Nintendo's Profits Fall On Gamecube Sales

Gamasutra reports that Nintendo's sales have dropped 21% compared to last year's numbers, largely on sluggish Gamecube sales. From the article: "Although a significant fall, Nintendo remains the most consistently profitable console hardware manufacturer when also factoring in game sales, especially compared to nearest rival Microsoft, which is estimated to have lost around $4 billion on the Xbox in the last five years. Nintendo officials are sticking to full year forecasts of operating profit of ¥90 billion ($758m), net profit of ¥75 billion ($631m) and sales of ¥400 billion ($3.4bn)."

Comments

Re:Long Term Sales?

[Anonymous Coward]

Almost a 1:1 ratio. Microsoft has lost over 5 Billion and nintendo has made over 5 billion in profit, this generation.

Sony has made about the same as nintendo but sony has to sell serveral times more. Nintendo has a very streamlined setup.

What Microsoft is doing is borderline illegal. But Bush is in office so the DOJ will do nothing. Microsoft can lose another 5 billion this generation and not be worse off as a company. They will keep taking a lose till sony and nintendo fold. Then they will charge whatever they want.

Profit center of each company.
Microsoft=Office Software
Sony=VideoGames and Home entertanment(Music,Movies).
Nintendo=VideoGames only.

I applaud Nintendo

[NVP_Radical_Dreamer]

I applaud nintendo for being able to pull this off. In an era where console companies are losing money left and right, they are consistantly able to post a profit. I think much of this stems from innovation of their products. Even if they sometimes fail (gb printer, virtual boy, power glove) the times they hit it, and when they do they hit it big. If you remember, they are the ones who pioneered the handheld controller as an alternative to the joy stick. They also pioneered shoulder trigger buttons, analog sticks, rumble feature, OEM wireless, and are now giving a stab at a gyro based contol system.

You can call them childish or for kids all you like, but there are few people who can say they dont truely enjoy the vast majority of what nintedo has created.