| Soundwave said: How are they still losing money if the 3DS is profitable? Wii U I guess, but they're not even selling very many of those. |
Umm, because operating expenses are higher than the gross profits on the consoles.
"Net sales as a result were 74.6 billion yen (of which overseas sales were 58.0 billion yen or 77.7% of the total sales), and gross profit was 32.5 billion yen. The operating loss was 9.4 billion yen because total selling, general and administrative expenses including fixed expenses exceeded gross profit."
I'm not surprised. I think you'll find some analysis I posted a few months ago, discussing why I think it's likely Nintendo will lose more this year than the last.
Although Nintendo projected a profitable fiscal year, their own unit sales projections tell a different story. Flat 3DS units, small increase in Wii U units, offset by big drops in DS & Wii software units. A profit would be a surprise unless they cut expenses.
You can well see that their overall sales are down 8.4% YoY expenses are up 1.6% YoY.
