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

[gumby_trucker]

Kynes said:

That number is changes in the exchange rate to what they predicted, if I'm not wrong, so if they predicted for the year an exchange of 110, but the exchange was 90, the income difference is 355 million US$. I think most of the huge losses Nintendo had last fiscal year come from the exchange rate, and the 3DS price cut, as they had to sell them at a loss. Look at the cost of Nintendo consoles and games in Japan, they have compensated the losses outside Japan with good revenue in their homeland, where they don't have problems with the exchange rates.

It's not impossible to see here a Wii U launch cost in EUR/US$ that isn't as we used to see, with a cost of 25000 JPY, but 300 US$/€, not 250.

In my opinion $300 will be cheap enough to sell out of initial shipments this year, especially if Nintendo include the right software. Do you think they could break even at that price?

Furthermore, aren't there other ways to deal with the exchange rate? For example wouldn't it be wise to examine the option of letting NoA and NoE hold on to their revenue in the form of some kind of short term investment (say, up to a year) in the hopes that the exchange rates will be more favorable by then?

Why suffer two exchanges if you can get by with one in the short term?