Nintendo sales down...

[ProgrammingFun]

Well, as Dan said, this should be a topic so now it is...
Feel free to contribute:

This started in the shoutbox and I didn't expect this many replies.

ProgrammingFun wrote:

Nintendo reported a loss after 6 years today.

USEC_OFFICER wrote:

After 6 years? What happend in 2004?

ProgrammingFun wrote:

That WAS 6 years ago.

Insectoid wrote:

Lol.

USEC_OFFICER wrote:

I asking why Nintendo reported a loss in 2004.

ProgrammingFun wrote:

The PSP was introduced? I'm not sure tho...

USEC_OFFICER wrote:

I could see it happening. Or have happening.

Dan wrote:

PSP was realised in North America in 2005....

USEC_OFFICER wrote:

So that rules that out then.

Dan wrote:

I don't know what article you guys where reading but it sounds more like they meant it's the first time in 6 years Nintendo has had a drop in profits, not negative profit. Which would make sense since the DS was released in 2004 and Wii in 2006 boosting profits for a few years after each launch. There have also not been many 1st partly Wii or DS games lately so software sales would logically be down as well.

USEC_OFFICER wrote:

If the DS came out in 2004, then why did they report a loss?

Insectoid wrote:

The DS sucked and everyone stopped buying Nintendo products to show how much they fail.

Dan wrote:

*facepalm*

ProgrammingFun wrote:

I agree with Insectoid (maybe because I just like the PSP better). And the PSP was released in Japan in 2004 (since both Sony and Nintendo are based there, thy would have gotten high sales).

Dan wrote:

December 12th 2004, Nintendo ends there fiscal year at the end of March. Also I am prity sure you misunderstood the latest news about Nintendo's profits being down, but this should be a topic and not in the shout box.....

[Dan]

Here is why you are wrong (did not see this topic when i posted the shout):



I made this using the data from http://www.nintendo.co.jp/ir/en (publicly avalible as nintendo is publicly traded).


As you can see they are not reporting losses, they are reporting less net income. Also it is clear that the PSP did not make them lose magor profit in 2004-2005 when compraed to the income generated by the DS.

[ProgrammingFun]

Dan @ Fri May 07, 2010 5:11 pm wrote:

Here is why you are wrong (did not see this topic when i posted the shout):

I made this using the data from http://www.nintendo.co.jp/ir/en (publicly avalible as nintendo is publicly traded).
As you can see they are not reporting losses, they are reporting less net income. Also it is clear that the PSP did not make them lose magor profit in 2004-2005 when compraed to the income generated by the DS.

I posted this after seeing your shout...

I can also see that you are a major fan of Nintendo.
But then why is the PSP always referred to as the best and most popular portable gaming console on game review sites/shows etc...

[rdrake]

ProgrammingFun @ Fri May 07, 2010 7:52 pm wrote:

But then why is the PSP always referred to as the best and most popular portable gaming console on game review sites/shows etc...

Some people are simply morons.

[ProgrammingFun]

rdrake @ Fri May 07, 2010 7:53 pm wrote:

Some people are simply morons.

That is true...
But personally I just don't like the variety of Nintendo (specifically DS/DSi) games unless I want to play something classical....they just don't have that many interesting shooters (although they do have more Call of Duty titles than the PSP).
I am just not used to the 2 screens either (in some games, I find them quite useless)...

No offense to any Nintendo fanboys *cough* Dan *cough*

[USEC_OFFICER]

Personally, I think that the PSP is better than the DS, but only just. (By a lot.) The graphics are better, and it seems to me like the games are better too. It would be a lot better with a right thumbstick though.

[Dan]

ProgrammingFun @ 7th May 2010, 7:52 pm wrote:

I can also see that you are a major fan of Nintendo.
But then why is the PSP always referred to as the best and most popular portable gaming console on game review sites/shows etc...

This has nothing to do with being a Nintendo fan, it is a simple matter of facts, turth and accounting.

They did not losse money in the way you impleyed, and the PSP had no or litte effect on DS sales or the net income.


As for which system is better or more popular, i never addressed this. However since you borught it up....




Nintendo DS currently has about a 70% market share as of 2009, down from 75% in 2008. However it is not the PSP stealing this 5% but the iPhone.


This does not address which system is "better" but it does show that you are incorrect about the PSP being more popular (at least in terms of market share).


You can't just make up facts.....


Edit: Also in terms of acuatal DS units sold, 128.89 million units have been sold world wide while the PSP is only at 60 million.

Sources:
http://www.nintendo.co.jp/ir/pdf/2010/100506e.pdf#page=23
http://au.psp.ign.com/articles/107/1077450p1.html

[USEC_OFFICER]

But can you show us colourful graphs about the 2004 year? And why net profits went down?

[Dan]

USEC_OFFICER @ 7th May 2010, 8:32 pm wrote:

But can you show us colourful graphs about the 2004 year? And why net profits went down?

My first graph does have 2004 in it, and it can't be due to the PSP as it came out latter and net income went up.

If we look back at the eranrings report from 2004 we see the following in the Review of operations:

http://www.nintendo.co.jp/ir/pdf/2004/040527e.pdf wrote:

During the fiscal year ended March 31, 2004, the Japanese economy began to show indications of an upturn.
Steady exports to the United States and China contributed to the improvement in corporate revenue and increase
in capital investments. As for consumer spending, despite an overall lack of momentum, there was strong demand
for digital home electric appliances. Relating to overseas economies, in the wake of the conflict in Iraq, the U.S.
economy continued to expand steadily due to major tax cuts, low interest rates, and steady consumer spending
resulting in part from the recovery of stock prices. In Europe, the appreciated Euro and record high temperatures
throughout the continent last summer caused a temporary economic downward trend. Although, since the
beginning of 2004, the economy gradually started to turnaround as production began to pick up in response to
worldwide economic recovery.

So it would seem Nintendo blames it on the encomeny.

[SNIPERDUDE]

It's been a while since I've seen such colourful graphs and statistics.
How amusing.

On topic: you can clearly see Dan's recurring point in his first graph if you take a look at it.

[ProgrammingFun]

Dan @ Fri May 07, 2010 8:29 pm wrote:

As for which system is better or more popular, i never addressed this. However since you borught it up....

You did address this once before (in another post).

And I guess you win...but I still like the PSP better.

[USEC_OFFICER]

I see. The economy was terrible before 2004. Since it turned around in 2004, the net profits went up in 2005. Got it. (I wanted a reason why.)

[chrisbrown]

Nintendo CEO wrote:

Our products didn't generate much hype this year, so sales are lower than usual. What do we do?

Director of Marketing wrote:

Blame the economy!

[USEC_OFFICER]

What else are you going to blame? Youself? Please.

[CodeMonkey2000]

What's wrong with blaming the economy? You two seemed to ridicule this, yet you haven't even explained why this is laughable.