Derived charts say Nintendo profited for 9 years |
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Justin of Gamerinvestments.com, a shareholder of both Sony and Nintendo, claims that Nintendo racked up more cash than Sony in last the console generation's "race." For the five years that Nintendo participated in the last generation's market grabbing, it garnered the most in operating income: approximately US$ 4.59 billion dollars.
Justin derived his figures from NPD data, a historically accurate rundown of exchange rate for the past years (listed on X-rates.com), conversion procedures of unlike fiscal years, and data only related to the game divisions of the conglomerate companies (Sony, Microsoft).
The calculations have also taken to account the time when the console race began.
If the charts do tell anything, it shows that even while the PlayStation 2 had a two year jump-start and lasted longer than four years, Nintendo managed to profit most out of the last console generation. And for businessmen, investors, and the game industry's top brass, the company who keeps on ticking is the same company that keeps on bringing the cha-ching.
Well, Nintendo definitely brings the cha-ching. And why wouldn't they? Business buffs pointed out that by spending less than US$ 15 on a Wii remote, they're shoveling in plenty of dough.Granted that the US$ 1.5 billion gap between Sony and Nintendo's operating incomes is ominously large, it only represents the difference in both company's EBIT (Earnings Before Interest and Taxes), however, and could result in different net earnings.
Also consider that there's still more years that the Sony PlayStation 2 continued to garner more customers, well into the years the next-generation console race began. Unfortunately, due to the parameters involved in determining when last generation's console race started, those years cannot be counted.
Now though Microsoft's operating income might be alarming for the same period (they did spend to overtake Nintendo's GameCube, as well as try to make the Xbox a household name for consoles for the next generation), take note that negatives are not rare after deducting operating expenses. Microsoft's gaming division is also a part of one (big-ass) machine at Redmond, and the company as a whole had more to profit elsewhere.
The status for the next-generation console race (arguably, the current generation console race now) stands at the following: Nintendo is leading in hardware install base by 24 million Wiis, while Microsoft is sitting on second place with 19 million Xbox 360s. Sony's PlayStation 3 finishes last at 12.85 million consoles cashed from the counter.
But who's going to earn the most from this generation? Fortune had the inkling before, and when it comes to business, the corporate magazine is probably right on the money. Head on over to the source provided below for an eye opener.
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Comments [refresh]
But he admits it's just a guess. An educated guess, but still a guess without actual evidence.
Its no secret that Nintendo's priority is its bottom line, but at what cost? Obviously rehashing the same 6 games generation after generation saves on dev costs. Manufacturing outdated hardware at outlandish mark ups ensures a profit no matter how far off the numbers are from the highest seller. Unfortunately, none of this helps us, the end user. It in fact works against us.
A high profit margin is proof of one sleasy business practice: Price gouging. Nintendo could afford to slash hardware prices for both the Wii and the DS right now, but they refuse to because there are enough stupid people out there paying a %100 markup on their merchandise.
Can't blame them, but they certainly deserve no praise.
Just admit that they are enjoying an unprecedented, hugely successful console war so far thanks to their business strategy.
Also, I suggest everyone read the source material (including you, Techni). Nobody can argue with that. It's unequivocal, black-and-white FACT. So anyone that wants to argue with the facts, don't even bother. You know who you are.
I don't care about the facts. I don't like Nintendo. They make so much money because their consoles and handheld consoles are cheap as hell.
All they do is rehash the same damn franchises. They never do anything new. It's ALWAYS Mario, Luigo, Super Smash Bros, Pokemon, Zelda, Mario Kart, etc. It's just 50 billion sequels and remakes, and all the little kids and girly girls just HAVE to buy them.
Then they realize (like me) how boring and lame it is. I highly regret buying my DS. Haven't played it in over a year...Haven't used it in all in a year. Does that make me a fanboy? No. I'm not denying anything. Everyone, even the hardcore Nintendo fanboys knows Nintendo never does anything new with their games. They just use random gimmicks to get people to buy things. Oh, Wii Fit? It was inevitable. All the Wii-centered games suck in my opinion. Give me thumbs down, idc. My opinion stands.
No, he doesn't.
Why do people flame Nintendo for using the same franchise over the years? and saying they aren't doing anything new? Umm I'm pretty sure the Wii was a completely original and new idea, until the PS3 decided to rip off the motion controls. Great games have come out for the wii, Mario Galaxy, Metroid Prime 3, Super Smash Bros., No More Heroes, Twilight Princess, the new BoomBlox. Although they do stick with their usual franchises they do go innovate on them constantly with new releases of them. I mean don't get me wrong, I have a 360 and a wii and soon a ps3 for MGS4 but seriously get over it. Nintendo obviously knew what they were doing when they get in on the console wars. I wonder why they've been the longest running console company?
...and what's wrong with sequels and remakes?
In order to keep a franchise alive, it's a hard job.
Look at Mortal Kombat, once it went to the 3D area
they lost their popularity as one of the best fighting
games of the time.
I still like Mortal Kombat Trilogy more than the new ones.
Well, I guess you must be a hater.
Sometimes there's got to be sequels to a lot of games,
people want to see more off a franchise.
Nintendo owns as much sequels as any third party
company like Capcom(Resident Evil 5).
Now, Sony and Microsoft are realizing that so they are
starting to produce their own sequels.
EX: Halo 3, God of War II(Latest is the psp version),
Ratchet and Clank, Killzone, etc.
Don't be a Nintendo hater or any other company hater.
"I don't care about the facts."
That's funny. Good luck in life bud!!!
Scarface is right. Nintendo had nailed it. Will 100% of the people like Nintendo's product? No. Who cares? Those that don't like it can shut up and move on with their life.
Facts are facts, Nintendo has a damn good solid product that the majority wants. Don't like it? Go suck an egg! No one cares.
