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Dood, Nippon Ichi isn't looking too hot photo

This is just about as bad as a Prinny accidentally exploding right in the middle of your party.

Nippon Ichi's financial earnings were released, and it looks that the Japanese game company is running about as well as a peg-legged penguin. It seems that operating profit is  tdown 97.5 percent for the first nine months of this financial year. Their closing price was ¥36,200 on Friday. After the financials got out, it dropped ¥7,000 as many jumped ship. With that 20% drop, the JASDAQ froze the price. Yikes.

I love Nippon Ichi, so I hate to hear this. What's the deal? I hate to say it, but I'm thinking that they're going port and sequel crazy lately, and that's not resonating with Japanese fans as much as NI hoped it would. Here's to hoping that they pull out.

Nippon Ichi Software, This Can't Be Good (Part II) [Kotaku]


Continue reading: More NIS stories





34 comments | showing # 1 to 34
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Zeag's Avatar - Comment posted on 02/08/2010 10:08
Zeag
It's funny because I think the sequels and spin-offs were their only source of income. The Last Rebellion looked like one huge stinker and money hole...
Chronic Logic's Avatar - Comment posted on 02/08/2010 10:08
Chronic Logic
Time to sharpen the axe/pinkslip and behead/fire some employees.
lewness's Avatar - Comment posted on 02/08/2010 10:12
lewness
This is mighty disturbing, dood.
Monodi's Avatar - Comment posted on 02/08/2010 10:13
Monodi
Holy fuck, 97.5%?
Cyril's Avatar - Comment posted on 02/08/2010 10:17
Cyril
Like all other sites, you forget to mention the most important part:

NIS still made a profit. While their profit is down, they are still making money.
Handy's Avatar - Comment posted on 02/08/2010 10:21
Handy
I think I might be that remaining 2.5%, I bought Disgaea 3 a little while ago.
Gen Eric Gui's Avatar - Comment posted on 02/08/2010 10:21
Gen Eric Gui
Why are people so worked up over this? It's like not a single person has taken an Econ class in their lives. This drop in operating profits could mean almost -anything-, from them just buying new equipment during that time, to hiring more teams of workers, to Last Rebellion costing more money then they/we thought, to just about anything.

An "operating profit" is when you take out all expenses after the profits have been summed up. Yes, this COULD mean that they just didn't make as big of a profit as they did last fiscal year, but it could also mean any of the things I mentioned above, or more.

Stop having knee-jerk reaction to every little bit of news without having any of the side info, please.
Gen Eric Gui's Avatar - Comment posted on 02/08/2010 10:26
Gen Eric Gui
Cyril makes a point as well, they're still making a profit, which means all their bills are being paid and all their employees are still staying around. "Profit" in a business sense is what money you make over and above all your regular costs.

The fact that NIS is still even making a profit period is actually amazing given the state of the world's economy right now.
Monodi's Avatar - Comment posted on 02/08/2010 10:30
Monodi
Well I just hope it doesn't get absorbed...

especially by.. ugh... SquareEnix...
titopaul's Avatar - Comment posted on 02/08/2010 10:35
titopaul
I didn't even know they were a publicly trade company
Nic128's Avatar - Comment posted on 02/08/2010 10:36
Nic128
Not good, dood.
Zeag's Avatar - Comment posted on 02/08/2010 10:38
Zeag
Good point Cyril. And if they are doomed to get absorbed. At least let it be Koei Tecmo, so they'll have a RPG division as well to stand against Capcom, Namco Bandai, and Square Enix (Funny how three of those company names are merged compagnies)
matrixdude171's Avatar - Comment posted on 02/08/2010 10:38
matrixdude171
Really? I guess their consumer base is tired of being milked
Phantom Spaceman's Avatar - Comment posted on 02/08/2010 10:38
Phantom Spaceman
You mean marketing bizarre niche weeaboo games in the US isn't profitable?
Chronic Logic's Avatar - Comment posted on 02/08/2010 10:39
Chronic Logic
So they're only 2.5 percent away from breaking even?
Cyril's Avatar - Comment posted on 02/08/2010 10:41
Cyril
@Phantom Spaceman

This is not NISA, this is NIS(J).
HoodedMiracle's Avatar - Comment posted on 02/08/2010 10:43
HoodedMiracle
I sent you guys the news, dood! D:

