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Rayman Origins is actually profitable for Ubisoft
Rayman Origins has been profitable for publisher Ubisoft and the company feels the title will be an evergreen success. Although the publisher didn't share sales figures or what the budget was for the title on today's investor call, Rayman Origins' apparent lack of sales success didn't make it a complete financial failure."Two successes more than compensated for the performance of Rayman: Origins, Tintin and the non-dance Kinect titles," said Alain Martinez, chief financial officer for Ubisoft on today's call. "We believe Rayman: Origins, which is rated 89 percent on Metacritic with enthusiast reviews and is already profitable, has the capacity to become a long-term seller for the company."Rayman Origins, which has been a critical darling for combining classic platforming with lush visuals, is currently in process of being ported to every platform in existence. We keep hope alive for a sequel some day, but we'd be just as happy if UbiArt was widely available for indie designers to utilize.
Konami net income up 77 percent year-over-year
We're still a couple of months away from the end of fiscal 2012, but the first 9 months of the confusingly offset financial season have treated Konami extremely well: The company reports a 77.3 percent year-over-year increase in net income over fiscal 2011, earning profits of ¥17.05 billion ($224 million) for the period.Most of that, however, was pushed by Konami's social networking devision, which operates mobile/casual games in Japanese markets and posted revenues of $348 million, up from $127 million over the same period last year. The company's "consumer games" segment fell year-over-year, from $698 million in fiscal 2011 to $465 million in fiscal 2012. Konami has also adjusted its predictions for the end fiscal 2012, anticipating overall revenue at $3.38 billion and net income at $298 million.
THQ reveals $56 million loss in Q3
THQ CEO Brian Farrell started yesterday's third quarter earnings call with investors by saying, "On our last call we told you we anticipated that our third quarter would be the largest in our company's history. Unfortunately, we were wrong."The company announced a $56 million loss for the quarter ending December 31, 2011, nearly triple the loss of the same period last year. Sales also slumped slightly from $314.6 million to $305.4 millionDespite the success of Saints Row: The Third and WWE '12, the discontinued uDraw tablet took a majority of blame for the company's ill condition."Revenues were lower by about $100 million," Farrell explained. "We've got 1.4 million [uDraw units] still in inventory we haven't sold that we planned on selling." He estimated about $80 million of the lost revenue was from units the company didn't sell, and the other $20 million was from lowering the price of what they did sell. He concluded on the topic, "We would have doubled the profitability in the quarter were it not for uDraw."THQ is currently attempting to make itself a leaner, more efficient entity. Part of its announced realignment includes pay cuts for the top brass, layoffs of 240 people and seeking help for big-ticket items like the Warhammer 40K MMO. The company didn't provide estimates for its expected financial condition for the final quarter of the year.
Nikon posts Q3 2011 earnings, sees significant losses due to Thailand floods
Nikon posted its Q3 earnings report this morning, and there isn't a whole lot to smile about. The cameramaker had to swallow a one-off loss of ¥10.9 billion last quarter (approximately $143.1 million), due to widespread flooding that devastated its Thailand manufacturing plant, in October. Today's report comes just a day after Sony issued similarly dire figures, which it largely attributed to last year's flooding, as well. For the third quarter ended December 31st, Nikon posted a ¥3.7 billion loss (about $48.6 million), compared with the ¥9.7 billion ($127.3 million) it saw in net profits over the same period in 2010. Operating profits also fell to ¥8.2 billion from ¥18.6 billion in 2010, while total revenue dropped from ¥253.8 billion in Q3 2010 to ¥215.4 billion, last quarter. The company remains optimistic about the future, though, forecasting net gains of ¥55 billion this year, coupled with an expected revenue of ¥925 billion. For the full report, check out the source links below.
Take-Two Q3 financials down year-over-year, still within predictions
Take-Two Interactive has released its financial figures for the third quarter of fiscal 2012, which ended on December 31, 2011. While "in line" with the publisher's predictions, results are down when compared year-over-year to the same period in fiscal 2011.During Q3 2012, Take-Two's net revenue of $236.3 million was $97.7 million less than its net revenue of $334.3 million in Q3 2011. Operational income for the period was $14.2 million, down $22.6 million from the same quarter last fiscal year. Take-Two attributes this disparity to the fact that fiscal 2011 benefitted from the launch of Red Dead Redemption and its Undead Nightmare DLC more so than fiscal 2012 was able to.When looking at the entirety of Take-Two's fiscal 2012 performance so far, the downward year-over-year trend continues with an overall net revenue of $677.7 million (compared to 2011's $954.6 million), and an operating loss of $76.2 million (compared to 2011's operating income of $76.2 million).The company has also adjusted its outlook on Q4 in response to moving Max Payne 3's release date into the first quarter of fiscal 2013. It now expects net revenue for the period ending on March 31, 2012 to land between $112 million and $162 million, with its prediction for all of 2012 adjusted accordingly to a range of $790 million to $840 million.
