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'Pokémon Go' helps Nintendo break major stock market record
Nintendo continues to make headlines, all thanks to Pokémon Go. Now the video game giant had the biggest daily turnover of any company on the Tokyo stock market this past Friday, July 15th.
Nintendo consumes mushroom, stock grows over 7%
Nintendo has enjoyed a healthy bump in its stock price. Thanks to a weakening yen and an upswing in the US job market, the company's stock was up 7.38 percent as of the market closing on March 8, up to ¥10,330 ($110). Other Japanese companies, as GamesIndustry.biz notes, have also benefitted from the improving US economy and weakening yen, including Sony, Konami, Capcom and Namco Bandai.A weak exchange rate is good for Nintendo, as it improves the number of yen earned per US dollar spent on its products. The downward trend in yen value recently boosted Nintendo's financial outlook for its fiscal 2012, ending March 31, despite the company dramatically reducing its hardware sales target for the Wii U and 3DS.
Rumor: PS4 in Japan later this year, will cost more than $400
The PlayStation 4 – which is currently expected to be announced on February 20 – will be available later on this year in both Japan and the US and will carry a hefty price, according to a translation of a report found in respected Japanese newspaper Asahi Shimbun. The Japanese version, says the translated report, will cost "greater than 40,000 yen," which means it will be more than $400 there.Asahi adds there will be a rush to meet sales demands on both sides of the world, but the paper doesn't specify a US price; however, the PlayStation 3 launched at $500 when it came to North America, and cost 49,980 yen in Japan, around $535. So Asahi's report suggests that whatever the next generation PlayStation's price is, it will likely be slightly cheaper than the PS3 was at launch.There's also no mention of a European launch, and the PS3's launch was indeed delayed in Europe by hardware shortages. Hopefully, Sony will clear all this up on February 20.
Canon announces Q3 2012 results: operating profit down 42 percent to $908 million
Canon just released its Q3 2012 earnings reported, and things aren't looking peachy right now for the camera maker: revenue is down 13 percent to $10.3 billion from last Q3 last year, while profit tumbled by 42 percent. The Japanese company directed the blame toward the "negative impact of economic deterioration" in Europe and emerging markets like China, as well as the strong yen (again). DSLR sales fell over last year, with Canon mentioning that its launch of new models like the EOS 5D Mark III didn't help to shore its camera figures up. Other units within the company didn't fare much better, with printer sales falling and business-to-business numbers flatlining. The company doesn't see a bright fourth quarter either, and is projecting that sales will stay in lockstep with the sluggish economy, resulting in a 6 percent decline in operating profit for the year. It may not want to count so much on the new mirrorless offering pulling it out of the mud, though -- it got fairly mixed reviews.
Olympus hangs $57 million loss on austerity, strong yen and declining compact camera market
Olympus is reporting a $56.7 million loss for its first quarter of 2012. While its coveted medical imaging arm remains profitable, its life-science and industrial unit suffered thanks to corporate belt-tightening. Unsurprisingly, its low-end compact camera market is shrinking, but sales of its OM-D E-M5 ILC increased by 50 percent, offsetting some of the losses and reducing operating losses from $89 million last quarter to $19 million in this one. Like many of its Japanese rivals, it's also found a strong yen has stifled its return to productivity, a trend that isn't likely to change soon.
Nikon makes $201 million quarterly profit, nearly 50 percent drop from last year, blames strong yen
Nikon's odd financial calendar means that the camera maker is announcing its first quarter results for 2013. The confusingly-dated documents show that it isn't having the best Spring / Summer, since while it pulled in a net profit of $201 million, that figure is down nearly 50 percent on the $392 million it made in the same period last year. It sold a record number of interchangeable-lens cameras, lenses and a good number of compact cameras, but that was offset against the high cost of the yen. Its other businesses, Precision Equipment and Instruments both suffered thanks to Government spending cuts, a "harsh business climate" and the now age-old problem of the high exchange rate. It's expecting the situation to remain the same in the next three months, with booming camera sales weight against losses in its other businesses -- with a projected profit of $143 million anticipated in Q3.
