How can Nintendo remedy its biggest money drain?

[Joelcool7]

Train wreck said:
Nintendo is not in a position to be a hedger of currencies because:

And Nintendo business is deteriorating, if it wasn't, they would not be revising everything. That's not a currency problem. They should be worrying about how to get back to its mid wii days as opposed to trying to alter currencies to make their business look good.

Thanks for your input. Anybody else have any ideas how Nintendo could lessen the blow or find a way around the strong Yen?

Also yah if 80% of Nintendo's losses are attributed directly to the Yen then they are not doing as horrible as it looks. I wouldn't say they aren't deteriorating because we all know they are. But 3DS has now sold more then the origional DS did at this same point in time during its life span. Hardware sales are way up, the problem is the hardware is selling at a loss but Nintendo has stated that they aren't losing much on every unit. A major other reason is while hardware sales are threw the roof software sales are dropping. Without software sales to make up for the hardware loss Nintendo is going to lose money.

But market share wise and Nintendo's ability to sell there products appears to be back on track. The loss of money on each unit was necessary to bring 3DS in line with DS. The lack of software sales is also not entirely Nintendo's fault, third parties were supposed to continue launching software on a regular basis during this time frame. But third parties got scared and jumped ship (I'm talking about you UbiSoft) this wasn't Nintendo's fault entirely.

In the end I don't doubt Nintendo is trying really hard to lower costs and regain profitability. I also don't think they can be held responsible for most of their losses. 80% of those losses had nothing to do with Nintendo's performance, there is nothing Nintendo could have done to prevent these losses. Then I'd suspect about another 5-7% at least is due to 3rd party publishers and their in ability to sell software, with the 3DS numbers there is no reason that these publishers should not be releasing new great software every month. Then the remaining 13-15% is soully Nintendo's fault.

But judging from the numbers I am fairly optimistic. I mean PS3 lost Sony over 2-billion dollars in its first year on the market 2007. If Nintendo only loses 200-mill launch year I'd say they are not in trouble at all, I suspect next year 3DS will become profitable and WiiU will lose Nintendo some money. But I'd fully expect Nintendo to turn everything around by 2013 if the Yen doesn't continue to grow this fast!