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

[zorg1000]

kowenicki said:

ZyroXZ2 said:

kowenicki said:

ZyroXZ2 said:

 

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...

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.

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.
"

contributed

profit forecast of 55bn yen reduced to loss of 25bn yen... thats a huge 75bn swing

these increased marketing costs are 23bn yen...

To be fair he never said it was the sole reason, just that it contributed to it