Canon reports higher profits, lower net income in Q2, points finger at pricey yen
Canon's financial results for Q2 2012 reveal an operating profit 18 percent greater than the results from the same quarter last year. However, net income has dropped from 61.5 billion yen to 51.7 billion yen since last quarter. The company saw demand grow for its DSLRs, both professional and entry-level, while sales of point-and-shoots continued to contract. The ever-increasing value of the yen -- and weakened demand in Europe -- has put a dent in its important overseas sales -- and profits. Perhaps the promise of Canon's first mirrorless ILC later this year will be enough get wallets out in the euro zone.
Canon ditching humans, cameras hand-made by robots by 2015
Canon has announced that it'll ditch human production line employees and rely entirely on robots to build its cameras. Several Japanese companies have felt the pinch thanks to the soaring value of the yen and have acted quickly to move production overseas, but Canon has resisted doing the same. Company spokesperson Jan Misumi has said that the move won't cause job losses as those employees will be moved into other parts of the organization once the switchover has been completed -- which could be as early as 2015. Now we just need to check our diaries as to when the Robopocalypse is due to begin.
Sharp posts $1.4 billion extraordinary loss, refocuses on mobile displays
Sharp has reported an extraordinary loss of 117.1 billion yen ($1.4 billion) for the financial year ending March 2012. The company has cited restructuring costs and inventory losses as the causes for the write-down, but also projected that its TV business would lose a further 18.7 percent of its projected sales in the current year. The company has decided to convert some of its big-screen LCD production lines into mobile LCDs as it tries to reassert its dwindling display business. It's yet more bad news after the company sold part of its LCD manufacturing business to Hon Hai, Sony withdrew from a joint venture and refused to deal with Sharp in the future, plus an 86 percent collapse in profits.
Elpida files for bankruptcy protection as debts of $5.5 billion are revealed
DRAM Maker Elpida has petitioned for a corporate reorganization (the equivalent of Chapter 11 or Administration) as the company has revealed it is close to collapse. President Yukio Sakamoto is expected to resign as the scapegoat for the calamity as it files for protection at the Tokyo District Court. The company, founded in 1999 as NEC Hitachi Memory Inc. has produced DRAM Products since 2000. It founded three wholly-owned subsidiaries: Tera Probe, which conducted wafer probe testing, Akita Elpida Memory Inc. which handled the back-end processes of DRAM production and Rexchip Electronics Corp, which handled the front-end. After a blockbuster period of invention, a fall in prices and the global recession in 2006 forced the company to enter restructuring with a 30 billion Yen ($372.54 million) Government-backed loan. That swathe of cash was used to pump more money into investment and R&D, but the combination of strong Yen and the Thailand flooding has once again forced the company to come clean about its finances. It revealed today that it had debts of 448,033 million Yen, or $5.5 billion and without the protection of the court wouldn't last too much longer. Times of Japan points to the strength of Samsung's memory offerings as being a big contributor to Elpida's collapse, with president Sakamoto saying that DRAM is now as cheap as a "rice ball."
Sony posts $350 million loss in Q2 earnings report, forecasts full-year loss
Sony's Q2 earnings have just come in and, as you might guess, they're not particularly glowing. A few days after announcing plans to buy out Ericsson's stake in Sony Ericsson, the manufacturer posted a quarterly loss of ¥27 billion ($346 million) today, compared with a net income of ¥31.1 billion during the same quarter last year. Last quarter, the firm posted a net loss of ¥15.5 billion, or about $200 million. Sony attributed much of this decline to a stronger yen, lower TV sales and recent flooding in Thailand, which has disrupted its supply chain. On this basis, the company lowered its full year forecast, predicting a net loss of ¥90 billion ($1.2 billion), compared with a net profit of ¥60 billion that it had previously expected. It appears, then, that Sony's TV division is primed to post an annual loss for the 8th straight year, which would certainly explain those plans for a forthcoming shakeup. Find the full report at the source link, below.