Anyway, I dun want Prinnies to die! D:
silvain's Avatar - Comment posted on 02/08/2010 10:44
silvain
wow. That's a rough number to have to go to investors with.
Jechxior's Avatar - Comment posted on 02/08/2010 10:51
Jechxior
I hope they pull through somehow, I love the Disgaea games dood's.
Shin Oni's Avatar - Comment posted on 02/08/2010 10:56
Shin Oni
not surprised...but also wish it didn't happen like this.
Butternine's Avatar - Comment posted on 02/08/2010 11:15
Butternine
I sure hope they can stay afloat. That's one boat I don't want to see sink. :)
EdgyDude's Avatar - Comment posted on 02/08/2010 11:52
EdgyDude
This is what happens when you only release games on the Wii instead of- oh, nevermind.
manasteel88's Avatar - Comment posted on 02/08/2010 12:01
manasteel88
I actually think the opposite...there aren't enough ports. I'm a NIS fan and I have none of their big offerings for the PS3 on my 360.

The big issue is that Last Rebellion tanked in Japan. I don't think Trinity Universe is going to do that well either.
Tony Ponce's Avatar - Comment posted on 02/08/2010 12:45
Tony Ponce
@Gen Eric Gui

Their operating profit is down nearly 100%. They almost did NOT make a profit. Say I run a lemonade stand and make $100 a day. I start making the lemonade too bitter or I spend too much on the ingredients so that my profits drop to less than $3 a day. For all the work I do, does three bucks sound like I'm doing all right?
Cowboy TTop's Avatar - Comment posted on 02/08/2010 13:20
Cowboy TTop
Manastee has a point.

NIS could be making potentially much more money, if they got their games onto 360 or PS3. Focusing on PS2/PSP games is cool and safe enough, but they don't seem to be learning any new tricks beyond 2d style stuff. A recipe for disaster.

Oh well, we'll see soon enough.
lolipantsu's Avatar - Comment posted on 02/08/2010 13:27
lolipantsu
@Cowboy TTop

Then everyone would complain that they wouldn't pay for "next-gen" games that look like PS2 games, just like they did with Disgaea 3!
Takeshi's Avatar - Comment posted on 02/08/2010 15:01
Takeshi
Dood means Dead in Dutch. That would give a whole new meaning to the title.
Syn's Avatar - Comment posted on 02/08/2010 15:06
Syn
That sucks, but I haven't bought a NIS game yet this gen...I've played Disgaea 3 but I don't have a PS3 so it was only when I was at a friend's :(

Needs moar gaemz. Not PSP gaemz
necrozen's Avatar - Comment posted on 02/08/2010 15:25
necrozen
Gosh, I hope everything is ok with them. I really like their games.
Batthink's Avatar - Comment posted on 02/08/2010 16:14
Batthink
Hopefully Nippon Ichi will pull of this blip. I love Disgaea.
maverick535's Avatar - Comment posted on 02/08/2010 18:05
maverick535
Buy them, Atlus!
Gee-Man's Avatar - Comment posted on 02/08/2010 20:17
Gee-Man
Like I said on Japanator:

I hate to say it, but NIS relaly needs to step it up. No more remakes (as much as I love Disgaea 2 on the PSP) or half-assed PS2 assets. What they need to do is buckle down and make another cult hit. And while graphics aren't the most important thing, it's about time they start using HD 2D sprites and actually use the technology that's available to them.

NIS is one of my favorite devs and it sucks to see them doing badly, but when they're using PS2 sprites in a PS3 game, something needs to change.
Hopeless Savage's Avatar - Comment posted on 02/08/2010 22:30
Hopeless Savage
I blame the PSP.
Gen Eric Gui's Avatar - Comment posted on 02/09/2010 15:31
Gen Eric Gui
MegaStryke: But it's operating profit, which means that everyone in the company is still getting paid and they're still in the black. In your given analogy, whoever was making/selling the Lemonade was already getting paid a full-time wage and you had covered the costs of the ingredients, sidewalk rental(?), and building costs, and you were still making $3 over that. That's how operating profit works.

When NIS starts making a loss and they have to go into the red to pay their fees and salaries, that's when things become troublesome. And like I already pointed out, this doesn't mean that their actual profits were down as much as the article says, as they could have done any number of things (like purchase new equipment or computers, or hired on a bunch of new staff) to lower their operating profits.

Unless we take a very close look at their financial records, we have absolutely no context for this news and reacting to it is just jumping the gun.
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