Nintendo Raises Forecasts on Wii, DS; Shares Surge

Discussion in 'Video Games and Technology' started by Omega Supreme-1, Aug 29, 2008.

  1. Omega Supreme-1

    Omega Supreme-1 Autobot Sentinel

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    " Aug. 29 (Bloomberg) -- Nintendo Co. raised its full-year profit forecast by 26 percent because of higher-than-anticipated sales of Wii and DS game players, sending the company's shares to their biggest gain in nine months.

    Net income will climb 59 percent to 410 billion yen ($3.8 billion) in the year ending March 31, the Kyoto-based company said today. The guidance exceeded the 382.6 billion yen median of 23 analyst estimates compiled by Bloomberg.

    Nintendo, poised to pass Sony Corp. as the world's largest maker of game players for the first time in at least 13 years, said sales of its Wii console will rise 42 percent this year and reversed projections that DS sales will drop. Before today, the stock had fallen 17 percent since July 30, when the company left its full-year projections unchanged.

    ``This is a very big, positive surprise,'' said Koichi Takatsuka, a senior fund manager at United Investments Co. in Tokyo. ``It looks like Wii and DS are selling well, especially in Europe.''

    Nintendo gained 8.4 percent to close at 51,800 yen on the Osaka Securities Exchange, the most since Nov. 14. The company, which gets almost 80 percent of revenue from overseas, also said the weaker yen will help earnings.

    On July 31, Nintendo's stock tumbled by its daily limit of 5,000 yen in Osaka trading after the company left its annual projections unchanged. The 8.7 percent drop was the biggest decline in six months for a company that raised its forecast three times in the previous 12-month period.

    More Valuable Than Sony

    The stock has tripled since Satoru Iwata, 48, replaced Hiroshi Yamauchi as president in 2002. Nintendo is now valued at $67 billion, 72 percent more than Sony's market capitalization, according to data compiled by Bloomberg.

    The Wii overtook Microsoft Corp.'s Xbox 360 in June as the leading game player in U.S. homes among the latest generation of consoles, researcher NPD Group Inc. said July 17. U.S. sales of Nintendo's machine have surpassed that for the Xbox 360 and PS3 every month but one since it went on sale, according to NPD.

    Nintendo said today that sales of the Wii, equipped with a motion-sensing controller that can be swung like a bat, will probably climb to 26.5 million players this year, exceeding the July forecast for 25 million. Sales of software for the console will increase 56 percent to 186 million units, the company said.

    Nintendo also said it will probably sell 30.5 million touch- screen DS players, 8.9 percent higher than its July estimate of 28 million. Sales of game titles are estimated to climb 6.1 percent to 197 million units.

    Rival Machine Sales

    Sony forecasts it will sell 10 million PlayStation 3 consoles and 15 million PlayStation Portable devices in the year ending March 31.

    Nintendo said it was assuming an exchange rate of 105 yen to the dollar and 160 yen to the euro for its forecasts, compared with a previous projection of 100 yen and 155 yen.

    The Japanese currency, which traded at an average of 105.7 to the dollar this year before today, may trade at 108 yen by the fourth quarter, according to the median of 34 estimates compiled by Bloomberg.

    Nintendo increased its projection for operating profit, or sales minus the cost of goods sold and administrative expenses, by 23 percent to 650 billion yen. The company bolstered its revenue forecast by 11 percent to 2 trillion yen. "

    Tl;dr version:

    - full-year profit forecast by 26 percent (higher-than-expected sales of Wii, DS)
    - Nintendo shares seeing biggest gain in nine months
    - net income rises 59 percent to 410 billion yen ($3.8 billion)
    - Nintendo set to overtake Sony as the world’s biggest game-maker, something that hasn’t happened in over 13 years
    - Wii sales expected to rise 42 percent this year
    - reversed projection that DS sales will drop
    - Wii and DS sales doing very well in Europe
    - nearly 80 percent of revenue is from overseas
    - Wii sales expected to reach 26.5 million this year
    - Wii software sales expected to increase 56 percent to 186 million units
    - DS sales expected to reach 30.5 million this year
    - DS software sales expected to increase 6.1 percent to 197 million units
     
  2. Prowl

    Prowl Well-Known Member

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    While I applaud them for the DS, all I can say about the Wii is that the Honeymoon doesn't last forever. It just simply is not That cool.
     
