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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Opening explanations by the President
at the press conference regarding full-year financial forecast
and dividend forecast modifications
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.
