Nintendo Profits Drop As Gamecube Loses Ground

Thanks to several readers for pointing to a Bloomberg Japan report reporting a likely fall in Nintendo's profits, as they lose market share to the Xbox and sell less Gamecubes compared to this time last year. They're still on course for a profit of hundreds of millions of dollars, mind you, but the article does say that "some investors criticized Nintendo for failing to announce any significant plans to boost its game business.. at last week's Electronic Entertainment Expo." Investors also seems worried about increased competition for the Gameboy Advance, in the form of Sony's PSP handheld.

Comments

Just a *likely* fall in profit

[johannesg]

The (gaming) press is at it again, talking a good company into the ground before anything has really happened. This has happened so many times now: "company X might be going down!" followed by noone buying a machine from company X since it might not be a sound investment - thereby causing the bogus predication to become true.

Nintendo is doing fine. They are making a nice profit. They are writing great software. They own lots of profitable franchises that noone else has. They may have slightly less sales than Microsoft, but that does not mean they have been wiped off the face of the earth.

I hope Nintendo turns things around

[agentmouthwash]

It's sad to see Nintendo going the same path as Sega. Right now Nintendo has the same niche that Sega once had with the Dreamcast; fun addictive light-hearted games. Nintendo greats like Animal Crossing, Mario Kart, Zelda- and sega greats like Crazy Taxi and Space Channel 5 and Samba De Amigo. I really hope that genre doesn't go away in a gaming world ruled by Sony and Microsoft. The way things are going... I think it will.

Re:They should just do Software

[Dot.Com.CEO]

Disagreeing with someone, tactfully or not, does not merit the branding of "fanboy". Fact is, I enjoy games and Nintendo offer an oasis of innovation where others walk with fear of putting out something new. They never take the easy way out, and even when they disappoint, they do with style (Mario Sunshine).

As far as the 3d capabilities of the n64 and the psx are concerned, the psx's 3d capabilities are laughable compared to the n64. That is what I mean. It was the N64 and mario 64 that pushed the console gaming world to 3d. You had NOTHING like that before.

As I said in my original post, perhaps innovation was not the correct word. But the N64 era had games that were absolutely unforgetable, and they pushed gaming in a different direction. Yes, they have lost the edge now and, much as I love Zelda's latest outing, it does not amaze me like Ocarina did. Metroid was a surprise, yes, but I guess we'll have to wait for the next Nintendo console to see true innovation.

The "you are wrong" part, btw, refered to the assertion that Nintendo should stick to software. I think he was wrong, and I said so, writing a couple of paragraphs framing my ideas a bit. If I offended you, well, it was not my intention.