Nintendo Q1 Earnings July 31st (Results Inside - Profit)

[tonio_13]

firelink said:

Mythmaker1 said:

firelink said:
I don't think Nintendo will post a loss.

The Wii U selling awful actually works in their favor, as they take a loss on the console. So the less they ship ~= the less they lose. While the 3DS selling greatly works heavily in their favor, as it is now profitable.

Unfortunately, that's not how it works.

Selling at a loss just means they get less by selling it than it cost to make it. So if it cost $300 to make, and they sell it for $250, they spent $50 to sell it. On the other hand, if it costs $300 to make, and they don't sell it, that meant it cost $300 to not sell it. Not selling it doesn't keep them from losing money, it keeps them from recouping money.

But since they are selling so low, I highly doubt they are producing as many.

 

You don't manufacture units if the units already out there aren't selling. If they have not manufactured many this quarter, then the loss they received from unsold units would be on last quarters - not this one.

You're both forgetting the main point for a hardware maker : software. That is their main source for profit, and low hadware sales = low software sales.