  3. gil

    gil Godmaster

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    What exactly is you definition of "cool"? Those who are making money off of Nintendo probably think the Wii is "cool". So do all the so called "casual" gamers still playing Wii Sports.

    Also, Nintendo is doing something nobody (including myself, and third party developers) would have predicted: being the #1 home console AND still selling out Wiis 2 years after it's debut. Maybe now the third party guys will start making Final Fantasy/Metal Gear Solid type games for the Wii. But these games did take a long ass time to develope, so it may take a while before Wii get's these games.
     
  4. tikgnat

    tikgnat Baweepgranaweepninnybong. TFW2005 Supporter

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    Nintendo has a poop. Shares surge.

    Seriously, public opinion of Nintendo is so high at the moment a headline like that wouldn't surprise me. But unless the Wii has seriously good software to compete against 360/PS3's AAA titles by this Christmas, that bubble will burst.

    For the Wii at any rate.
     
  5. Johnator

    Johnator 'Til All Are Gone!

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    Most people I know that have a Wii don't even really ever play it. I don't have one because honestly there aren't any games I even want for it. Both PS3 and Xbox360 are better and I own both though I am slowly trying to shift everything to PS3 since my Xbox360 has broken down an INSANE amount of times.
     
  6. OmegaScourge

    OmegaScourge Custom Made TFW2005 Supporter

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    everyone's different i guess...i have a PS3 and a Wii...i dont see myself getting a 360 as there aint no exclusive games that i want...those that are both for the PS3/360, i would rather get on the PS3 anyways...

    But there has been more exclusive Wii games that i have/want than those on the other systems right now...

    Call me a casual gamer if you want...but i'm happy.


    as for AAA titles...Sony was banking on MGS4...but Wii Play and Wii Fit is doing way better...Christmas will make it closer, but i still see the Wii being either #1 or #2 (in the US, while it'll still be #1 in Japan)...


    and as for "cool" ...if you mean casual gaming...seems like Sony and MS is trying to get into that "cool" thing too.
     
    Last edited: Aug 29, 2008
  7. Takao

    Takao Well-Known Member

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    How long have you owned a Sony console? Because Sony has always tried to target the casuals, be in back in the day with Parapapa, a rhythm game, or with the EyeToy, SingStar, and Buzz, which were all out before Nintendo released the Wii.

    Thing is, with Sony and Microsoft, they didn't build a console and devote it to those casual games like Nintendo is.
     
  8. Rhinox

    Rhinox We bring surreal to life

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    Your opinion is duly noted. The profit sheet, however, disagrees.
     
  9. Omega Supreme V

    Omega Supreme V I protect those I care 4

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    I still want a Wii and am close to buying one...it's a good type of console as it makes you get up of your lazy butt and move around to actually play, when you can't play...

    besides, I'm just a casual gamer, heck, the last console I had was a Sega Genesis....
     
  10. toma

    toma eskimo in disguise

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    i honestly think the wii is beyond the honeymoon period. it's been out for almost 2 years now. that argument for its high sales is steadily becoming less and less relevant. despite popular opinion, the wii actually does have games too. fun ones even. it's just a matter of wading through the hordes of shovelware ps2 ports to find them. the vc has been great too in my opinion. it's full of lots of awesome retro gaming goodness. again, there are some clunkers on there, mostly on the tg16, but in the end the bad games don't make the good games any worse. i've got 18 games for my wii so far, and there are games coming out over the next few months that i'm looking forward to... so yeah... as for the ds, well i don't think anyone can say anything bad about it now... although it's first year or two weren't all that stellar either... lots of shovelware and "tech demo" games, but the sales made everyone take notice and look at it now. new control schemes take developers a while to catch on to i guess. remember too, that console games take a lot more time and resources to develop than portable ones. by this time next year, the "no games" argument for the wii will be pretty much invalid.
     
  11. Valkysas

    Valkysas Attack Buffalo

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    I love my Wii. play it almost every day. PS3 is a DVD player, and occasional soul calibur IV machine right now. I have 14 retail Wii games, and 4 retail PS3 games. I don't understand the "Wii has no good games" argument one bit.
     
  12. gil

    gil Godmaster

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    Oh, yeah, let's say the Honeymoon ends on Aug. 31, 2008, what do you expect to happen afterwards?

