Gammalad said: What else is Nintendo spending on to be not making a profit from this? Are they going on a massive buying spree we aren't aware of? |
Clearly, you did not read the OP.
"The operating loss was 9.4 billion yen because total selling, general and administrative expenses including fixed expenses exceeded gross profit." Source
Selling expenses are those expenses incurred in attempting to create sales for the company. Examples include marketing expenses and compensation for sales staff. General and administrative expenses, meanwhile, represent most overhead costs of operating a company's business, which includes advertising among other things. If you want a full breakdown of what Nintendo are spending on, look up the definition of the various types of expenses listed in the quote.
To me, this says that the operating loss is at least partially attributable to the amount of money they are spending on marketing - something they are probably having to throw more money at now than if they'd spent it 18 months ago. The cost of things like E3 and the various related marketing pushes they're doing would also have made an impact on this.
They are spending money on marketing now to reap the benefits of the sales in the future.