Nintendo Q1 - $221m loss on of revenue $1.08bn. Shipments: 1.86m 3DS, 710k Wii, 540k DS

[gumby_trucker]

kowenicki said:

You arent alone.  I've only be saying this for the last 2 to 3 years.... The YEN is absolutely slaughtering the Japanese exporters, couple that with reduced demand on top of a global recession that is hitting Europe really hard and you have a nightmare scenario.

I remember starting a thread about 3 years ago where I said (to paraphrase) "How can Sony afford to give a price cut in Europe when they already have?", basically the premise being that the yen had strengthened a great deal and that Sony had swallowed this (not increasing prices - as they arguably should have done) and therefore had given a price cut without giving a price cut... make sense? 

I think I understand the implications of a strong Yen, and I imagine the weakened dollar and financial instability in Europe are only aggravating the situation.

I remember this used to be an issue for Nintendo in the GC generation as well, granted to a much smaller extent.

Maybe this is a stupid question, but is it possible NoA and NoE are holding on to some of the income instead of transferring to Japan becuase NCL is waiting for a more favorable exchange rate? That would decrease NCL's cash flow and may account for the massive decline in savings.

I haven't done any exact math, but 3DS alone can't be contributing more than 1 billion dollars to the loss...

 

edit:

Kresnik said:

What has caused that?  3DS price cut, slow Wii sales & exchange rate?  Quite a significant loss of reserves.

edit: I suppose Wii-U R&D as well.

Wii-U manufacturing is probably more appropriate. This may be the answer to my question as well.