Nintendo lowers forecast from 55 billion yen profit to 25 billion yen loss

[ZyroXZ2]

kowenicki said:

ZyroXZ2 said:

kowenicki 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?!

its rather obvious wahts causing the loss.  The WiiU forecast has been slashed massively.

So they were expecting much higher revenus and profits on the back of the WiiU that is now not going to happen.

There is no way to make this look ok.  Its terrible.  The markets will kick them, although the stock is already poor.

The Wii U is still sold at a loss, no?  All the profits would have been made on selling MULTIPLE games per system (not just one), and since most Wii Us sold during the holidays are bundles, I kind of see each Wii U sold in which NO separate game is purchased as being a loss...  Hence, the Wii U selling even MORE, but NOT selling enough separate, unbundled games, would only have resulted in greater operating losses, right?

is it?  who says?

and the games (remeber, the majority are first party) are massive profit drivers.  if you arent selling WiiU's you arent selling games for it either.

You are reaching here, the most logical and reasonable conclusion is the results are down due to poor sales. 

I'm not reaching at all here.  There has been no updated to the cost of production of the Wii U, and though it naturally gets cheaper over time, it's still largely presumed to be sold at a loss.

http://n4g.com/news/1150824/wii-u-is-not-profitable-after-one-game-sale

Then, to make matters worse, they cave into the demand for a price drop, and drop the price $50.  This would naturally imply the console STILL remains a loss to sell.  Then they bundled it with NSMBU+NSLU (or even the WWHD bundle), giving initial buyers of those systems little-to-no reason to go out and buy TWO games (because one game doesn't make the system profitable).  I see each console selling at a loss right there, so IF the system had sold two or three times more, that could have potentially NEVER resulted in the profit forecast anyway.  Them selling lower than expected may not have been the source of such massive losses, which is WHY I've been conjecturing that there have been decisions to pump additional money into marketing and current development projects...

Edit: I should note that it's largely assumed that it would have to be a first-party title that drives reasonable profits for the Wii U.  Someone who buys the NSMBU+NSLU bundle and then goes out and buys CoD:Ghosts+Batman:AO is probably an overall loss on that purchase for Nintendo right there...