zorg1000 said:
Soundwave said:
They are doing OK right now in terms of net income because the yen is weak, but if the yen were to go the other way, they would very quickly go back to earning a loss with their current sales/operating profit.
So you don't want to allow your sales revenue and operating profit dip so low that its at the mercy of currency fluctuations.
It isn't quite as simple as saying "well they just need to profit" ... making a profit is not always so straight forward.
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That's what I mean in the op, the number of hardware/software sold isn't necessarily the problem, it's that they have been selling hardware at a loss for over 3 years now, if 3DS & Wii U were sold at a loss at any point in their lives than their profits would be pretty good.
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I think actually only one year of their losses was attributed to 3DS hardware loss. The other years they lost money were primarily becasue of a combination of a strong yen + sales of 3DS/Wii U that weren't strong enough to offset those losses.
They need at least 50-60 million install base between their HH/console, I think that's what they are aiming for at minimum with their next unified platform.
The question really I think is how much more damage are phones/tablets going to do to Nintendo's HH market? Does it level off at some point or does it continue to spread like a cancer? I don't think we can say for sure either way right now, except it doesn't look great right now.
