JWeinCom said:
ZyroXZ2 said:
Hmmm, maybe I don't fully understand the financial jargon from the links, but if they posted a loss rather than a profit, couldn't a large portion of these losses actually be DEVELOPMENT costs?! We all know the 2014 schedule for Wii U is packed with both announced AND unannounced (or at least only acknowledged to exist, nothing has been shown) games being developed straight from Nintendo's pockets. If we know WHAT is causing the loss, it may not be as bad as it seems...
Think about it, what if they're posting a loss because 2014 is about to blow our minds with how much money they've been pouring into development of games during this 2013 fiscal year?! |
Well, no. They knew what they were planning for development back when they made their initial predictions, so if these losses are all about development costs, they would have projected low figures and said "profits will be low this year because we're developing tons of shit". So, since they're cutting forecasts at the end of the year, it pretty much has to be (and they said it is) because sales fell below expectations.
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While that does make sense, they could have also made executive decisions DURING the late portion of the fiscal year to pump money into marketing, speeding up development (notice articles about Nintendo's second party developers hiring?), etc. without "believing" (I put that in quotes to indicate that clearly someone guessed wrong on their projections) that the effect would have been so drastic on their projections, right?
I guess what I mean is, just because a prediction is made doesn't mean no executive decisions can be made that would effect it. Sure, sales fell below expectations, but wouldn't it be entirely possible that, for example, in November, some very important people signed off on increasing manpower or increased budgets? This would ultimately lower the forecast for the remaining quarter, we just didn't know about it until now...
I'm hoping I'm making sense, because I find it really hard to believe that going from a 55 billion yen profit projection to 25 billion yen loss is PURELY attributed to lower sales...
