OceanJ on 11 January 2013
| Tarumon said: Purely from a buttomline perspective, not meeting unit sales projections: 1. For Wii and DS would be horribly bad, due to assured profits gone, so if they beat internal projections, nothing but upside. 2. For 3DS, bad but since it just came into profitability in Sept quarter, it's hard to imagine too big of a per unit profit there. 3. For Wii U, I don't think this is going to have as nasty a sting. If you are losing money per unit, selling less results in less losses not more. My personal guess on the Reggie 1 software sale claim is that he told the truth, except, Nintendo guessed wrong on how many Basic units would be sold. It is all but obvious that the delux package was a better value. Basic on the other hand, most likely was counted on to produce some profits or produce less losses. We all know by now, whites did not sell well at all. More important than today's price movement is the seemingly agreed upon targetby BOJ to explicitly pursue a 2% inflation target. This means all out money printing as the nation is really deflationary. Yen has potential to shoot past 95 to the dollar before any meaningful correction takes place. The most important date in 2013 isnt Pokemon release, but 3/31/2013. If Yen can close above 90, this singular event will overshadow any operational setbacks. |
I like your theory on the Reggie 1 game sale claim. Hadn't thought about it like that. Also great point about Wii U selling for a loss...selling less of them sort of helps. But then again, I'd have to believe selling more translates to more game sales, a higher installed-base, and recovering manufacturing & sales expenses, so probably on balance a Wii U sold adds to profitability.
