impertinence on 08 May 2014
| Yakuzaice said: What is the actual quote and its context? Because in their financial statement they said "The “Wii U” hardware still has a negative impact on Nintendo’s profits owing mainly to itsmarkdown in the United States and Europe" |
Think of it this way:
Regular priced Wii U => profit margin = $25
Markdown priced Wii U => profit margin = $0.25
This is how a markdown can have negative impact on the profitability of a product without selling at a loss.
(Disclaimer: These hard numbers are completely made up to illustrate an idea, if you feel compelled to reply with something along the lines of "But but but, the procedrop in US is more than $25, your numbers don't add up. Please don't do it. Numbers are for illustrative purposes only.)