THQ no longer manufacturing uDraw hardware
THQ will no longer manufacture uDraw hardware, according to its fiscal 2012 third quarter financial report. "Sales of the uDraw GameTablet and related software, and other titles in the kids, family and casual category were far weaker than anticipated, substantially reducing our financial results for the quarter," reported THQ president and CEO Brian Farrell.The uDraw is seemingly out of picture at this point, as the publisher "has no future commitments or plans to manufacture uDraw hardware." The Wii version of the tablet proved to be a success for THQ in 2010, leading the company to produce versions for the Xbox 360 and PlayStation 3. Sales of uDraw on Sony and Microsoft's platforms were underwhelming, however, leading the company to lower financial forecasts at the end of 2011.THQ now plans to focus on "premium core and fighting franchises." The report doesn't specify whether or not THQ will continue to produce software for uDraw, though it seems unlikely given the transition away from children's products. Unless someone is working on a Saints Row art game, of course.
Sony plans on $2.9 billion loss for the year
When Kaz Hirai takes over as CEO of Sony on April 1st, he's going to have to roll up the sleeves of his $10,000 suit and get in a good cry before figuring out the future of the struggling giant. The company announced a loss of ¥159 billion ($2.1B) for the third quarter ending December 31, 2011, with an expected loss of ¥220 billion ($2.9B) for the year. We imagine every meeting between Hirai and outgoing CEO Howard Stringer begins with a sarcastic "Thanks, buddy!"The consumer products and services division, which includes TVs and PlayStation, had an operating loss of over a billion dollars with sales down 24 percent from the same period.This is likely due more to the declining sales of Sony's TVs, video cameras and PCs, than it is of the PlayStation brand. PS3 sales are staying level with last year, with the company expecting to sell 14 million units or hardware and 148 million units of software. Vita sales were not specified at all, though PSP and PS2 sales were -- and the PSP data is declining, which means the Vita debut wasn't hidden in there.
EA sees $205 million net loss in Q3, rise in social-games users
EA recorded a net loss of $205 million, but its highest operating cash flow in 31 quarters for the fiscal third quarter ending December 31, 2011. In Q3 2011, EA generated $1.06 billion in net revenue, which is up from the previous Q3, with a net revenue of $1.05 billion. EA's cash flow from operations is recorded at $475 million.EA's Battlefield 3 and FIFA 12 have each sold more than 10 million units, while Madden 12 sold almost 5 million. PopCap, which EA acquired in August, grew revenue 30 percent on a trailing 12-month basis, and its monthly active users for social games rose to 52 million, up from 39 million the previous year.
EA was No. 1 game publisher on App Store in December, mobile revenue up over last year
EA's continuing efforts in the mobile space are paying off. Thanks to a ridiculous sale in December, the publisher managed to best all competitors and become the top publisher in the App Store throughout December. The Sims: FreePlay was the top-grossing iPad app.The news comes from the company's third quarter fiscal year earnings report, which shows a substantial increase in gains and registered users throughout its digital products compared to the same period last year. In the period ending December 31, 2010, EA Mobile earned $59 million, while earnings at the end of December 2011 were up to $70 million.
Nintendo: 3DS sales prove there's still room for dedicated gaming handhelds
Nintendo President Satoru Iwata believes the company has proven there's still a market for dedicated gaming handheld hardware like the 3DS. In a briefing -- which covered a lot of ground -- Iwata revealed the pictured chart above, comparing internal Nintendo weekly sales data of the Wii, DS and 3DS. The executive said the initial sales pace of the 3DS was "unsatisfactory," but the device gained momentum after the price cut and the launch of popular games like Super Mario 3D Land, Mario Kart 7 (and Monster Hunter 3 (Tri) G in Japan)."Last summer, when the sales pace of the Nintendo 3DS was slow, there were extreme remarks saying, 'With the penetration of smartphones, will there still be a market for handheld hardware?,' which was almost equal to 'Handheld hardware is not necessary anymore,'" Iwata said. "I believe we proved that such opinions are incorrect."In the end, however, Nintendo did not reach its internal sales goal for the device, despite the 3DS gaining momentum and ending the year with a respectable 15 million unit sales. Iwata says the company could not cover the lack of units sold pre-price drop, which is one of the reasons for its negatively revised financial forecasts.
