kowenicki said:
ZyroXZ2 said:
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.
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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?
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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.
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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...
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for pity sake
millions fewer WiiU sales expectd, and now millions fewer 3ds sales expected... but the loss is due to sofware development costs.
you are reaching, trust me.
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I'm really not: http://www.gonintendo.com/?mode=viewstory&id=220598
Here's a portion I've copy and pasted from it:
"As for advertising expenses, and research and development expense forecasts, we made revisions to increase them by eight billion yen and 15 billion yen respectively from their forecasts made at the beginning of this fiscal year. We expect advertising expenses to increase due to the effect of the expenses incurred in foreign currencies to be converted into Japanese yen by using weaker yen rates. The estimated increase of research and development expenses is based on reflecting our ongoing enhancement of the development structure, and new research and development activities. These increases contributed to lowered estimated profit forecasts.
"
Edit: I think you're missing my overall point. I HIGHLY doubt such a MASSIVE turn to losses is just "lower than expected sales". I think everyone is so quick to jump on the Nintendo-doomed bandwagon that they simply point at low sales and say "see?! Nintendoomed because it's not selling enough!"...
