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Vinniegambini on 14 January 2013
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Tarumon said:
Vinniegambini said:
Tarumon said:

AC3 and BLOPS2 are not the type of games that will drive you to drop $350 on a Wii U, when you can just play it on your PS3 or Xbox360. Just because Nintendo haters love saying Nintendo doesn't have these games doesn't mean they will buy a Wii U when they do have them, especially not for their ports.

Nintendo, being as cheap and greedy as they have become, is just suffering from playing too safely. Just remember their words about how Wii continues to be a viable console, how Wii could co-exist with Wii U, how they repackaged a Wii for Cananda, shows, until Wii truely dies, they just won't turn on the spiggot for Wii U. From my post earlier today, you can see Wii U is the first console from Nintendo that came out while its predecessor isn't already dead. Gamecube handily beat N64, Wii handily beat Gamecube, but Wii still sold a crapload of units in 2012.

People talk about how Wii U undersold Wii in their launch years, but Wii U is also under selling Wii THIS year (2012).  I really think Wii U was rushed out the door to just cash in on early adaptors, while the internal pipeline of Nintendo is really geared towards a later release during 2013.  The most obvious numbers would be in their 4th quarter marketing expenses.

Despite everyone predicting doom, and Nintendo shares under pressure, 2012 marketing expenses was lower than the year prior.  Again reflecting not an aggressive stance but a defensive one.  Money talks, when we see Nintendo ramping up marketing expenses that's when the unit sales over that same period truly speaks to the product's potential.

+1

You think Wii U is still selling at a loss with exchange rates in their favour?

Unless these things are made in Japan, if they are made in China, the profit or loss component is sorts locked in for the most part due to RMB being a non-floating currency.  The top line revenue will seem higher in Yen after translation but so will the cost numbers resulting in not much net benefits.  Again, their sales are so minimal, what did they say? $300 million from Wii U? Europe even a smaller size, say $200 million (pulled out of my ass), that's only $500 million.  If their "loss" margin was 15% (some where between the sale of 1-2 games they breakeven), the gross loss contribution of $75 million, not counting software.  Wii, DS, 3DS I assume made money...I just have a hard time seeing Nintendo not reporting a gross profit during 3rd quarter.  Wii U is still a small part of the Nintendo Pie, gross revenue wise in 2012 I assume 3DS>Wii>DS>Wii U. Without Wii U, Nintendo had a 20% gross profit margin (should be higher in 3rd quarter), so net net it's gotta be positive.

On top of that, cash wise with 10-12 billion @ 10% gain or 120 millionish USD in translation gains 3rd quarter?  Nintendo is just not a normal company, it's rediculous when your cash is many times your annual sales.....Thats like a millionaire with a 8 dollar an hour wage job, just out of wack. 3rd quarter ought to be profitable even on a net income basis.

If they make their stuff in Yen, then the situation would be pretty awesome, literally recovering most of the anticipated Wii U loss from translations.  Anyone know?  I just assume they are made in China with no real knowledge.

Foxcon, a Chinese company, handles the production for Nintendo products so yeah :( Furthermore, Iwata said that they pay most of their hardware components in US due to how the yen fluctuates.

I too believe Nintendo will post3rd quarter profits much like last years. However, will it offset the 300 million losses for the first half of 2012? Looking at how Iwata predicted 80 US and 100 EUR - Now 89 US and 119 EUR, I can't see how they not recuperate the loss or am I just pulling that logic out of my ass too? :p