Nintendo Shares Plummet!

[Mr Khan]

Carl2291 said:

Mr Khan said:
It was inevitable that they would have to revise their results towards reality at some point.

Although yeah, posting a loss in the Pokemon/MH4 year means that something is *really* bleeding out on the Wii U side. How bad must the per-unit hardware loss be to offset all that 3DS money they have to be swamped in?

The HW losses arent the only problem. Because the Wii U is selling like trash and its an unattractive purchase, software also isnt selling on the machine.

Nintendo are being forced into value bundles further cutting into SW profits.

The hardware losses are the root problem, however, since if you're making a profit just selling the machine alone, it really doesn't matter how much software you sell. Obviously you need good software to sell in large enough numbers to motivate purchase of hardware in healthy amounts, but you don't need to obsess over attach rate when the hardware itself makes you money.