    The way I see it, the hardcore can't help the PS3 or 360 at this point. If a hardcore gamer dosn't have a PS3 or 360 yet, they fucking ain't hardcore, so unless the hardcore wants to buy two or three systems for themselves, it falls on the casual to boost sales even more.

    The next generation will be interesting.
     
  13. Valkysas

    Valkysas Attack Buffalo

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    you can be a hardcore gamer without those systems. budget, for one. also, those systems might not be what they're into. I know plenty of hardcore gamers that only own a Wii as far as the current gen systems are concerned.

    I know hardcore gamers who currently only own a DS and/or a PS2.

    why do I own a PS3? MGS4. if I werent into metal gear, I would not own a PS3 yet. I don't own a 360 because the only game I would own for that is dead rising.

    but I am a hardcore gamer. I have every nintendo, sega, and sony console and handheld ever released to the public, including hardware variations (but not color variations). I have well over 400 games, and I've played all but around 10 to completion. I play games about 30 hours a week on average. I have to recharge my DS Lite and PSP's batteries every two or three days because I use them so much. would not owning a PS3 make me less hardcore? hell no.
     
  14. Radioactive Ravage

    Radioactive Ravage Ancient

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    Ha! I'm on a fixing spree! Yeah.
     
  15. toma

    toma eskimo in disguise

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    i honestly think the ds is the best system for hardcore gamers right now. maybe it depends on what kind of "hardcore" you are. to me, etrian odyssey and shiren the wanderer are pretty friggin hardcore.
     
  16. gil

    gil Godmaster

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    I see your point. And going by your definition of a hardcore gamer, I guess I gotta include myself as one. I always thought myself a casual gamer, because I don't play no shooters, or sandbox games. But I somehow aquired two NES, a SNES, a Nintendo 64, a PS1, two PS2s, Gamecube, a Wii, an OG fatboy Gameboy, gameboy light, gameboy color, a gameboy Advance, two Advance SPs, and two DSs (OGs) and a shitload of games. While not as impressive as you, I guess I'll call myself a hardcore gamer, even though all I playing right now is FF4 DS, Mario Kart Wii, Mario Kart DS, Boom Blox, and Wii Fit.:thumb  And yeah, I don't own a PS3. Maybe later, but that's what I said about the PSP.
     
  17. Valkysas

    Valkysas Attack Buffalo

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    you don't have to like shooters or sandbox games to be hardcore. no way.

    it's not about the genres you like.

    if YOU are hardcore about your gaming, that's all it takes.
     
  18. jdre_124

    jdre_124 Super Dick

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    QFT. It's all about how much time you put into gaming that makes you hardcore.

    It's become a misconception that you can only play mature AAA shooters or GTA style sandbox games to be considered a hardcore gamer(even though thats what I mostly play) which simply isn't true. If anything it makes you closer to a casual gamer since your limiting your scope of games.

    As for comments on the Wii, eh. It sells a lot. Nintendo hit it big. Good for them. I still don't care for the system even though I own one. Maybe that will change in the future. For now it just isn't screaming for my time.
     
  19. Eric

    Eric RIP AND TEAR!!!

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    Amazingly enough, I'm starting to not give a damn about Nintendo. They pretty much dished out their best games for the system (Metroid Prime 3, Legend of Zelda Twilight Princess, Super Mario Galaxy, Super Smash Bros Brawl). So unless we get a Kirby game for the Wii (or any more GOOD games), the Wii may slip into 2nd place. I'm playing more of my Xbox 360, while my Wii collects dust.
     
  20. tikgnat

    tikgnat Baweepgranaweepninnybong. TFW2005 Supporter

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    These days you can only call yourself a 'hardcore' gamer if you regularly compete and beat a wide range of other people.

    The advent of online gaming/gamerscores means that the ballpark just got a whole lot bigger. Its not necessarily the type of game you play, but how good you are at the ones you DO play.

    From what I gather with my Wii (which isn't much TBH) there isn't much scope for going online and competing? (How many decent online competition games are there? Mario Cart Wii?) My 360 on the other hand introduced me to a whole new world of online pwnage. Mostly against me.

    Except VF5. I'm hardcore with that. Or maybe that should read 'I try to be Hardcore' with that.
     

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