Quick Jump Daily Digest

Thank you for your interest in the Quick Jump Daily Digest. Get notified of all new content on QJ in our free Daily Digest. To subscribe, enter your email address below and click the subscribe button.

Cancel and Return to page

Analyst: Nintendo will lose US$ 1 billion because of shortage

Posted Dec 14, 2007 at 4:29AM EST by QJ Staff

Listed in: Wii Tags: George Harrison, Howard Stringer, Nintendo of America, NPD

Nintendo - Image 1

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."

Via Next Generation

80% of voters think this story ROCKS!

Vote Now!

(4)

(1)

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)

# thats a very good point — demondirk 2007-12-14 06:00

your right how can you lose money you haven't earned yet

# Not true — Keith K 2007-12-14 06:04

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.

# MCS — The Obsidian 2007-12-14 06:07

Ah yes mr sense you lose again.

# they lose money — purple_cow 2007-12-14 06:30

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

# ? — Billie 2007-12-14 06:53

$300 and change?

# As in.. — Keith K 2007-12-14 07:02

More than $300..

As in CDN $279(or more) + tax

# WTF!?!?!?!?! — ISOHaven 2007-12-14 07:25

@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.

# WTF!?!?!?!?! — ISOHaven 2007-12-14 07:29

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.

# WTF!?!?!?!?! — ISOHaven 2007-12-14 07:33

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 — purple_cow 2007-12-14 08:13

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.

# WTF!?!?!?!?! — ISOHaven 2007-12-14 08:49

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???

# re — purple_cow 2007-12-14 09:14

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.

# WTF!?!?!?!?! — ISOHaven 2007-12-14 11:10

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!

# the key word there — demondirk 2007-12-16 04:15

is "THEORY" do you have any actul "FACTS" to support your so called "THEORY" Mister Uncommon Sense

Refresh comments list

Add comment

JComments

HOT GAMING NEWS | LATEST GAMING SEARCHES | FORUMS

QUICK JUMP DAILY DIGEST

Welcome to QJ.Net!

If you want your comments to go live without waiting for moderation, you need to be logged in. Being logged in has its benefits:

Logged in members do not wait for their comments to be approved.
Logged in members can create Profiles to be seen by other users.

So why wait? Create an account or login now! It's easy, quick, and free.

To get started, use the LOGIN boxes, or the REGISTER link below!

Want to learn more about the team who brings you the QJ news?

Read about them now!

HOT FLASH GAMES

QJ.NET Categories
• Apple • E3 • Featured Articles • Gadgets • Games for Windows • iPad • iPhone • MMORPG • Mobile • News • Nintendo 3DS • Nintendo DS • Opinions & Analysis	• Photography • PlayStation 3 • PoV • PS Vita • PSP • Rumors • Science • Site News • Tabula Rasa • Wii • Wii U • World of Warcraft • Xbox 360

Sitemap

Newest Downloads

05/22/2012 - 05/30/2012

XeBuild GUI 2.061	05/30/2012
edicpopDS v0.3.01	05/29/2012
RGLoader 0v290 Beta	05/27/2012
WiiMod 3.2	05/27/2012
WiiMC v1.2.7	05/25/2012
True Blue Firmeware v2.7	05/24/2012
3DS Video Converter v2.3	05/24/2012
Mobile Assault 1.8.2	05/24/2012
PSP Tools Alpha 0.1	05/22/2012
Newton War	05/22/2012
DaedalusX64 r766	05/22/2012
PSPMarble	05/22/2012
The Undead 4 - Nazi Zombies	05/21/2012
3DSExplorer v1.2.1	05/21/2012
J-Runner v0.2 Beta 275	05/19/2012

Most Comments this Month
Sound Off: On Game Expirat..	(58)
Say Goodbye to the Xbox 36..	(31)
EA Blames iOS Rock Band Ex..	(28)
Flash0 Contents Of Vita's..	(27)
Sony Had a Rough Year; Vit..	(26)
PlayStation 3: Now Featuri..	(23)
Sound Off: Toughest Game C..	(20)
Apparently You Can Pre-Ord..	(19)
Love It or Hate It, It's A..	(16)
PoV: This Collectors Editi..	(15)
You've Been Up in Arms Abo..	(15)
Pre-Order Generic Shooter..	(15)
PoV: Paid MMOs are Dead	(14)
Metal Gear Solid For Vita..	(14)
PoV: You Are Wrong about C..	(14)
Get Off Xbox Live, You Ped..	(14)
This is Next Gen?	(14)
Stop Your Whining, Start C..	(13)
PSP Is Back, Whiter, Cheap..	(13)
Pokemon Liquid Crystal! K..	(12)
OK, So Maybe Microsoft Can..	(12)
Does Microsoft Ever Have a..	(12)
Operation Raccoon City Pro..	(12)
Diablo III Getting Mauled..	(12)
Update: EA Drops Free BF3..	(11)

Top Jumps this Month
Naruto Shippuden: Ul..	(171)
Pokemon Liquid Cryst..	(104)
neur0n Knocks Out An..	(103)
Bust Out Your PSP Fo..	(91)
PSP homebrew - LameC..	(72)
Wii homebrew - WAD M..	(54)
PSP Comics Reader v2..	(53)
PSP Homebrew: 6.xx P..	(44)
Hellcat Working On R..	(41)
PSP Homebrew - PSPDi..	(41)
PSP homebrew - DSonP..	(38)
neur0n Gives You Mor..	(37)
Sound Off: On Game E..	(36)
PSP GBA v1.2: Gamebo..	(33)
Latest Left 4 Dead 2..	(31)
Another CFW Goodie F..	(30)
Soywiz Releases PSP..	(30)
GTA IV patch 1.0.6.0..	(29)
Download full Sid Me..	(28)
Sound Off: Should Ap..	(28)
Homebrew - PSP/PS3 P..	(26)
PSP homebrew - Mario..	(23)
DS homebrew game - S..	(21)
Brian Lara Internati..	(21)
Metal Gear Solid For..	(21)

HOT GAMING NEWS TOPICS

Quick Jump Daily Digest

Analyst: Nintendo will lose US$ 1 billion because of shortage

Related Stories:

Comments

Add comment

Newest Downloads