Nintendo Profits Fall for the First Time in Six Years

not surprised. Nothing particularly new came out in the last while from them...

After 6 years of increasing profits it's not extraordinary that profit goes down. $2.4 billion of profit is still a looot of money.

Uh....if a company is posting a profit how is that bad news?

This isn't a bad news, it's just a news.
They will gain it back with black wii. Next is transparent wii maybe.

Because it'll make nintendo stocks drop. Even if a company is profitable, but not as profitable as analysts hoped, it'll drop the stock price. Much the same line of reasoning that causes a company's stock to go up if it's losing less money than analysts hoped.

Not surprised. Maybe they shouldn't have announced SEVERAL handhelds (DSI, DSI XL, 3DS) within a 1.5 year span, all the while keeping the console at high price.
I think the biggest issue: No Pokemans, no sales. Every new platform had a shiny new game to go along with it, except these most recent ones. It's just an observation.

This is a link to showing things you probably did not know about Nintendo. Pretty cool.

Sorry for the double post. Don't have time to figure the edit.

Did not like link so here it is.

http://www.dump.com/?x=0&y=0&s=nintendo

You know, I can't find the edit link/button anymore under
"Read the comments on the forums"

Did I miss a memo?

Yeah, not much from Nintendo lately but I know Super Mario Galaxy 2 will be comming out soon and so is the new Metroid they are working on. The next Zelda is also being made as well. I don't know how soon these games will be release but typically Nintendo makes top rated games that sell well over 1 million copies. I don't expect their profits to dip for very long.

...until the 3DS comes out.

then nintendo will be able to sit around for another 4-6 years and rake in huge profits out of their cheap-to-make but hot-selling console...

The key to making a profit on game consoles is to make the consoles affordable and the games fun to play. Console manufactures rarely make profit on consoles until near the end of the console's life (or probably never in the case of the PS3), most of their profits come from game sales and licensing fees.

um okay. I can't feel sorry for them or even the smallest iota of concern for their share holders mainly because they still turned over 2 billion in profits. I was happy when I had $50 extra after paying bills last week.

What does nintendo expect? Everyone owns a ds and or wii already.

Maybe people have started to realize that the Wii is overhyped and not really much fun to play?

not big news. there are much less people in the retail stores, no sales in retail no profit.

Hey this is the first step toward Nintendo going into the red.
Which needs to happen unless they start cultivating good 3rd party games on their platform!

The Wii has some great first party titles.
It also has some awful third party titles.
The Black Wii is a sign of lower profits. Nintendo should start figuring out how they can keep their market dominance for the next generation of consoles.

LOL!

oops sorry wrong person to quote.ment to quote transparent wii

They made tons of profit and is now sitting on top of cash, so this isn't such a bad news.

All down hill from here. Hopefully they have plans for HD or they are doomed.........

It's pretty bad news when you consider all the facts.

Typically, the first few years console profits are relatively poor, as companies underprice their consoles and try to make money on the games, while waiting for components costs to go down.

Next, you have total until sales down pretty dramatically, and this with a price cut of 20%. That's pretty bad too. Plus, as you get more consoles out there, you'd expect your game sales to go up. You have a bigger installed base. Still more bad. I guess people don't use their Wiis that much.

It's not terrible, they're still making good money, but the handwriting is on the wall. They need to come up with a new console as the Wii atrophies, and then they can position it like Sony does the PS2, right now. Since the Wii was always obsolete anyway, and it's targeting casual gamers, it could have a long and successful life in that role. Clearly, its role as the Fleet Carrier is compromised, and going to get worse, especially if Sony makes another price cut, and with motion sensing devices imminent for their competitors. They really need to get moving with their next device, before it really starts to hurt.

Nex

Precisely.

I'm no fan of the machine but from commercial perspective the Wii was a stroke of pure genius on Nintendo's part. They pulled this really innovative idea of out the hat and stole the show from the big boys because of it...

The big question is, what will they pull out of the hat next time?

The Wii's software back catalogue isn't exactly awe inspiring and much of that 'casual gaming' goodness can already be got very cheaply on the PC. I think they'll need something more to compete in the next-gen: specially a very good line-up of software. I think the next gen will be less about hardware & gimmicks and more about actual software itself; I could be wrong but that's where I'd say that's it's going...

It wasn't a good year for quite a few companies.

A bit of theory on the stock price drop....A lower profit usually means a smaller dividend paid out, which then means the Required Return on Investment may not be met, which is a comparison of the Dividend to the current stock price (for instance, if the Required ROI is 15 percent, the Stock is valued at $50 then the expected dividend will be $7.50 per share), if profits for that year won't allow for that amount of dividend to be paid or cause the company to go into debt to cover the dividend, then either the Share price will adjust to account for the required return on investment (Dividend might be paid at $6 and therefor the share price will adjust to $40 for %15 ROI)or risk will increase due to added liabilities with an adjustment to the share price depending on the assessment of that risk.

People finally realizing how shitty the Wii really is?