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

[Nem]

Soundwave said:

Nem said:

DD_Bwest said:
750million... thats alot of money.

how much did they have in the bank? lol

Dunno if someone said it yet, but its 240 mil, not 750.

They still have plenty in the bank to survive many more years at this pace.

 

Back on topic... i wish i knew what they are losing money on. Their software sales are good, the 3DS is not sold at a loss. The Wii U might be. So is this an effect of the price cut? Ala PS3? If so, then its a temporary situation and things should improve with time.

I know they built a new Headquarters aswell. Dunno where that is factored in.

Inventory is probably killing them. When they make a Wii U, they still have to pay the component suppliers whether or not they sell the system or not. 

When you're not selling as many systems as you hoped, they pile up in the warehouse and that tab is on you until you can sell them. 

It's the same with the 3DS, they probably were anticipating higher sales and likely ordered more units than they were able to sell and now are stuck with them. 

If they ordered the number on their projection then yeah i can see that happening. But then it were overly optimistic projections that "broke the bank" and not the sales per se.

I'm saying this cause it does indeed seem dumb. Nintendo should be making a profit otherwise. They sell alot of software at max price (cause they dont usually cut those prices). We'll see how next year pans out.