Everyone paniking I wouldn't be too worried. Yes almost a billion USD is a tremendous loss and unacceptable but Sony lost a similar amount when it launched PS3. Not that we should be giving Nintendo credit for screwing up as bad as Sony did but they aren't in as bad as a position as Sony was. In the first whole year PS3 had been on the market Sony registered a 2.16 Billion dollar loss and in 2008 another 1.16 Billion USD loss. We all know Sony went on to return to profitability in 2010.
Now of course Sony could take those kinds of losses to a degree, can Nintendo? Yes Nintendo can in fact according to IGN Nintendo says they expect to have an operating loss of only 200-million at the end of the year. I'm not sure how that is possible considering they lost almost a billion dollars this quarter but 200-million for the year is not bad at all.
I expect the WiiU to bomb initially as well unless Nintendo prices the device at 250$ price range. It will likely fail to have the immediate success Wii did even if successful.
A huge reason for all these losses is the Yen is worth so freaking much against the US dollar right now. I wonder how they can deal with that?
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
