Profits: Nintendo 72% UP, Sony 94% DOWN

[T2k]

http://games.slashdot.org/article.pl?sid=06/10/26/1851229&from=rss

Gamasutra articles:

October 26, 2006

Nintendo Profits Up 72% As DS Soars

Nintendo Profits Up 72% As DS Soars After raising its forecasts earlier in the month, officials from Nintendo have revealed that the company’s second quarter profits rose by 72 percent on the same period last year, following the continued worldwide success of the Nintendo DS.

Results were inline with the forecasts, as net profits for the six months ending September 30th rose by 48.4 percent to ¥54.35 billion ($457.7m) or ¥38.8 billion ($326.8m) for the second quarter alone. Net sales rose by as much as 69.4 percent on the previous year to ¥298.82 billion ($2.52bn), with sales for the second quarter up 59 percent to ¥167.9 billion ($1.41bn).

Sales in Japan alone, not including inter-segment sales, were put at ¥124.4 billion ($1.05bn). North America sales were valued at ¥92.8 billion ($781.6m) and European sales at ¥78.0 billion ($656.9m). As usual, the company also profited from a weak yen, thanks to its considerable foreign currency holdings, gaining an additional ¥24.1 billion ($203.0m).

A total of 10.9 million units of the Nintendo DS were sold during the first six months of the year – an increase of 3.57 million on the same time last year – for a lifetime-to-date total stated at 26.82 million. The company had previously raised unit forecasts from 17 million to 20 million for the year, with expected software sales up 9 percent to 8.2 million.

New Super Mario Bros. proved to be the company’s most successful software title, with 6.76 million units sold worldwide to date. Meanwhile, Brain Training (aka Brain Age) has sold 4.59 million units worldwide during the six months and 8.51 over its entire lifetime. All Touch! Generations games combined have sold a total of 13.54 million units in Japan and 25.27 million units worldwide on a life-to-date basis.

October 26, 2006

Sony Profits Plunge 94% As PS3 Costs Bite

Sony Profits Plunge 94% As PS3 Costs Bite Officials from Sony have announced the company’s fiscal results for the three months ending September 30th, showing an expected poor result as the company was hit by fallout from its global laptop battery recall and start-up costs for the PlayStation 3.

The company’s group net profit for the quarter was ¥1.7 billion ($14.3m), down from ¥28.5 billion ($240.2m) at the same time last year. The company lost ¥51 billion ($429.9m) alone on the recall of 9.6 million batteries. The recall prevented the company from enjoying any benefit from a 8 percent rise in sales to ¥1.85 trillion ($15.59bn).

The company’s games division reported a ¥43.5 billion ($366.6m) loss, from a ¥8.2 million ($69,000) profit in 2005, thanks to research and development, manufacturing and marketing costs related to the launch of the PlayStation 3. Sales and operating revenue were down by 20.5 percent to ¥170.3 billion ($1.43bn).

A decrease in hardware sales worldwide was attributed to a drop in price for the PlayStation 2 and PSP. Software sales also decreased overall, although individual PSP sales were up on the previous year. Combined profit from the PS2 and PSP business was described as “relatively unchanged”.

Worldwide hardware shipments during the quarter were put at 5.02 million for the PlayStation 2 (up 0.01 million) and 3.89 for the PSP (up 0.14 million). The company recently cut its shipment targets for the PSP from 12 million to 9 million. Software shipments for the PlayStation 2 were 47 million units (down 3 million) and for the PSP 12.9 million units (up 3.9 million).

In the core electronics segment, Sony's operating profit shrank 71 percent to ¥8 billion, while the company’s movie business also recorded a poor three months with an increased operating loss of ¥15.3 billion.

The poor results have forced Sony to revise its fiscal year profit forecasts up to March 2007, down 38 percent to ¥80 billion ($674.0m) – a decrease of 35 percent on fiscal 2005 results. Sales, meanwhile, are expected to increase by 10 percent to ¥8.23 trillion ($69.34bn).

 

[Neutron]

Wow, Sony hasn't sold a single unit and they are already losing money big time.

 

[Bunkhouse]

Sony pays for the consoles up front (manufacturing & stuff), then gets the money back when people buy the units. So if the consoles don't sell, then they don't recoup any money.

 

[hpman247]

Wow. I didn't realize the DS was such a success. I have one and think it's the most worthless handheld that I have ever owned. I also have a PSP and it's ok, nut nothing special, but definitely 100X better than the DS.

I remember me and friends used to joke about people in HS with their DS's and we'd chill and play our PSP's. Looks like the whole world was actually laughing on us lol. Ohh well, laugh it up, you cant beat the thrill of knowing ur getting on someones nerves.. Like T2K does to me, I know he loves every minute of it!

 

[T2k]

I remember me and friends used to joke about people in HS with their DS's and we'd chill and play our PSP's.

Wow... 'xplains a lot...

 

[Bunkhouse]

Here's an image of Nintendo's Stock over the past few years, it has doubled in value in the past 15 months alone.

 

[Jestr40]

Wow. I didn't realize the DS was such a success. I have one and think it's the most worthless handheld that I have ever owned. I also have a PSP and it's ok, nut nothing special, but definitely 100X better than the DS.

I remember me and friends used to joke about people in HS with their DS's and we'd chill and play our PSP's. Looks like the whole world was actually laughing on us lol. Ohh well, laugh it up, you cant beat the thrill of knowing ur getting on someones nerves.. Like T2K does to me, I know he loves every minute of it!

Your thinking of the DS all wrong, my son is in 2nd grade and there isn't a kid in his class that doesn't have a DS. I go to pick him up after school and they are all huddled in little groups playing each other. Kinda freeky actually.

 

[JoeSp]

Nintendo + kids = BIG MONEY. Nintendo has always known where its bread is buttered and given that the cosoles of M$ and Sony's continued leaning towards teenagers and young adults there is plenty of money to be mined in the under 14 year old kids. Nintendo has always been smart about that and continue to go back to the same well over and over. Why move on when there is plenty of money to be made were your market is at? It is a smart business that knows its clients.