Tlozjb said:
Well we would first have to see what caused the losses in the first place, in 2011 it was the huge price drop of the 3DS, in 2012-2013 was caused by Wii U being sold at a loss, not only that but by what I have read Nintendo was also using a lot of money on warehouses for all those Wii Us, and along that Nintendo was also getting plagued with lawsuits, one which was lost and caused to give like 3 dollars per 3DS sold. Now that is majorly gone, the 3DS is no longer sold at loss, the New 3DS using a different 3D technology doesn't need to pay those royalties, the Wii U being sold still seem to be leftover from the original order(as seen by the supposly discontinued basic pack still existing in Europe) so no production for it to bring losses, the higher ups took a temporary salary cut, and as shown by amiibo, Nintendo has pushed back how much it produces to fill up warehouses, so all of those expenses have been lowered. Last year, Nintendo also constructed some buildings and bought a mysterious tech company, so that contributed to their loss. Though now all of that is out of the way, the majority of what is gained stays, and now with some extra income(compared to past years)from things like the MK8 DLC, amiibo, faceplates, 3DS chargers because of New 3DS, Hyrule Warriors DLC, etc. But this quarter will be interesting, since advertizing expense must be up by A LOT |
Now that the numbers are out i did check for the year and their biggest expense decline is in cost of goods sold and advertising (for the fiscal year- i did not look for the latest quarter) compared to the previous fiscal year- they are forcasting similar COGS expenses and advertising for next year along with the same+/- number of Wii U s sold and less 3DS units sold (I can t remember their software sales forcast )
something that would be interesting to know would be how they acount for expense toward making games (both 1st and 2nd party) I would imagine their is alot of flexibility re how those expenses are accounted for- I wonder f 2nd party games can be off the books until they are released or just booked as accounts payable- my guess is that they are able to massage the numbers year to year -
I think they will struggle to make an operating profit next year though- I think it will be hard to reach 3.4 million Wii U s sold for this fiscal year and even they are forcasting lower 3DS sales- I think they may only have 1 mobile game releases this fiscal year -but i m not 100% sure- but I dought it will be more tan 2 at best and the game(s) will prob be released much later in the year
