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

Posted by ryuzaki0 on from the sony's-bear-market dept.

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'."

11 of 290 comments (clear)

  1. They are having trouble... by gQuigs · · Score: 5, Funny

    selling their rootkit...

    1. Re:They are having trouble... by schnell · · Score: 5, Insightful
      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.

      --
      "95% of all Slashdot .sig quotes are incorrect or completely fabricated." -Benjamin Franklin
  2. It's only going to get worse by AKAImBatman · · Score: 5, Insightful

    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.

    --
    Javascript + Nintendo DSi = DSiCade
    1. Re:It's only going to get worse by AKAImBatman · · Score: 5, Informative

      Here we go again.

      1. That Lik-Sang is gone. They sold ModChips which were illegal. (Whether you and I believe they should be or not.) The Lik-Sang that Sony sued is a reputable dealer of imported goods, and the ONLY distributor of popular products like the TopGun LCD Light Gun.

      2. Sony's lawsuit was only a minor issue. Their tactics were what pissed everyone off. They filed a suit against Lik-Sang in nearly every country in the European Union. Such tactics could only have one outcome: Lik-Sang will close down business to avoid having to fight dozens of costly lawsuits.

      So no, I don't particularly care that Nintendo once sued Lik-Sang. I wouldn't even care that Sony sued Lik-Sang to stop the PS3 imports to Europe. I *do* care that Sony forced Lik-Sang out of business thus preventing them from selling hundreds of perfectly legal products for which many of them they are the only distributor.

      --
      Javascript + Nintendo DSi = DSiCade
    2. Re:It's only going to get worse by DrXym · · Score: 5, Informative
      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."

      And that's exactly what they did do. Over a full year ago. Lik-Sang had over a year to cease and desist. It didn't.

  3. Corporate Governance and Japan by MBraynard · · Score: 5, Interesting
    This is not really a bad thing for Sony and Americans are looking at it much differently than the way a Japanese investor does.

    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.

  4. VG Cats covered this one pretty well already... by sdaemon · · Score: 5, Funny

    http://www.vgcats.com/comics/?strip_id=212

    Not much more really needs to be said :)

  5. Why should I care? by thatguywhoiam · · Score: 5, Interesting
    Seriously. From a 'gamer' (ugh) perspective, I could give a flying fuck about how well these entities are doing financially. Call me when one of them is about to fold.

    (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.
  6. Re:Wake up by Anonymous Coward · · Score: 5, Insightful

    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.

  7. Brain dysfunction by littleghoti · · Score: 5, Funny

    [quote] Nothing Sony has done to anyone has had any effect whatsoever on its profits. If you honestly think .005% impacts their bottom line, you need a reality check. [/quote]

    Or to re-phrase
    Sony's profits or losses are due to fairies and the movements of the celestial bodies. Nothing the company does affects their bottom line.

  8. Re:Wake up by KDR_11k · · Score: 5, Insightful

    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.".

    --
    Justice is the sheep getting arrested while an impartial judge declares the vote void.