Nintendo Profits Up 72%, Sony's Down 94%

Gamasutra is reporting on reporting, with financial information from some of the large gaming companies becoming available this week. Nintendo, who had already previously raised projections, saw their profits up 72% over last year. This dramatic increase was credited largely to the DS, with 10.9 million units sold in the first six months of this year alone. Sony, on the other hand, dropped profits by 94% over this time last year. The company attributes this largely to the battery recall and PS3 start-up costs. From the article: "The company's games division reported a ¥43.5 billion ($366.6m) loss, from a ¥8.2 million ($69,000) profit in 2005, thanks to research and development, manufacturing and marketing costs related to the launch of the PlayStation 3. Sales and operating revenue were down by 20.5 percent to ¥170.3 billion ($1.43bn). A decrease in hardware sales worldwide was attributed to a drop in price for the PlayStation 2 and PSP. Software sales also decreased overall, although individual PSP sales were up on the previous year. Combined profit from the PS2 and PSP business was described as 'relatively unchanged'."

Comments

It's only going to get worse

[AKAImBatman]

Nintendo is garnering a great deal of good will (though the one controller in the package is a little bit of a setback) while Sony continues to tick off its customers. With Sony's latest move against Lik-Sang, the movement to boycott Sony is stronger than ever. So even after Sony can no longer claim the PS3 launch as a major cost, their profits are liable to keep dropping. Which will only cause them to make another stupid move (perhaps incarcerate their customers?) which will draw even MORE boycotts. Their profits will drop, and the investors will start getting nervous. And then....

Well, he're hoping for a bright future with the current lot of executives FIRED.

Re:Wake up

[Anonymous Coward]

If you think that the people that Sony have pissed off with their rootkits, lawsuits, and causing Lik-Sang to shut down aren't the same people that they're relying on as early adopters for the expensive ps3, then you need a reality check.

Re:Wake up

[KDR_11k]

I think those are really the least significant blunders of theirs. The first and foremost problem they're facing is the price of the PS3 along with arrogant comments like "You'll want to get a second job to afford the PS3!" and "Europe loves waiting.".

Re:They are having trouble...

[schnell]

Or poor marketing. If it wasn't for /., I'd probably not have read much about the PS3. Less than a month before launch, I've not seen a TV ad or recall seeing other ads.

Actually, any marketing they do at this point is going to be a waste. They already know their initial (and pre-Christmas) shipments will sell out many times over to the people who are already planning on buying one. Spending money trying to get more people to go out to the store and buy something that isn't there is a waste.

So I agree that they haven't ratcheted up the "buzz-meter" like they could have ... but with such a massive shortage already likely, they would just be throwing away any money they spent. Expect their marketing expenditures to go up significantly next year once there are boxes on the shelves for "casual" purchasers to buy.