Viewing Thread:
"Ditch the Gamecube Nintendo (43% drop in profit)"

I know some of you will point out the fact that, in spite of the loss compared to last year's earnings, Nintendo has still accrued a profit to the tune of $600,000,000. While that is a large sum of money it needs to be realized that the amount of that profit is not too far from being HALF of their previous year's profits. That means that Nintendo has that much money LESS to put into things like research and development for things like new games and new systems. Also, game companies are less likely to put their time and money into a company that posts losses as massive as 43%. If this trend continues, it could have some nasty repercussions. People could lose their jobs (I feel sure some heads have already rolled after the news of a profit loss this significant), for one thing. And companies will not want to invest in another company that will not post a meaningful profit for their efforts. So yeah, Nintendo still posted a profit. But when that profit is in the shadow of a previous year that was 43% HIGHER, then the 'profit' tends to lose significance. Just some things to consider.

The Gamecube is costing Nintendo big and sagging sales are a large part of their problem, ditch the deadwood before it's to late.

I know some of you will point out the fact that, in spite of the loss compared to last year's earnings, Nintendo has still accrued a profit to the tune of $600,000,000. While that is a large sum of money it needs to be realized that the amount of that profit is not too far from being HALF of their previous year's profits. That means that Nintendo has that much money LESS to put into things like research and development for things like new games and new systems. Also, game companies are less likely to put their time and money into a company that posts losses as massive as 43%. If this trend continues, it could have some nasty repercussions. People could lose their jobs (I feel sure some heads have already rolled after the news of a profit loss this significant), for one thing. And companies will not want to invest in another company that will not post a meaningful profit for their efforts. So yeah, Nintendo still posted a profit. But when that profit is in the shadow of a previous year that was 43% HIGHER, then the 'profit' tends to lose significance. Just some things to consider.

The Gamecube is costing Nintendo big and sagging sales are a large part of their problem, ditch the deadwood before it's to late.

A Nintendo spokesman was quoted commenting:

Back.
Of.
The.
Net.

Ditch life Top Score.

You're clearly not very good at it.

Price cuts might've affected things ever so slightly too.

/sarcasm

It all very well cutting the price of the GC to £79.99, the trouble is that has made little difference to sales of the GC and to make it worst has cut profit as at that price Nintendo must be losing bucket loads on each unit. Sony and Xbox don't have this problem as they don't have to pull in the customers to the same extent, this means they have kept the price of the consoles at 3 figures while still probably losing money on them it is not as much.

According to Reuters, who did some rather confusing maths, estimated group net profit for the three months ending 2004 was down by 43%. Shares in the company fell by 2.3% on the announcement of the figures revision.

This cloud does however have a silver lining: DS Hardware sales forecasts are up again, now to 6 million units from 5 million previously predicted. That said, sofware sales forecasts have been revised down to 10 million.

The reason given for this by the company was surprisingly frank: there just isn't much software available for the machine, with Nintendo having decided to hold back release of new titles for the unit until the new business year.

Dringo wrote:
>
> The reason given for this by the company was surprisingly frank:
> there just isn't much software available for the machine, with
> Nintendo having decided to hold back release of new titles for the
> unit until the new business year.

This is what killed the N64 in Japan. No new games so people returned their N64's.

LEARN you crazy b@stards, LEARN!!!11111

I blame the Yen.

Hedfix wrote:

> This is what killed the N64 in Japan. No new games so people returned
> their N64's.
>
> LEARN you crazy b@stards, LEARN!!!11111

The N64 died? I'm pretty sure it was a very successful console.

It is true there were not many games last year, there were a few, more than during the N64 "droughts" but not as many as there will be this year.

People returned it in large numbers in Japan.

Not a good start. It never fully recovered in Japan, although Pokemon helped a lot.