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

[Dunban67]

I think the pressure to get to short term profitability is one of the big challenges Nintendo has had lately- When you launch new consoles (3DS, then Wii U) , those consoles need huge investment- not just for the console alone but for marketing and for games- until the wii U has been successfully launched, Nintendo needs to be spending money making games and buying games (among other things) for the Wii U-

Gaming is a cylycle business if there ever was one- but Nintendo was able to go many years w out a losing Quarter - so the losses of recent years are not sitting well w its investors- but todays market is different than it was in past console generations- I don t think any of the Big 3 can expect to launch a console w out losing money over the relative short term in order to make it long term-

If Nintendo had the resources to continue supporting the Wii (at least to some extent) over the last 2+ years they would still be selling almost as much software as the X360 and PS3 are today- after all the Wii has sold 100 million +/- consoles - instead of continued support for a 100 million consoles via making more games for it ( I am sure they are much cheaper to make for the wii aslo) they put those resources into making games for the wii U- which has less than 3.5 million consoles - not only that - they did not get those games out quick enough for the launch window-

my point is- Nintendo has been trying very hard to turn a profit Q to Q at a time they should be investing $$ s like crazy for at least 3 platforms (3DS, Wii and WII-U) - short term their losses would have been greater but longer term they would have made more money and been able to maintain a more diverse revenue stream

Nintendo makes money selling their own games- IMO it would be hard for them to make TOO MANY so long as they continued to be of similar quality as they typically produce-

If NSMU and Nintendoland were released on the wii (among others) in 2011/2012 and Metroid and Mario Galaxy 3 (among others) were released on the wii U in 2013 they would be hitting on all cylynders as soon as 2nd half 2013 - if they continued to support the Wii over the last 2 -3 years the profits from those software sales could be funding a large % of the extra resources spent on the Wii U to get more games out-

Nintendo, its board and shareholders are not used to losing money AT ALL - so I think it is difficult for them to get "the green light" to take the short term losses needed to get their various consoles launched and maintain their existing consoles- getting 3rd party support would help them too but that takes money as well