I look forward to more Wii product to keep myself, family and friends in good spirits.
I agree, it makes no sense! Just because they bring out a sequel these guys starts crying and whining?
I was at two gamestops this weekend and on my first visit some guy was asking for Mario Kart Wii. He was told NO STOCK and good luck! That game was sold out company wide in the area. They unload stock the SAME DAY they get it. I confirmed with the second store.
Now, WTH is wrong with that? It's obviously a GOOD GAME and people want it.
The only thing Nintendo is at fault for is making games and making them FUN. Gee, what a horrible company!!!! How dare they!?!?!?!?!
The PS2 made more money than any other platform on earth, with more than 200 000 000 units sold, and more than X numbers of royalties gained, lol. (just think that everybody hated the ps2 and bought only one game... this makes already more than 200 000 000 of games sold, but I alone bought around 30 games for my ps2..., lol.)
Yes you are so stupid.....
It's fair enough that you don't like Nintendo. It's fair enough that you don't like the fact that they invent new franchises on a rare basis (I sort of agree with you there; I'd like new stuff but the sequels are simply too awesome usually). You haven't played your DS in a year? Whatever. But don't lower yourself to the same as the likes of 360 or PS3 fanboys and say "all the little kids and girly girls", as though they are the Wii-owning population, and in turn belittling and insulting a LOT of people (including me).
I totally agree with you about everything you said. The NDS has been out for what 3-4years and they haven't even bothered to lower the price. The Gamecube should have been the same pricepoint as the PS2 when last generation ended. I know that all three companies are money hungry bastards, but Nintendo stands out the most. BTW, I own a PAL Wii which of course is chipped, don't see the point in spending tons of money on last gen specs.
If you want to flame me go ahead, I don't care. Every hardcore gamer who doesn't play party games or casual games would agree with me on this. This being the Xbox 360 and PS3 demographic. Im tired of seeing the gaming community starting to go down the tube because a lot of developers are making casual games. Im really starting to miss last generation when hardcore gaming meant more.
Hold the phone, 200 mil? I dont think so. I know that at times I am a fanboy and would love to believe that number but sony has only sold around 120 million. Go to vgchartz to find the actual number, I was just rounding.
My thoughts exactly, Keith K. --This is just what hardcore gamers need right now: some guy making up 'close guesses' to try and figure out secret profit margins of the main gaming manufacturers, publishing it as 'fact', and making Nintendo look like the world's greatest investment. Even if they were/are: it still doesn't help US (the customers, the gamers) AT ALL. Year after year, the Big N has represented gouging, was caught at least once red-handed with trying to price-fix and artificially control market supply. Then, to top it all off, their great "innovation" is game after game of Mario-this and Mario-that. They are the virtual Disney of videogames: taking a tried-and-true iconic property and selling it 1,000,000 different ways from eternity. I'm sick and tired of all the (obviously-purchased, in my book) glowing reviews for Nintendo games. Some 3rd party risks their financial lives and homes on the line to produce some visually stunning, but maybe slightly un-tuned game .....it gets slammed. Meanwhile, "Zelda's Mario Kart Smash Bros 64 Wii Super Galaxy III" gets some fawning, gushing review for it's Atari 2600-class graphics. Nintendo deserves no praise, and I sure hope that either Sony or Nintendo are ACTUALLY making more profit, because the last thing any of us needs is for shareholders to clamor for Sony or Microsoft to stop innovating in the REAL next-generation of games.
To me, it just seems they just use the "Nintendo reuses franchises" arguement to state that they don't like Nintendo, then they say they aren't a fanboy/girl. Whatever. Really it's nothing new -- it's been done from pretty early on since the NES era.
Some sequels and remakes are good, some are bad, no matter what the console.
Just my thoughts.
I agree with you, Sony and Microsoft are the true next generation gaming consoles. Nintendo did use something different in there current gen (last gen tech) console but the technology has been around for many years. Try to invent something that hasn't been done before, like the high density Blu-Ray disc which holds up to 50gb, or the cell processor which can do an extrodinary number of calculations. Stanford and it's folding at home project is benefiting from the cell processor. Now that really doesn't have much to do with gaming but it is something new. Nintendo likes to use past technology and pass it off as new, with an outrageous price point. Nintendo probably wont cut the price until the end of this generation. They show signs of being the greediest company out of all three gaming giants.
There are actual stats available for viewing; Nintendo ARE making more money than Sony and Microsoft's gaming divisions. As for the "obviously-purchased" glowing reviews, pull your head out of your a$$. Nintendo developed games are usually of astounding quality, especially those "tried-and-true iconic property" titles that get sold "1,000,000 different ways" continuously. 3rd-party title get slammed if they are rubbish (Far Cry Vengeance), and praised (in much the same way as Nintendo games) if they are awesome (Red Steel).
Oh, and graphics don't make the console, to respond to your utterly idiotic comments on "Atari 2600-class" Wii graphics and the "REAL next-generation of games".
Get a grip.
"Facts are facts, Nintendo has a damn good solid product that the majority wants. Don't like it? Go suck an egg! No one cares."
The majority wants the Wii? My parents don't. My nieces and nephews don't. Any hardcore gamer I know certainly doesn't. Facts are facts and the BS isoretard always makes up doesn't fit in. Perhaps the majority of gamers in Japan do, but that's not a majority of the population.
"I look forward to more Wii product to keep myself, family and friends in good spirits."
HA HA HA! Complete tool! You just said you'd buy whatever ill-concieved product Nintendo tries to sell you! What a loser!
A shortage of mario kart Wii, imagine that. By isoretard's standards, that means it's the greatest game ever. No, Nintendo does that intentionally, like with most of their products. They must really have trouble burning discs and molding those stupid wii wheels.