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Popular opinion is that a company dealing in consumer electronics should post a profit during the biggest retail season of the year. Nintendo was only able to make 250 million with high 3DS, DS and Wii shipments and high software shipments. This holiday season, the DS was heavily discounted and Wii had a price cut and total shipments are down 50-60%, along with ds and wii software. 3DS is flat year on year and no major releases in the west (and the 3DS and XL were heavily discounted) and the Wii U has been a debacle. I will be surprised if Nintendo post any operating income this quarter (and that would only come because of favorable exchange rates, which I think will be a small catalyst) |
Seems my skepticism was justified as Nintendo did post an operating loss for the quarter and its net income gains came from tax changes, currency flucations and lower expenses (no growth in actually selling videogame hardware and software)
Despite the wii u being on the market last quarter, total sales are down from the same 9 months last year which is mind boggling.
Europe, which was their largest market for most of the Wii era, has now be regulated to 3rd which is alarming. And their future forcast still paints a picture of no growth (cuts in 3DS, Wii U and DS) and just alterations to its bottom line (tax changes, yen depreciation, probably more expense cutting)
The US market really, REALLY helped out numbers this past quarter but with fiscal and job worries starting to overhang our economy, ill find it hard for nintendo to have the same repeat success going forward, especially in the slow months.
edit higher operating income but still overall operating loss
