Analyst: Nintendo will lose US$ 1 billion because of shortage |
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According to the NPD Group's results for November, the Nintendo Wii sold 981,000 units for November, but analyst James Lin of MDB Capital Group observes that they "could easily sell double" that.
Lin also furthers that Nintendo could lose as much as US$ 1 billion this holiday season because of the shortage. That's a lot of Wiis that couldn't be sold to people who were willing to ring it up on the counter. (Lin's estimate does not include software sales.)
George Harrison, Nintendo of America's Senior VP of Marketing, commented that Nintendo didn't make any mistakes when they assessed the demand for the console but that they "do worry about not satisfying consumers and that they will drift to a competitorÂ’s system."
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Comments [refresh]
just blow out your a$$ they did not bring it to them sevles they are just a gaming console company they don' have big side company like sony and microsoft does and also one more thing blow it out your A$$
How can you loose profit you haven't earned?
I do understand that they could have sold more console and more games, but I think there result is way better than what they expected. If they had sold at normal rate, they would have had enough units for the holiday, but would have sell 1 billion $ less during the year... It's just perspective.
The best situation would of course be a big boosts in productions, but we all know that not only Nintendo must delivers, all their electronic suppliers has to do it as well, And they still can spit out more than 1,5 millions consoles everymonth, wich is a good production number.
And congrats for the Wii to have the same attach rate than the PS2 at the same lifespan (except it sold 2 times more consoles so they actually sold 2 times more games than the PS2 in the same period)
your right how can you lose money you haven't earned yet
Even if they could have gotten 3.5 million more Wiis on shelves it wouldn't equate to US $1 billion in sales.
If Wii shelves were stocked as they are supposed to be, as Sony and Microsoft shelves are, there's no way in hell they would sell at their current price tag of approximately $300.. They should be selling at $150. Meaning if not for this "shortage" they'd have to sell somewhere around 7 million more to get an additional billion dollars..
If they were obtainable, there wouldnt be crazed grandmothers and Jingle all the Wayers grabbing Wiis at the first sign of them, without so much as a glance at the price. Just last week my boss was lucky enough to grab a Wii at the local Best Buy.. last one in stock. When he got to the check out he was a bit shocked by the inevitable "That will be $300 and change please." To which he responded "That much? Wow.. oh well"
As long as the kids will be happy Christmas morning, parents will pay anything. And as long as their friends will be jealous.. kids want them..
That is Nintendo's strategy.
Ah yes mr sense you lose again.
they lose money because the people who would have bought a wii would have bought some other console, so it's not likely they'd buy a wii in the future so that's a customer whose money nintendo lost
$300 and change?
More than $300..
As in CDN $279(or more) + tax
@purple_cow - What you're saying, that is the only way Nintendo can lose money from this. Lost sales that went somewhere else.
However, there is ABSOLUTLY NO proof, or numbers that tell us "potential" Nintendo customers have decided to not buy ONE BILLION dollars worth of consoles and games and desided to buy 360 or PS3 instead AND never buy a Wii in the future. Whoa! James Lin KNOWS THE FUTURE!!!!!
In fact the REAL sales numbers prove the opposite.
I'm glad you cleared that up :) That would have been against Best Buys agreement with Nintendo to have sold over the sticker price which is $250 in the US.
Wow! James Lin is the new Captain Obvious!
What kind of imbecile does it take to realize that IF Nintendo could MAKE MORE units then they could SELL MORE units during a shortage THEN actualy REPORT IT???
Way to go James! Do you get paid for these ideas? How much? I want your no brainier job!
NEWS FLASH!!!!!!!!!! !
I "could" have been a multi-billionaire had I only been able to make a better OS then MS and Apple put together...... awe....too bad me....
Yup, I can make up this stuff all day long!
Good job James!
chill out ISOhaven. i wasn't picking a fight.
i agree that there's no absolute proof that nintendo will lose exactly one billion dollars worth of consoles. but there are ways to calculate that amount from past sales and trends.
that's what analysts do. that's how guys like michael pachter predicts how much revenue the companies will get or how much hardware will be sold in a month.
Who's fighting?
No, there is absolutely no way to use any numbers to tell how much Nintendo COULD HAVE made. This is where the phrase "Should of, Would of, Could of" was created.
You can make a best guess which is what analysts do and more times then not they are dead wrong.
An analysts job is to look at what they KNOW then GUESS based on what they THINK will happen based on their own personal experience. So the more experienced you are the better the educated guess.
However, at the end of the day it's still a guess and useless.
Example:
Analyst - I predict that Nintendo will sell X amount of consoles.
Reality - Nintendo sells Y amount of consoles.
Analyst - HEY LOOK EVERYONE! Nintendo failed!
People with half a brain - STFU Mr. analyst!
btw, we USED to use analysts to predict weather. Remember how useless that was???
analysts use past and current data to make their estimates, they don't make some random guess. their estimates aren't dead accurate but that's why they're called estimates.
it's an analysts job to give people who want to invest in the company an idea of what's going to happen to their stocks. they'll lose their jobs if they can't estimate fairly.
not everyone could do what they do. you're right, i could say any number i want to predict how much nintendo would lose, but that's nowhere near reality. but an analyst's estimates would, and that's why people like Lin exist.
No dude, you don't get it. That's NOT what this guy is doing.
What does anyone wanting to invest in Nintendo have to do with this guy GUESSING what Nintendo would have lost? As was mentioned you can't lose it unless you had it to begin with.
1. He can guesstimate what Nintendo's earnings COULD look like based on past information. That's something COMPLETELY different.
2. What this idiot is doing to trying to pull figures out his rear and pass it on as fact.
You can use past data to figure out what MIGHT happen. However, there is NO WAY IN HELL you can use past data PLUS data that doesn't exist and try to come up with fact. It doesn't work like that. There is a MAJOR missing piece of his puzzle that he 100% made up. Unless he spoke with every single person on the planet, he has NO CLUE how many people want a Wii and can't get one. Read the other messages in this blog. They all address that issue.
Like I said, THERE IS NO DATA that can tell anyone (not even remotely) what Nintendo COULD have brought in IF they where able to magically product units they (or anyone else) can't produce.
The comment, "Nintendo will lose US$ 1 billion because of shortage" is 100% BS.
Now if a supporting company backed out and took US$ 1 billion with them because of the shortage.....there ya go!
Not only that, but even the information he does have, he does nothing but crap with it. For example:
"James Lin of MDB Capital Group observes that they "could easily sell double" that."
Oh really? That easy eh? Who exactly is going to snap their fingers and produce these magic consoles? Nintendo is producing more consoles then the other guys. So how exactly is this idiot justifying his insinuation that Nintendo should be producing double?
You can't lose what you CAN'T HAVE.
Bottom line - BS!
Now, let's look at a REAL head line for this story:
"Nintendo could have grossed an EXTRA billion had they been able to magically product more consoles"
Wow, I hope James is proud of his brilliance!
Looks like somebody got up on the wrong side of the bed today! WOW!
Nintendo likely would have lost even more due to less demand if they hadn't faked this shortage.
is "THEORY" do you have any actul "FACTS" to support your so called "THEORY" Mister Uncommon Sense