Nintendo posts first half loss in earnings report, slashes forecast yet again
Nintendo's latest earnings report may be one of its most forgettable. The company posted a net loss of ¥70.27 billion ($923 million) this morning, in a report covering the first six months of the fiscal year ending on September 30th. That's significantly deeper than the ¥2.01 billion loss Nintendo posted during the same period last year, though Nintendo attributed the result, in part, to a strengthened yen and sagging demand for its 3DS console. Revenue, meanwhile, fell by 40.6 percent on the year, to ¥215.74 billion ($2.84 billion), as the manufacturer reported an operating loss of ¥57.34 billion. Things are looking so bleak, in fact, that Nintendo has decided to slash its financial projections yet again, predicting a net loss of ¥20 billion for the full year (ending in March 2012), compared with the ¥20 billion in profits it projected only in July. And, as Bloomberg notes, if these prognostications hold true, it would mark Nintendo's first annual loss in a full 30 years. Ouch. Check out the full report for yourself at the source link, below.
Sharp quits the PC business reminding us that Sharp still makes PCs
It's no secret that Japanese consumer electronics companies are having a tough time competing right now (damn Yen). Now Sharp becomes the latest casualty with the announcement that it will exit the cut-throat personal computer business to focus on market segments where it can be profitable. You know, like tablets, where Sharp hopes to have more success with its new Galapagos and related e-book, music, and video services.
Sony said to be outsourcing production of high-end LCDs, Foxconn and Wistron getting the nod
Potentially bad news this morning for fans of high-end Sony HDTVs. The company, still struggling with huge losses and desperate to find reasonable pricing for its exported TVs amid historically high values for the yen, is looking to outsource not only assembly but full panel production on many of its LCDs. According to the report, up to 80 percent of Sony's 2011 sets will be manufactured externally, with between 40 and 50 percent of those getting panels manufactured by Foxconn-affiliate CMI. Foxconn itself is said to be producing 18 million sets, while Wistron, the other major partner here, will stamp out Sony's Google TV. If true this will be the first time Sony has outsourced full production of its higher-end models to Taiwan. None of this has been confirmed by any of these players, so apply salt to taste, but the concepts certainly make sense, and recent production slowdowns at the company's massive new LCD production facility could be related. Naturally you're wondering whether this move to help Sony's bottom line will hurt quality, but since Sony just sold one of its major panel-production facilities to Foxconn last year maybe this isn't so much a change as it is keeping things the same.
PS3 and Bravia sales boost quarterly Sony profits above expectations
Earlier this summer, Sony closed another fiscal year of being in the red, but it's starting the 2010/11 ledger with its quill dipped firmly in the black inkwell. For the quarter ending June 30, the Japanese megacorp clocked up ¥25.7 billion ($293 million) in pure, unadulterated profit off the back of a ¥67 billion operating income. When you compare that to the performance this time last year, a ¥37 billion loss, you have to agree that the Stringer purse-tightening program seems to have delivered the desired effect. The primary drivers for the current resurgence are pinpointed as the PlayStation 3 and Bravia lines (frankly, we consider the two utterly inseparable), and Sony's feeling so buoyant about it all that it's revising its projection for the coming year's revenues upwards today. The good news is tempered, however, by the threat of a rising Yen, which has already claimed Nintendo's profits as its first victim.
