Godchild1020 said:
Vinniegambini said:
Godchild1020 said:
That was from October, for all we know that could be from the lack luster sales of Medal of Honor and Need for Speed. I know those games broke a million, but that was after they posted those numbers. Or maybe those are from the Star Wars MMO and those numbers are before the release of MoH:W and NFS:MW?
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No, those are losses incured from July to September known as Q2. That quarter had quite an impressive software release, FIFA and Madden; yet, they posted a loss. It's sad but the business model the industry has been pushing forward have very low profit margins regardless of selling millions of copies.
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I was wrong. What did they invest in to make them lose so much money? What games didn't sell as well as expected? That is a lot of money to lose and to have 2 of their biggest sports games release at that time, is a shame.
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I really don't know to be quite frank. I'm inclined to think that it is mismanagement and poor investment choices (Star Wars MMO, PopCap games, etc.). Furthermore, the mentality of still having bonuses and receiving millions in bonuses for company CEO's and management is also an incurring cost. When Nintendo posted a loss, Iwata took full responsibility, cut his salary by 67% and the developers at Nintendo took a 20% paycut. Costs-cutting measures were made and one year later after posting a loss, Nintendo will have returned to profitability by March 2013, not bad.
