djamb3 Posted November 25, 2005 Posted November 25, 2005 Nintendo Profit Drops 51 Percent This morning, Nintendo reported that its first-half operating profit dropped 51 percent, citing sluggish Gamecube sales, price cut in Nintendo DS, and hefty development costs for the Nintendo Revolution. Shares of Nintendo have risen 13.2 percent for the first six months of the business year, but have underperformed the Nikkei average which has rose 16.3 percent. On a similar note, Nintendo also changed its forecasts for sales of various consoles and handhelds. The company has forecasted fewer Nintendo DS and Gamecube units to be sold, but has increased its forecast for Game Boy Advance units due to the newly released Game Boy Micro system. in nintendojo
Konfucius Posted November 25, 2005 Posted November 25, 2005 That doesn't sound good but the problem with these per cent numbers is that you have no idea how much money it really is - so 50% could seem pretty bad, when in the end they still have a lot of operation profit left - sure they had double the operation profit before. And I guess a drop towards the end of a console generation is just normal. But if the Revo performs as we all hope Nintendo won't have to worry anymore
DiemetriX Posted November 25, 2005 Posted November 25, 2005 I'm thinking about buying stock in Nintendo soon. In a Way it's good that its low now. I hope they will sky rocket when Nintendo Revoltuion comes.
Wesley Posted November 25, 2005 Posted November 25, 2005 One minute they are up, the next they are down. It goes like this a lot don't worry about it.
DCK Posted November 25, 2005 Posted November 25, 2005 Yeah, it's still profit, they haven't made a loss in ages.
Hellfire Posted November 25, 2005 Posted November 25, 2005 Not only are they still in profit, but this is natural.It's the last breath for GC, so sales are bad, the handheld market place is more crowded now, the Yen isn't doing very well, there's an economic crisis going on with oil prices and all and they're investing in Revolution without seeing the money return until it launches. So, it's pretty normal.
gaggle64 Posted November 25, 2005 Posted November 25, 2005 It all be because of R&D for the Revo, as well as the GC coming ot an end. They did predict lower profits.
Josh64 Posted November 25, 2005 Posted November 25, 2005 Oh well, when the Revoloution comes they will be fine although when the DS is coming to its peak with Mario kart DS, AC and Metroid Prime Hunters around the corner im surprised they don't expect as much sales for DS
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