Nintendo’s profits drop 21%

[wraggster]

Nintendo’s first-half profits dropped 21% for the period ending September 30. The company cites sluggish GameCube sales and slower US demand for the decline. Reuters writes: “Nintendo said last month that it believed GameCube’s life was nearing an end, while margins have been hurt by hefty development costs for Revolution.”

In lieu of the drop, the company slightly cut DS and GameCube forecasts for the full-year while raising Game Boy forecasts due to strong demand for the Game Boy Micro.

Many argue Nintendo to be the most profitable console manufacturer out of the big three, but hits like this can’t help. What could change this? They’ve got the portable market down to a science, but what does the company need to do on the console front to pose a threat to Sony and Microsoft?

[RedKing14CA]

Poor... Poor... Nintendo.... They just made a mistake with the DS...

I love nintendo, just because they were the best when i was growing up, even if they don't appeal to me now that im older... Lets just hope Nintendo isn't the next Sega... :(

and lets hope the revolution isn't the next Dream Cast... what they need for the revolution is a different controller... if the graphics are better than the game cube and they sell it for $150 they will alot.. but with the XBox 360 being 399 and the psp being 499... they'll have to sell it for $150-200...

the emulation thing sounds awsome though, they just need to keep the prices down on the games...

lets say 50 cents for the nes games, $1-2 for the snes games, and $3-5 for every N64 game... maybe $10 for Game Cube games..

the mistake would be 4.99 for nes games 9.99 for snes games 19.99 for n65 and the normal prices on game cube...

that would be the mistake!!!

[scrabbus]

Nothing like a bit of conjecture King? Not being overly critical but the figures nintendo released were only a drop in the ocean compared with the absolutely staggering losses posted by sony. Yet no one believes that they are in a bit of trouble after thier lates aquisitions. However the japanese markets believe sony is in deep trouble with the PSP, and already shareholders of sony corp shares are demanding a drastic price cutting strategy. Everyone expected Nintendo to post a loss, its hardly news really.