“Things don’t look so good once you take away the boost from foreign exchange, because the operating profit outlook has been cut below consensus level,” said Mitsushige Akino, an executive officer at Ichiyoshi Asset Management Co. in Tokyo. “Nintendo has a problem of getting their concept of gaming gain traction among users beyond their core audience.”
Hmmm. Seems like much of their profit is coming from favorable currency fluctuations rather than gaming related profit. So yeah, that is a big red flag to investors.
Still it's better than the years where they were losing money outright.
Also sounds like Wii U hardware still is not profitable, looks like they were selling older manufacturered units (were the book loss was reported on the previous fiscal year). That means now that they have to start producing new Wii U units again, they will go back to taking losses on them. I was kinda confused as to why their net income for the end of December was higher than what they expect for the year end in March, but that I guess that's showing once Wii U production starts again (this month?) they expect it to eat away at some of the profit from the previous 9 months.
