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Dr.Grass said:
padib said:
Dr.Grass said:
KillerMan said:

I just don't know how they can make that much loss? That is PS3/X360 early day days level of loss. Yes exchange rate is pretty bad and they probably sell 3DS with slight loss but still they sell tons of Wiis and DSs with profit and they also still sell most 1st software with high profit margins. Could it be that R&D costs for Wii U are that high? I remember Sony losing tons of money even before PS3 launch because of high R&D costs for PS3.


I'm waiting for someone to answer this.

These have been mentioned before, but I'll add some of my own to the mix:

Japan Earthquake

R&D costs for 3DS and WiiU (hardware and software)

Manufacturing costs for WiiU dev kits

Exchange rates

Launch marketing campaigns for 3DS

Low 3DS software sales performance

Software development costs for yet unreleased games

No big hitters lately (the 25Mills of games like NSMB or Mario Kart) -> this is a big one that should be reversed very soon.

Huge moneyhats: MH for 3DS and Dragon Quest Wii

3DS selling at a loss

Low Wii sales hardware and software

 

It's hard to tell which one is the most considerable, and the main thing to keep in mind is that these compound... e.g. Expensive 3DS marketing + low 3DS software sales + low Yen exchange 

Point is that they seem to have lost a helluva lot of money even though;

Wii is still selling fantastically,

DS is still selling fantastically,

3DS is selling respectably.

If only a small amount of that is due to the tsunami, then I'm not sure how this is possible.


- Significant WiiU R&D

- Wii is not selling fantastically, and its profit margin will have shrunk considerably due to price cuts. 

- DS is selling quite well, but again, how big of a margin are they making on DS's?

- 3DS is most likely being sold at a loss

- I'd assume that Nintendo's marketing isn't boosting sales in proportion

- Tsunami and Exchange rates are significant

We'll get a much better picture in May when the Annual Report is out.