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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'."
Over there, they take a longer term view and do not live and die by the quarter like they do here in the US. This is partially cultural. It's not necessarily a good thing but it is a factually true thing. They are more forgiving for this kind of financial result than investors in the US are.
However, another, and not necessarily helpful reason for this patient view is that the equity owners who normally would jump ship are often also the debt holders of the corporation. This is almost unheard of here in the US and the result in Japan is that corporations are more likely to ignore long term problems with a corporation because the best solution (dumping shares) would hurt their debt value so they tend to stay the course and hope for the best.
Sony profits went from 28.4 billion yen last year this quarter to 1.7 billion yen. The battery recall cost 51 billion yen. (via Yahoo!) So, had the battery recall not happened, Sony's profits could have increased (up to 85%, depending on the accounting magic with the recall) even given the development costs for the PS3.
Yes! fuck Sony and their litigious ways!
Let us embrace the beloved Nintendo, who would never stoop so low as to sue Lik-Sang!
(I'm actually surprised Sony hasn't received the Apple treatment - "Beleaguered Sony")
I care that they both have consoles launching and I am interested in trying both. I am interested in the launch lineup. I'm interested in specs. Controllers. Formats. But quarterly reports, do we really care that much?
Anyways, I hope Sony learns from their mistakes and improves. I will vote with my dollars accordingly until they stop behaving badly. I don't want them to "die", as some posters have mentioned; besides being exceedingly unlikely, Sony has made great things in the past. It would be nice to see a return to form, specifically for SCE and Sony Electronics. The media arms I have no use for.
If Jesus wants me it knows where to find me.
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 adds. Or maybe I just don't buy and read game mags. much. I only get my one from EBgames.
"The past was erased, the erasure was forgotten, the lie became truth." ~1984 George Orwell
94% down eh? Ouch.
... hmm how did he put it at E3? ... buy PS3s "because."
But don't worry - Sony will laugh all the way to the bank when you
In all seriousness it's expected for their profits to be in the gutter with the development of the next gen console... the real surprise here is that Nintendo's profits are UP when they have been developing the Wii - sure it's a less intensive system that is probably lower in price, but a 'next gen' console should still suck up a bit of profits.
Im not sure where community relations falls into this since E3 but it's been 6 months - I wonder if there is significant impact by Nintendo's positive view in the limelight in comparison with Sony's more arrogant and egotistical stance (IMO.)
Its Deluxe, son. Deluxe!
Sony used a trumped up basis for their lawsuits, basically lying to the judges involved. They claimed that the electrical devices that Lik-Sang was importing were of dubious quality, were untested in the European countries in question, and could cause consumer harm. Sony left out the part where the electronics were tested and certified, and were every bit as tested and safe as the stuff Sony sold, because *they were the same exact product*. Lik-Sang was reselling official Sony gear, and Sony sued them in such a way that Lik-Sang could not afford to fight it without going bankrupt.
Yes, they are subject to those laws. Of course, they never had a chance to defend themselves. I repeat:
SONY FILED A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY
Did you get that? Probably not. Let me say it a few more times:
SONY FILED A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY
SONY FILED A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY
SONY FILED A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY
SONY FILED A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY
SONY FILED A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY
SONY FILED A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY
Did you get it that time?
Were they? Were they REALLY within their rights to FILE A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY?!? Sony exploited the looseness of the EU consolidation to pull a nasty, underhanded, disgusting legal tactic that was intended to make it too expensive to fight.
1. Sony won by default. Lik-Sang didn't show up, they disolved their company due to LAWSUITS IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY.
2. I will repeat, I DO NOT CARE whether Sony's lawsuit would have been upheld or not. Had Sony handled this properly, Lik-Sang may have had to stop the imports of Sony Consoles, plus pay Sony damages. Instead, SONY FILED A LAWSUIT IN NEARLY EVERY EUROPEAN UNION MEMBER COUNTRY IN ORDER TO PUT LIK-SANG OUT OF BUSINESS. Then they had the gall to turn around and claim that they had nothing to do with it.
I've got two words to describe my feelings about their long string of abuses: BOYCOTT SONY!!!
