Nintendo Suffers 29.1 Billion Yen Operating Loss

[Aiddon_v1legacy]

73 million?
Maybe the costs are SLIGHTLY bloated, Nintendo?
Did you REALLY think this was gonna sell?

Considering it's sold out EVERYWHERE, yea, I think they did.

But seriously: this is probs just because the Wii U hasn't started selling yet. They have all these consoles sitting in warehouses and they haven't moved them to stores yet... they're just losing money.

But talk to me AFTER the Wii U launches. If they're still in the red, THEN I'll be concerned.

I'd love to pull up some analysis data and find out if historically console makers have been in the red JUST PRIOR to releasing a new console. I bet the findings would be in support of Nintendo.

Yeah, first half of the year is typically the slow part of the year; the spring has a moderate library of releases at best and the summer is usually dead. It's only when the fall rush and beyond starts moving where you can get an idea of a company's health. Plus Nintendo has so much goddamned money in the bank they could lose a billion every year for a decades and STILL not be in danger of bankruptcy.

 

[sb666]

This is sad news

That's what you get for following the Italian business model.

I see what you did there.

 

[Patathatapon]

From what I've heard about the next console generation, I didn't think anyone with a mind would consider getting the new systems. The Wii-U seems to sound stupid, and when Nintendo Power said they'd have a "pro" controller which resembled a 360 controller, and I knew what I wasn't gunna buy.

The PS4 or whatever apparently is going to eat your games, essentially trying to kill EB games. I'll stick with my CPU thanks, at least I can bring my steam account over to my friends house a hell of a lot easier than a PS4.

I've heard nothing about Microsoft, but I don't use my 360, Wii, or PS3 very much anymore, so why should I bother?

As those above have said, It's mostly because no ones been able to buy any yet, so nothing is happening. Nintendo fan boys will buy it, and I'll probably buy it the moment It's cheap as shit like the Wii is now. Nintendo isn't going to be harmed much, they'll spring back, they always do.

 

[J Tyran]

Why would a strong Yen negatively affect Nintendos manufacturing costs? The WiiU isn't being built in Japan so wouldn't a strong Yen help manufacturing costs? I must be missing something here, that or Nintendo are talking rubbish in order to try and cast a better light on the losses.

 

[rapidoud]

They're more than likely banking on a strong holiday season with the Wii U to recoup the losses.

business profit/loss goes in cycles for any company, and any product, and as such this is just a down period. this is why Microsoft is Doing this [http://www.escapistmagazine.com/news/view/120302-Subsidized-Xbox-Pops-Up-at-Four-U-S-Retailers] to boost 360 sales so that they don't have to report a loss on the system because of market saturation, and to have people finally replace the gen 1 systems that have survived all this time.

Right, right. I had trouble figuring out why this is news to anyone. And my statement was a bit generalized. The Wii U will sell at a loss, like all consoles when they're brand-spankin'-new. Losses will be eased with software sales and the console itself won't start to turn a profit until much later in it's life cycle when manufacturing costs are lower and production of the units is streamlined.

PS3 sold for $1200 at a slight profit in Australia, which is why I'm never buying another Sony product for as long as I can (it came free with the TV and our current TVs at the time were more than 15 years old so we figured we should upgrade).

But yes, this is correct, the Wii U has to be manufactured many months in advance thus of course in the previous financial periods the company will run at a loss due to the fact that you can't (well under local accounting law) report their sales price on your balance sheet, only their cost.

 

[Aiddon_v1legacy]

Why would a strong Yen negatively affect Nintendos manufacturing costs? The WiiU isn't being built in Japan so wouldn't a strong Yen help manufacturing costs? I must be missing something here, that or Nintendo are talking rubbish in order to try and cast a better light on the losses.

Welcome to economics, they're REALLY fucking complicated.

 

[BartyMae]

At original poster: You say they had a 29.1 billion yen total loss stemming from a 73 million yen loss that was partly negated by a sales profit of 44 million yen, (29 million loss total). Shouldn't those read billion, not million?