Nintendo Q2 Earnings October 30th - Results Inside

[nadam23]

TheLastStarFighter said:

nadam23 said:

Max King of the Wild said:

nadam23 said:
Someone explain to me how Nintendo sold 140,000 more Wii U's and 600,000 more 3DS's yet had a greater operating loss than quarter 1. This does not make sense to me.

Price cut and software sales

The WiiU price cut was only the last week and a half of the 2nd quarter. And I would think selling that many more systems in addition to Monster Hunter, Wind Waker, and Pikmin 3 would make software sales greater. Still confused. 

You can assume that almost all Wii U's shipped in this quarter were done so at the reduced price.  Sales were almost stagnant before the price cut/wwhd launch, so retailers were not ordering more units.  a $50 price cut is significant. It's an additional $15,000,000 in lost revenue despite the increased units shipped.  The more hardware moved actually is actually more likely a negative thing in the short term.  Monster Hunter was a great title, but Nintendo would make more off of a title like Luigi's Mansion because it is first party.  There were no big first party titles released this quarter.  Wind Waker's release was only digital.

I see. This helps explain it. 

I keep thinking nintendo is going to have a good next quarter every time I read these results, but then every quarter I'm wrong. Now I'm thinking it again. There's no way Nintendo doesn't make a pretty large operating income for quarter 3 right?