Logitech's Q3 2012 report confirms Revue is sold out, Harmony remote refresh 'in the coming months'
Logitech's Q3 earnings for the 2012 fiscal year don't have many surprises since the company already revealed it was dropping out of the Google TV team. In prepared remarks, company management confirmed it is completely sold out of new units, closing the door on any users still trying to nab a $99 Revue (who shouldn't be too heartbroken, since Vizio is promising a second gen unit is on the way at the same price). There is promise however, if you're looking for a new Harmony remote model, while interim CEO Guerrino De Luca says the company is late in providing a successor to the best selling Harmony One and other models, resulting in a 30 percent drop in sales, it plans to strengthen the lineup "in the coming months." In other segments, it's seeing growth in those iPad accessory keyboards, for more details check the press release embedded after the break or in the PDFs linked below.
Nintendo enhances expected loss; 15 million 3DS units sold since launch
Nintendo has once again revised its expected loss for the fiscal year ending in March, widening its forecasted financial misfortune from ¥20 billion ($258M) to ¥65 billion ($839M). The increased loss comes a quarter after Nintendo switched its forecast from a ¥20 billion profit to loss.For the first nine months of the fiscal year ending December 31, Nintendo had sales of ¥556 billion ($7.2B), a 31 percent decrease from the same period last year. Overall, it posted a loss of ¥48.4 billion ($620M)."Nintendo 3DS hardware during the nine months ended December 31, 2011, were 11.43 million units, and the total worldwide sales since its launch exceeded 15 million units," the company stated. Both Super Mario 3D Land and Mario Kart 7 have gone on to become million-selling titles.The company also mentioned that The Legend of Zelda: Skyward Sword for Wii recorded "strong sales, especially in the United States." Worldwide Wii sales over the nine-month period hit 8.96 million units, with software selling 89 million units.Nintendo's financial woes, coupled with mobile gaming's increased portion of the handheld market, are not sitting well with investors. The House of Mario continues to see its stock sitting at a five-year low.
Ubisoft sales up in Q3, year-end forecast raised
Ubisoft estimates sales reached €650 million ($831M), up 8% from the same period last year, during its third fiscal quarter spanning the holiday months. At the same time, Ubi revised its estimate for the full fiscal year, ending in March, to between €1.05 and €1.08 billion ($1.34-$1.38B), elevating its lower estimate from €1.04 billion. "In continuation of the robust trends recorded for the first half of the fiscal year, Ubisoft reported record-high sales for the Christmas period, exceeding expectations. Against an extremely competitive backdrop," said CEO Yves Guillemot. "Assassin's Creed Revelations posted a solid performance, in line with our forecasts, and Just Dance generated outstanding sales." Since Ubisoft is a French company, which often separate their sales data from profit/loss details, the company will publish its "definitive sales figure for the third quarter" on February 15. By that point, the Just Dance franchise will have sold another several million copies.
RIM reports Q3 2011 earnings: $5.2b revenue, $265m net income and 14.1 million handsets shipped
News out of Waterloo isn't all bad today, as Research in Motion has revealed its financial results for the third quarter of 2011. While the company previously had to scale back its earlier earnings projections of $5.6 billion in the quarter, it's apparent the firm came close to meeting that mark. After close of the markets today, RIM reported $5.2 billion in revenue with $265 million in net income and 14.1 million handsets shipped. The company was only able to eke out 150,000 PlayBook tablets during this time frame, however, which no doubt contributed to these reduced numbers. Unfortunately, the market hasn't taken so kindly to the revelation, as RIM's stock has fallen seven-percent in after hours trading. In a small bit of positive news, the firm reports that its subscriber count is up 35-percent year-over-year, which now totals 75 million subscribers. Looking forward, the company expects to bring in between $4.6 and $4.9 billion in revenue for the next quarter, where it hopes to ship between 11 and 12 million units. Co-CEO Jim Balsillie referred to the last few quarters as among the most trying in the company's history, and promised to re-evaluate RIM's product portfolio, R&D strategy and to "leave no stone unturned" as it seeks to regain prominence in the smartphone world. Meanwhile, co-CEO Mike Lazaridis reaffirmed the commitment to the PlayBook OS 2.0, which remains on track for a February launch. As for the QNX-based BlackBerry 10 smartphones that we've been looking forward to, Lazaridis said to not expect anything until late 2012. Apparently, its availability will be hampered by a critical chipset supply that's not expected to become available until mid-next year. In other words, unless consumers develop a love for BlackBerry 7 OS real quick, 2012 may sadly be another ugly year for the folks in Waterloo.