Final Fantasy XIII sales plunge in Japan
According to unofficial sales numbers from Japan, Final Fantasy XIII has fallen down to number four on the sales list over there, after a very big million-plus release day and a record-breaking first week. But otaku take heart: even though sales of the game dropped over a million units in the second week, this wasn't unexpected. Final Fantasy games always tend to take a dip after the "day one purchase" audience gets their copies. The last iteration of the series took a 1.5 million unit hit in week two. But even with the lower sales, about 200,000 copies were traded for the appropriate cost in yen, which indicates Square Enix is likely still on track to meet or exceed its six million target worldwide. That's a lot of chocobos. %Gallery-41346%[Via Kotaku]
Strong Yen could see lack of Wii bargains this holiday season in U.S.
Analysts think that due to the continuing decline of the U.S. dollar and the 13-year high for the Japanese Yen, you won't be seeing too many hot deals on Nintendo's Wii this holiday season. With the Yen being so high, it drives up the cost of Japanese goods for U.S. retailers. And, seeing as how the U.S. economy has been in such bad shape all year, merchants have discounted their goods to offset that fall to a point where they can't afford to lower prices to attract customers any more.Wii Fit, one of the items analysts see as being a must-have this season, could be most affected. With the profit margin on it so small (same goes for the Wii console itself), retailers can't afford to cut prices. One positive thing to come out of this, however, is that the Euro has been on a decline, as well. This means that Nintendo should be shipping more to the U.S., whereas in the past, Nintendo focused on Europe first.%Gallery-23454%
Mabinogi hacked by a 16-year-old for $325K of virtual currency
A sixteen-year old boy allegedly hacked the website of Nexon Japan, and made off with about $325k worth of game points for Mabinogi, a free-to-play MMO that's inspired by Celtic mythology (and on its way to North America soon). He reportedly was able to obtain the password of a former Nexon employee, and then used that info to log on to the game servers and load himself up with virtual cash.Some of which apparently then turned into real cash, as he was able to sell it (as least that's what it seems like) for "web money," which he used to buy books and other software. The bottom line here seems to be not that the kid is a genius, but that the company and/or its employee made a dumb mistake, allowing the password to get nabbed by simple hacking software.No word on what punishment, if any, the kid faces, but Nexon claims they've "re-evaluated" their security software, and created a "24-hour monitoring system." Well that's good -- when they get hacked again, at least they'll be able to monitor it.
Nintendo shares jump to record high
Wall Street reacted favorably towards the House that Mario Built on Wednesday as Nintendo shares rose to a record high before closing up 2.7 percent at ¥64,800 ($555). The surge in stock price echoed Goldman Sachs' decision to cover Nintendo's stocks; the investment bank offered up a "buy" rating with a target share price of ¥71,000 ($609). In addition, and as if to brag, Nintendo raised its earnings expectations for the second time this business year to ¥370 billion, which amazingly is still well below analyst predictions of ¥415 billion. Nintendo can thank the continuing success of its Wii and Nintendo DS platforms as the drivers behind its most recent success story, while Goldman Sachs lays equal praise at the company's 'talent in creating new markets,' noting that this could bring Nintendo's stock into alignment with that of Apple. Seems reasonable enough to us. Nintendo's product's already look the part, why not go all in?
Nintendo officially bigger than Sony in Japan
After months of outselling Sony hardware in both North America and Japan, Nintendo has edged past the electronics giant in the one area that really matters to gamers: market capitalization! Reuters reports that Nintendo's Japanese shares have quadrupled in the past four years to a total value of 6.54 trillion yen ($52.76 billion), just ahead of Sony's 6.5 trillion yen ($52.44 billion) [update: fixed typo] market cap. That's a massive 0.6 percent lead!Before you trade in all those classic Pokémon cartridges for Nintendo stock, be aware that this sector of market is prone to swings. "This is one of those companies that is not exactly making daily necessities. One negative factor and shares could take a dive," Mizuho Securities analyst Takeshi Koyama told Reuters. And don't disregard Sony just because they're technically slightly smaller -- despite their troubles, Sony Corp. stock has risen 67 percent in the last two years, ten percent ahead of the the Nikkei average.Previously: Nintendo closing gap on Sony's market value
