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Viper1 said: 1) Take a product that generates $20 profit per sale. Sell 2 million and you get $40 million in profit. Now say the following year you only sell 1 million. Now profits are only $20 million. So even though sales are down by a lot, you still profit. As this relates to the point in hand, just because sales were down, that doesn't translate into losses by any means. It just means less profit than before. 2) Now the $794 million one time exchange charge could mean a few things sucha as Nintendo moving some of it's financial holdings from the Yen to the Dollar, an asset exchange involving the Yen and Dollar or any of several other things that basically involve the 2 currencies. They did the same thing in 2004 or 2005 and it marked the first quarterly loss in their 100 year history. This marks the second and it's for the same reason. |
1) I didn't mean to say that they lost on DS HW sales, I've implied that there're must be some unknown expenses (massive buyout or smth?) that weren't compensated by reduced profit made on HW/SW sales.
2) Well, that's what I thought just after I wrote my last post. It seems I just needed some clarification on English accounting terminology I'm unfamiliar with =) Thanks.
