Nintendo Profit Cuts

[Nev]

Nintendo Profit Cuts by Neville

PALGN News: DS price cuts, Gamecube funeral arrangements lower expectations.

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[ZNMS]

The console had it coming.

[Sunrider]

I think the lack of a major Gamecube title this Christmas would have really affected potential profits. They really needed Zelda out this year.

[Capoeira]

Let's just hope the Revolution can revive Nintendo's console outings. If this fails, I can't help but think that the company will be in a bit of trouble. I'm scared.
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Say You Want A Revolution

[838 La]

[Fugie!]

[vegeta]

In trouble? Don't be scared...Maybe read the article again...Nintendo continue to post_big_profits.

Nintendo have thier fingers in far too many pies to ever be in trouble. If their fiscal health depended on the success of their main home consoles they would have gone bust with the 64. Sure, greater success for their last too consoles would have made their profits even happier but they have made, and continue to make, a lot of their money from handhelds and the gaming franchises associated with these. They also have a controlling share in the Bandai toy company to name but a few of those other 'pies'...The success of the revolution would only be a bonus to their profits...and a little bitter something to shove in the sony and microsft execs pipes so they would choke on their own....(rant aborted for sake of this thread staying constructive )
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there was crack on the corner and someone dead and fire coming out of a monkeys head.....don't get lost in heaven

[DancesInUnderwear]

I'm honestly surprised Nintendo haven't made a GCN version of Mario Kart Arcade GP to help with their lack of Xmas titles. It wouldn't be that hard, would it? And it would sell a whole lot more than their current Christmas lineup of, what, nothing?
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[David]

[Nev]

You can't compare Nintendo to Sega, as they really are completely different situations.

By the time the Dreamcast came out, Sega was in serious financial strife. This wasn't due to lack of sales of their main consoles. The Mega Drive sold like wildfire, the Saturn performed well east-side, and the Dreamcast was going gangbusters until Sega pulled the plug.

It was their add-ons that killed them - the amount of money invested in the Mega CD and 32X consoles which was basically money down the drain. Had Sega the financial reserves Nintendo enjoys, the Dreamcast would probably still be around today.

Nintendo is now, and will continue to get by quite comfortably, even with lesser sales than its competitors. Their policy of releasing quality products at an affordable price-point, both for themselves and the consumers, will ensure that they get by without taking a loss.

Only IF the Revolution AND the next iteration of Gameboy sold miserably and ended up costing them money would Nintendo EVER consider leaving the console race. But if they stick to creating software and hardware that sets them apart from their competitors, I don't see that happening anytime soon.

Basically, Sony and Microsoft are the high flyers throwing money at the stockmarket, risking huge losses for a chance at a big windfall, while Nintendo is the quiet businessman working in an uptown office. He may not be a multi-millionaire, but he's getting by quite comfortably.
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"There are always casualties in war, gentlemen. Otherwise it wouldn't be war. It'd just be a rather nasty argument with a lot of pushing and shoving."

[EvilHayama]

I'm fairly certain that Nintendo would survive if all they did was make their own consoles and release their own franchises on them, which is pretty much what they do now. More hardcore gamers might consider mario games to be boring and old news, but for new generations of kiddie gamers it's all new. I suspect that the Rev will perform like the DS, where there's no huge buyup at the start, but instead steady sales boosted occasionally by market-expanding games like Nintendogs.

[Infested Jibbs]

Are you sure theres a full 200mhz diff?With amd's numbering system(ie where a 2800xp+ doesnt equal 2.8 ghz) im sure theres not even a big gap like that.
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[DancesInUnderwear]

[Nev]

[KickyFunkFresh]

Oh well, in my eyes the GCN has had a good run. Just about every memorable gaming moment from this generation has been on that console. And as with each previous Nintendo console, is full of games that I regard as true classics.

It would have been easy for Nintendo to give up on the console early on, but they didn't, and for that I commend them.
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http://kickyfunkfresh.deviantart.com/

[swifty6]

wat really killed GCN is the release date
the timing was way out after PS2 which was better and before Xbox Which became the better out of the lot Game cube for me just didnt do nothin the controls for one look suited to a much younger audience but anyway thats just how i saw it

[vegeta]

Thanks David....Couldn't be bothered checking the details of my comments But I knew I was more or less right with what I said That admission should give all great confidence in the veracity of my future posts

That's interesting about the 64. I was always under the impression that the ps1 killed it but I never checked the figures. Good to know as the 64 was a_far_superior console in so many ways! Anyway, good to have someone who can clean up my half-informed sweeping statements!
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there was crack on the corner and someone dead and fire coming out of a monkeys head.....don't get lost in heaven

[ObsoletE]

it (the PS2) certainly isn't more powerful than the Gamecube.

but i think you're right about the timing. people had just spent $700 on a PS2, justifying it because it could play DVDs as well, and suddenly another unit comes out that doesn't (unless you got the Panasonic DVD/NGC combo unit).

i don't know what the launch price was in Australia, but given the price of DVD players at the time, it probably seemed to most people that the PS2 was the better option.

the colour scheme Nintendo chose could've affected sales too. it does look a lot like those FisherPrise baby activity centres in terms of colour, rather than any other consumer electronic device, like the PS2. i can't explain the XBox in this regard though.

ultimately though, i think the NGCs failure in Australia was due more to a lack of continued support from Nintendo. Sony and MS poured (and continue to pour) a lot of money into keeping their respective brands on people's minds. Nintendo started well, plenty of coverage, then nothing.

EDIT: fixed typo, i knew what i meant
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[Capoeira]

Nintendo's longstanding dominance in the console charts has been shattered. The Revolution can be Nintendo's saving grace, but if it fails, I don't think that anything Nintendo can do will ever put it back in the top spot in the eyes of the gaming community. That could be the most damaging factor. Sure Nintendo makes more money from efficient production tactics, but if your target market continually dwindles away into the competitions pockets, those profits won't mean shit.

The Revolution has to succeed. I personally think that it has a very good chance, but I still can't help but think Nintendo has gambled a hell of a lot on their latest roll of the dice.
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Say You Want A Revolution

[EvilHayama]

[vegeta]

Sure Capoeira, but that is no surprise. When companies like sony and microsoft enter a market with a bottomless pit of money to throw at it what would you expect. microsoft and sony have had the money to build good quality hardware and market the absolute shiezer out of it. They have also poured a lot of money into reaching an older demographic.

As was mentioned above, nintendo will now continue to simply build what they want and get by. They will never lose their real fans to which there are many. Too many people know and respect nintendo for the risks they take in the name of gaming evolution. The fact that they have continued to take risks with their hardware in the face of such competition is to their credit. Many other large companies used to dominating an industry would have sold out and gone the mass-marketing way to try and keep up. They have kept true to their idea of console gaming; affordable, bulletproof and revolutionary hardware and software. It might be a very different situation if they had continued to lead the market. Maybe they would still be doing what they are doing but only more so with the extra money but I am just glad they are still making stuff that can get me excited about playing games.

Being the market leader means jack-all if your as naff as microsoft or as hard-nosed, repetitive and boring as sony. They make have great hardware but it's all too safe. Too many people feel the same way to ever. I think the niche that Nintendo have is just too solid to let them down unless they made something really dodgy and started treating their customers like crap...
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there was crack on the corner and someone dead and fire coming out of a monkeys head.....don't get lost in heaven

[Qbert]

[David]

[ObsoletE]

bah, you may have noticed from the rest of my post that that was a typo, substitute "PS2" for "Gamecube" and it should make more sense.

fixed it now.

Jibbs comment is for another thread, for some reason it posted it here.
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[NismoR34]