Wii Weekly Sales - How Long Before You Consider Ninty In Trouble?!!

[metalmonstar]

Ail said:

metalmonstar said:
Nintendo makes a profit on each console sold. Also Nintendo still gets a lot of third party support which is even more money for the company. Nintendo could stop selling completely and this would still be a good generation for them.

Personally though I would like to see Nintendo stay above 200K a week. I feel that it is under performing and Nintendo needs to stimulate growth.

It's a lot more complex than that.

General Motors makes a profit on every car sold too and they lost 30 billion$ last year...

Nintendo situation isn't the same at all, but unsold console sitting in warehouses do cost a lot.

General expectations would be that Nintendo didn't slow down production as they were forecasting 26 million Wii sold so now they have a lot of unsold consoles starting to pile up.

This is why a price cut is likely, it's cheaper in the end to cut the price and clean the inventories than sit on a huge pile of unsold consoles ( especially as console production costs tend to go down over time, you don't want to be selling the next two years consoles that were produced this year as producing them later on would have resulted in cheaper production costs for those consoles..)

Well if Nintendo has inventory issues then they were in trouble already. Let's not forget that having a couple thousand extra cars can cost billions while have a couple thousand extra wiis won't.

I doubt Nintendo has too many issues with inventory. Generally they are pretty conservative and tend to drop their predictions anyway. I am sure they see the trends and know not to make excess consoles. They probably won't release a prediction decrease for some time though due to not wanting to worry share holders.

 

Finally even if Nintendo failed to sell any consoles and remained stubborn about its shippment, they would at worse lose 6.5 billion dollars. If I remember the financial report that is about what they made last year. So they would be in the negatives but it wouldn't be that drastic. That is the most extreme case anyway. Profits will probably be down but I can't see them being in the red.