| padib said: I appreciate your numbers but I'm not sure if it's me being silly or if it's the other way around. The reason is that investing in the development of a new console will only increase SG&A costs. If what you're saying is true, the solution to their losses right now is to reduce their overheads and increase their sales. To increase their sales, they need to increase their software output. To increase the lifespan of a console is equivalent to support the console with games over a longer period, hence increasing potential profit while reducing overheads. |
Well, the numbers as I can see are very bleak. There could be a lot of details overlooked, but basically it's a big doo doo both in terms of being able to invest in a new console, and in terms of increasing software output.
Reducing costs means make many Nintendo employees redundant, cut marketing, cut contracts. Not exacly good for increasing software output and sales.
I still think though that they must invest in a future console anyway, unless they don't have an idea how to be more successful in that market again.
