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GN Mailbag 5/14
 

Nintendo FY11/12 - smaller-than-expected losses, revised forecast, soft/hardware sales updates (Wii U included)

Net sales Operating Ordinary Net Income
Jan forecast 660,000 -45,000 -95,000 -65,000
Actual result 647,652 -37,320 -60,863 -43,204

Yen was depreciated beyond our exchange rates assumptions in terms of the rates at the end of the fiscal year, and assets in foreign currencies evaluated by the exchange rates at the end of the fiscal year generated valuation profit (reversal of valuation loss). Therefore, ordinary loss and net loss became smaller than we had assumed.

Nintendo expects to stop selling the 3DS at a loss by September. The price of the system will remain the same, but manufacturing costs and other aspects will return Nintendo to making a profit on each system sold.

(**) FY 2011/12 Actual (Unit:Million)

NDS Wii 3DS

Hardware Sales 5.1 9.84 13.53
Software Sales 59.0 102.37 36.0

(**)January 26, 2012

(**) FY 2011/12 Revised Forecast (Unit:Million)

NDS Wii 3DS

Hardware Sales 5.5 10.0 14.0
Software Sales 59.0 100.0 38.0


(**)January 26, 2012
(*) Original Forecast (Unit:Million)

NDS Wii 3DS

Hardware Sales 11.0 13.0 16.0

Software Sales 67.0 120.0 62.0

(*)April 25, 2011

DS Worldwide Hardware Unit Sales (Unit:Million)

Ap-Jn Jl-Sp Oc-Dc Ja-Mr FY LTD

FY 2004/05 - - 2.84 2.42 5.26 5.26
FY 2005/06 1.29 2.19 5.69 2.29 11.46 16.72
FY 2006/07 4.54 5.55 8.79 4.67 23.55 40.27
FY 2007/08 7.00 6.37 11.14 5.81 30.32 70.59
FY 2008/09 6.96 6.78 11.89 5.56 31.19 101.78
FY 2009/10 5.97 5.73 11.65 3.76 27.11 128.89
FY 2010/11 3.15 3.54 9.01 1.82 17.52 146.42
FY 2011/12 1.44 1.14 2.06 0.46 5.10 151.52

NDS Worldwide Software Unit Sales (Unit:Million)

Ap-Jn Jl-Sp Oc-Dc Ja-Mr FY LTD

FY 2004/05 - - 5.01 5.48 10.49 10.49
FY 2005/06 5.33 7.98 22.59 14.05 49.95 60.44
FY 2006/07 18.35 24.79 50.65 29.75 123.54 183.98
FY 2007/08 34.26 41.23 71.39 38.75 185.63 369.61
FY 2008/09 36.58 48.43 78.77 33.53 197.31 566.92
FY 2009/10 29.09 42.06 50.22 30.22 151.59 718.5
FY 2010/11 22.42 32.42 44.15 21.99 120.98 839.48
FY 2011/12 12.13 16.86 22.21 9.62 60.82 900.31

Wii Worldwide Hardware Unit Sales (Unit:Million)

Ap-Jn Jl-Sp Oc-Dc Ja-Mr FY LTD

FY 2006/07 - - 3.08 2.76 5.84 5.84
FY 2007/08 3.43 3.90 6.98 4.31 18.62 24.46
FY 2008/09 5.17 4.92 10.42 5.43 25.94 50.4
FY 2009/10 2.23 3.53 11.29 3.48 20.53 70.93
FY 2010/11 3.04 1.93 8.75 1.36 15.08 86.01
FY 2011/12 1.56 1.79 5.61 0.88 9.84 95.85

Wii Worldwide Software Unit Sales (Unit:Million)

Ap-Jn Jl-Sp Oc-Dc Ja-Mr FY LTD

FY 2006/07 - - 16.37 12.46 28.83 28.83
FY 2007/08 15.98 21.0 47.38 35.25 119.61 148.44
FY 2008/09 40.4 41.0 82.39 40.79 204.58 353.02
FY 2009/10 31.07 45.14 80.43 35.17 191.81 544.83
FY 2010/11 28.17 37.04 85.33 20.72 171.26 716.09
FY 2011/12 13.44 23.01 52.61 13.31 102.37 818.46

3DS Worldwide Unit Sales (Unit:Million)

Hardware Sales Ap-Jn Jl-Sp Oc-Dc Ja-Mr FY LTD

FY 2010/11 - - - 3.61 3.61 3.61
FY 2011/12 0.71 2.36 8.36 2.10 13.53 17.13

Software Sales Ap-Jn Jl-Sp Oc-Dc Ja-Mr FY LTD

FY 2010/11 - - - 9.43 9.43 9.43
FY 2011/12 4.53 3.60 19.91 7.96 36.00 45.42

FY 2012/13 Nintendo Forecast (Unit:Million)

3DS NDS (Wii +Wii U)

Hardware 18.5 2.5 10.5
Software 73.0 37.0 70.0



Check out the full reports here and here

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Discussion Preview
12 total comments (View all)
No Avatar
26 Apr 2012 05:28

seems the losses are less then they expected but it looks like they are in a bit of trouble with , the 3ds in NA
User avatar
26 Apr 2012 05:48

Not sure what I am seeing here. Lots of numbers badly formatted (as far as I see).

Ehh..

Obligatory "BRING ON THE DOOM AND GLOOM POSTS"
No Avatar
26 Apr 2012 05:56

actually its batter then they forecasted, but its still a loss because of the yen appreciation of the yen .
damn my English is bad!
No Avatar
26 Apr 2012 06:34

the 3ds has done very very well and it might be time for the first remodel to push it to the next level
No Avatar
26 Apr 2012 06:45

but it still didn't meet their expectations they have a lot of explaining to do tomorrow .
User avatar
26 Apr 2012 08:07

@stealth they are still selling it at a loss. I don't see how they can make a remodel keeping a similar price while improving on several aspects
User avatar
26 Apr 2012 09:20

It's not so much that the losses are terrible, just that Nintendo is used to be being wildly profitable, so it seems bad by comparison.
No Avatar
26 Apr 2012 09:58

even if they did a redesign it wont be cheaper .

the guts of the 3ds are big as it is if they remodel it its supposed to be the XL model,which will make it more expensive ,the screen,battery size, internal memory, and god forbid {second nub}!
not to mention a bigger ad campaign then the original 3ds.
User avatar
26 Apr 2012 10:08

Nintendo going third party confirmed.

:roll:
User avatar
26 Apr 2012 17:15

So Nintendo should go back to being a profitable company pretty soon, unless the Wii-U launch goes horribly wrong.
User avatar
26 Apr 2012 17:32

The game industry is changing rapidly. Nintendo was doing its own thing for a long time, not paying attention to industry trends. Its helped them and hurt them both. They are cutting edge on some ideas, while others they're still playing catch-up. The 3DS was horribly misjudged, and while its no longer a sinking ship, there are still a few holes in its hull to patch up.

I wish this report was easier to read. The one on Joystiq clearly puts the blame for Nintendo still being in the red on slower than anticipated software sales.

View the full discussion!

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