THQ lays off 30 Play THQ employees
The business world, like the rest of the world, is a cruel and unforgiving mistress. Following the "weaker than expected" sales figures achieved by THQ's uDraw tablet during the third quarter of the 2012 fiscal year, THQ has let go 30 members of its Play THQ team; the Agoura Hills unit responsible for uDraw. "We are taking a difficult but important step to reduce the number of employees that supported this brand," a THQ representative said in a statement to Game Informer. "30 people will be leaving the company and business unit leader Martin Good will also be leaving to pursue new opportunities outside the company." THQ is still hopeful that the success of Saints Row: The Third and WWE '12 will pull out a fourth quarter turnaround before the end of fiscal 2012.
uDraw hasn't fared so well on Xbox 360 and PS3, THQ lowers its forecast
THQ has lowered its earnings forecast for the third quarter of the 2012 fiscal year, citing underwhelming sales of its recently multiplatform uDraw tablet. THQ CEO Brian Farrell explained in a press release, "Despite uDraw's strong success on the Wii in fiscal 2011 and market research indicating strong demand for uDraw on Xbox 360 and PlayStation 3, initial sales of our uDraw tablet and software on these high-definition platforms have been weaker than expected." As a result, the company is lowering its original sales guidance of between $510 million and $550 million by "approximately 25 percent," which is a large number of millions (at least $127.5 million). We'll know how poorly the device did when third quarter results drop next February. Until then, Farrell assures investors that "WWE '12 and Saints Row: The Third are expected to perform at or better than the levels we discussed on our fiscal 2012 second quarter earnings call." We guess folks are just more into simulated violence and genuine bonersword violence than they're into drawing things with their kids.
After strong Q3 showing, HTC sees nearly 20 percent drop in November revenue
All was looking rosy for HTC at the end of October, when the company released yet another stellar Q3 earnings report. Since then, however, things have apparently gone downhill in a pretty drastic way, as evidenced by an unaudited revenue report for the month of November. In an announcement issued today, the manufacturer confirmed that it saw about 31 billion Taiwanese dollars ($1.03 billion) in consolidated revenue last month, down 19.6 percent from November 2010, when it raked in some 38.5 billion Taiwanese dollars (about $1.27 billion). HTC didn't offer an explanation for the drop, though an earlier Q4 earnings forecast predicted that the company's impressive streak of robust earnings reports would soon come to an end. It remains to be seen whether December treats the company more gently, but for now, you can check out the full financial breakdown at the source link, below.
World of Warcraft is doing quite well in China, thank you very much
Earlier this month we heard the news that World of Warcraft's subscriber base took yet another substantial hit, although Blizzard was quick to say that most of these losses were coming from eastern countries like China. It's odd then that we've just received word that World of Warcraft is on the rise in China following an extremely profitable third quarter. NetEase, which operates World of Warcraft in the region, announced that its Q3 earnings were actually up over the same time last year. Both revenues and profits for WoW in China are on the upswing, marking a 39.8% increase year-over-year. NetEase said that it pulled in $308.3 million in revenues, out of which $128.2 million is pure profit. Subscriber hit or no, WoW continues to be a major force in the Asian market, and with numbers like these it's hard to imagine it going away any time soon.
Dell reports Q3 earnings, enterprise division rakes in record $4.7 billion
Dell's PC business may be on the decline, in fact its consumer division saw revenues drop 6 percent, but its business business is making up for it. The company's enterprise solutions and services unit took in a record $4.7 billion in revenue this quarter, a jump of 8 percent over the same time last year. The same department also saw operating income climb 12 percent in the same period. All told, Dell took in $15.4 billion in the third quarter, which is about the same as a year or go -- give or take a few million bucks. However profits were up 12 percent over last year to $983 million. So while there doesn't seem to be a huge influx of new cash coming in, it does appear that Dell is managing what it has just fine. Check out the full report after the break.
Gartner's Q3 2011 smartphone figures: Samsung on top globally, Android tops 50 percent share
Yahtzee! Now that Canalys, IDC and Strategy Analytics have had their turn, it's Gartner's go to serve up its summary of the smartphone world as seen in Q3 2011. Perhaps unsurprisingly, the headlines aren't changing much, with Samsung becoming the number one smartphone manufacturer worldwide with sales reaching 24 million, and Android's quarterly market share inching over 50 percent to best iOS, BlackBerry OS, etc. We also (re)learned that Apple shipped 17 million iPhones in the quarter, which represents an annual uptick of 21 percent, but a 3 percent drop from Q2 2011 due to the looming iPhone 4S release; predictably, Gartner's predicting that Apple's Q4 2011 will be its strongest yet with the 4S on the market. Breaking the operating system share a bit, we found that Symbian is (strangely) still being included, and that Android managed to soar from 25.3 percent in Q3 2010 to 52.5 percent today. iOS actually lost a bit of ground (16.6 percent a year ago compared to 15 percent today), but in fairness, so did BlackBerry OS and Bada. Curious about Microsoft? It's claiming just 1.5 percent of the worldwide pie, a fairly precipitous drop from the 2.7 percent it had a year ago. Far more fun facts and figures await you after the break.