since a lot of major titles are coming,Metal Gear,Kid Icarus,Kingdom Hearts,Animal Crossing etc
But the wii U is when we'll really see how things go and by the looks of it,they'll be fine...as long as they have a good launch and dont market it as too casual
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