SpokenTruth said:
What losses? |
The cut forecast.
700m dollars down is a big number....12.3% of total sales. I can't think of anything they they misattributed except maybe not releasing zelda? Or what else could it be? Additionally, operating profit is down. They expected a 10% ROI. They sell 500b in rev, and make 50b in profit. That's logical.
The problem is that if they lost 12.3% in revenue, then they should've also lost 12.3% in operating profit, unless margin hasn't covered cost. But I can't think of anything that HASN'T met expectations. Splatoon killed it. Amiibo are still selling extremely well. There is a 22% difference between the 12.3% rev change, and the 10% profit expectation. ie, rev is down 12.3% but operating profit down 34%.
Basically there is 100m in unexpected costs somewhere because the profit slash of 170m is offset by the 12.3% return on the 700m in lost revenue. 12.3% of 700m is roughly 61m or so. Hmmm I'm getting confused at this point as well, so I'll just summarize.
Revenue is down 12%
Profit is down 34%.
If revenue translates directly to profit, then profit should only be down 12%.
So there are 2 options.
One thing cost them money and didn't return as expected (very doubtful)
Something has cost them 100m$+ and hasn't released yet, nor will release until after march.
EDIT2: Now, One possible expectation would be the DeNa delays. I could see this being a clear determinant, but 100m down still seems a bit hefty.
