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Torpoleon said:

@curl-6 But a price drop and bundling with a game would explain why Nintendo is projecting decent sized drops in profits but comparatively smaller drops in hardware and software.

I thought the profit drops would be due to manufacturing costs of the new system. I imagine there will be a spike in cost before the process is streamlined and initial manufacturing problems are fixed.

Nintendo is also one of the few in the industry who actually increased the number of employees lately.