Nintendo may announce first profit warning in six years

[Ley]

Nintendo may be on the verge of warning of a drop in profits and revenue for the first time in six years, according to this Bloomberg piece.

Net income will probably fall 11 percent to 249.3 billion yen ($2.7 billion) this fiscal year, the first drop since the 12 months ended March 2004, according to the median of 10 analyst estimates compiled since the company cut Wii’s price on September 24.

Nintendo is scheduled to report earnings on October 29.

“Nintendo may cut its profit projection about 30 percent because of sluggish sales in the first half, the price cut for the Wii and currency-related impact,” said Satoru Kikuchi, an analyst at Deutsche Bank AG in Tokyo.

“Investors are expecting the company to fully reflect its business environment in its forecast.”

Whoops. Lots more through there.

Source

[Fyree the Spirit God]

whoa..
definetely a sign of the economy..
hopefully it'll recover

[Moka]

Originally Posted by Ley Nintendo may be on the verge of warning of a drop in profits and revenue for the first time in six years, according to this Bloomberg piece. Net income will probably fall 11 percent to 249.3 billion yen ($2.7 billion) this fiscal year, the first drop since the 12 months ended March 2004, according to the median of 10 analyst estimates compiled since the company cut Wii’s price on September 24. Nintendo is scheduled to report earnings on October 29. “Nintendo may cut its profit projection about 30 percent because of sluggish sales in the first half, the price cut for the Wii and currency-related impact,” said Satoru Kikuchi, an analyst at Deutsche Bank AG in Tokyo. “Investors are expecting the company to fully reflect its business environment in its forecast.” Whoops. Lots more through there. Source

Thats interesting! but than again its like this doesn't surprise me.

[nelo]

i hope they can recover soon

[SuperSonic]

Wonder if it has anything to do with the Wii price drop, I know 360 and PS3 consoles are both sold at a loss, the Wii was the only one that made any profit.

Sony and Microsoft presumably make money on selling games though, so seems Nintendo is gonna have to step up to get more game sales, which can only be good news for us.

[Zwei]

This doesnt really suprise me. The economy is still bad and the fact that NINTENDO isnt providing us what we want show that even NINTENDO can lose. Shows that ppl are getting money freedom but just dont have that kind of freedom to go crazy and buy video games right now.

Make more games

[Friik]

Hopefully this is just a phase and it wont turn into something serious.
For all I know it could lower Nintendo's morale and just start creating inferior products to sell quickly in an attempt to boost sales.
But then again Nintendo will never resort to such madness!
It'll bounce back, it always does.
Hopefully this low sales trend ends soon.
Head Up Nintendo!!

[Xander]

While I doubt this will cause Nintendo to sell their solid gold Wii's, this is probably a combination of the economy and no real big title that has come out in a while. They'll bounce back.

[Koopa Chrissy]

Maybe it's due to declining Wii sales because the PS3 is selling like Hotcakes! I kid. This is a sure impact of the economy and as Xander said, Nintendo haven't had a big title in a while. I see New Super Mario Bros Wii and Spirit Tracks helping Wii and DS sales this Christmas.

[spencerjj2]

Hopefully next year will be like this year's games, because then for sure they'll get more profit. It's the economy's fault mostly, and it doesn't look like it is getting better.

[hokieman]

well thats what nintendo gets for selling crappy games; no one is buying them and it has resulted. Also the economy...

[leezy97]

The economy is taking it's toll on everything! Hopefully this will convalesce soon.