Godmachine
[H]F Junkie
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- Apr 7, 2003
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http://www.geeksaresexy.net/2012/04/26/nintendo-loses-half-a-billion-bucks/
Damn , Nintendo is under the gun. Far cry from only a few years ago. Can't imagine what kind of pressure they are feeling to make the Wii-U a huge success.
There are two different figures in media reports, both technically accurate. The company’s operating income, which is effectively its profit or loss from doing business, was minus 37.3 billion yen (US$460 million.) Its net income, which takes into effect interest payments, taxes and miscellaneous transactions not connected to the core business (such as buying or selling property) was minus 43.2 billion yen (US$533 million.)
The loss, the worst for three decades, was actually lower than the company had expected. It was a drop in revenue rather than cost increases that caused the problem, with major factors including:
A strong yen on the currency market making prices outside of Japan comparatively more expensive.
A major price cut to the 3DS (which looks to have taken it below cost price) to compete with other devices.
An overall drop in sales of the DS range from 21.1 million to 18.6 million.
A major drop in Wii sales from 15.1 million to 9.8 million.
Damn , Nintendo is under the gun. Far cry from only a few years ago. Can't imagine what kind of pressure they are feeling to make the Wii-U a huge success.