Can I hear an AMEN out there?
Javascript + Nintendo DSi = DSiCade
Ok, let's say that your argument holds up for a minute. (It doesn't, but we'll pretend, just for your sake.) Then let me ask you:
- Is Nintendo Guilty of distributing Rootkits?
- Is Nintendo Guilty of a massive coverup to hide the fact that they did not recall exploding batteries they knew about?
- Is Nintendo Guilty of arrogently telling its customers to "get a second job"?
- Is Nintendo Guilty of trading on their previous name for quality to produce overpriced, sub-standard electronics?
- Is Nintendo Guilty of giving consumers with defective LCD screens a "will not replace" runaround?
- Is Nintendo Guilty of forcing new firmware upgrades on existing equipment just to lock out the homebrew community?
- Is Nintendo Guilty of ignoring their warranty of fitness on CCD parts they produced?
I could go on and on and on about absuses in recent history that Sony is guilty of. Are you going to tell me that I should boycott Nintendo over the one issue when I'm boycotting Sony for a long string of abuses, with this latest one being the trigger that has pushed me over the edge?
That's inconsistency. Why shouldn't Nintendo get at least part of the slack that Sony has had to date?
Javascript + Nintendo DSi = DSiCade
The point is that Sony didn't have to. Sony could easily have said to Lik-Sang, "We're within ourtlegal rights to request that you not import PS3. We ask that you cease and desist. Legal action will not benefit either of us, but it may become necessary if this can not be resolved between the two of us."
That's a nice, but firm, way of doing things. You're not shaking a legal fist at them, you're giving them the opportunity to talk with you, discuss it, and reach a resolution without expensive court fees.
This is what Sony did. Sony said, "Lik-Sang, here are a dozen or more simultaneous lawsuits in different languages for the same thing. Good luck hiring a team of competent lawyers in every nation in the EU and flying back and forth like crazy between all the hearings, trials, and judgements. We know you can't afford it."
I don't know if you've ever seen the Monty Python skit where they use machine guns and rocket launchers to hunt a mosquito, but that is a good analogy for what Sony did here. They didn't have to put Lik-Sang out of business to stop them from importing PS3s to the EU. They could even have come out of this looking like a decent company that regrettably, but not selfishly, protected their interests.
What they did was unnecessary to stop Lik-Sang from importing. What they did was necessary to put Lik-Sang out of business.
Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
I don't want Microsoft to be utterly dominant in yet another industry without serious competition (which I don't think Nintendo is at this point, even with the Wii).
...
Just one question, why don't you think Nintendo can be serious competition?
You never really explained that
It just seems like a comment that I regularly saw before the PSP was released that people were worried that Sony would dominate the handheld market because Nintendo couldn't be serious competition; and we all know how that is turning out. The most interesting thing about the Wii is not the Wiimote but is the agressive strategy that Nintendo is using for it's first party titles; in 12 months Nintendo will have release Zelda, Metroid, Pokemon, Mario, Super Smash Bros, and Mario Party. With the exception of Animal Crossing and Mario Kart (which could still be announced at E3 2007), Nintendo will have released a sequel to nearly every Million selling Nintendo made Gamecube game.
It is quite possible that in November of Next year we could be commenting on a story that talks about Nintendo's unprecidented and unexpected performance over the past year; which (of course) mentions the unexpected quantity of high quality Million Selling first party games.
Here's a snippet from the article:
Obviously MS should get a nice sales boost of the 360 over the holiday season, especially from gamers who aren't able to get their hands on the extremely limited PS3. It'll be especially important to see how Japanese sales go, thanks to the new Blue Dragon bundle.
-- jchenx
I saw this as well. I thought to myself if this is what Sony calls advertising, then it is right on par with all the other bad things I've been hearing about them lately. Then I too ran for my closet.
- Kal`Goblez
Not to mention, if they get somebody all hot and bothered for an expensive console, and that person gets to the store and they only have competitors products in stock, they would basically be paying for advertising for said competitors. Once somebody has committed to another next-gen console, they aren't likely to migrate to the Sony platform anytime in the near future, if ever.
I think they'd like to keep the casual buyers out of the stores until their product is likely to be there for purchase.