magoghm on 19 January 2014
| ICStats said: Yes, well they haven't been making great margins like the Wii/DS years. http://www.marketwatch.com/investing/stock/ntdoy/financials You can see from looking at the Gross Income versus the Sales/Revenue. In 2009 Nintendo had a 43% gross margin on over $17B of sales. Since then not only sales have dropped year by year to around $6B but margins have also steadily shrunk to 21% in FY ending 2013. The revised forecast for FY ending 2014 is below that of 2013, and it would't be too surprising if margins continued to shrink, since the cash-cow Wii/DS businesses continued to shrink, and 3DS/Wii U had more bundling and price cuts. |
Interesting. I see that since 2009 they have significantly increased their R&D expenses, it seems like they have been increasing their capacity to produce new games (their new building for R&D seems to indicate that that plan on even more expansion).
