With the announcement of the Nintendo 3DS' price drop, new information has surfaced that indicates that Nintendo will now be selling the 3DS at a loss. Fore those of you who don't know what a loss is, pretty much it means that Nintendo is selling the Nintendo 3DS for less than they payed to make the product. Satoru Iwata of Nintendo said this move is necessary in order to improve fiscal performance next year and beyond. Nintendo rarely ever sells their products at a loss, so it'll be interesting to see how this plays out.
Another thing involving Nintendo and money is that Satoru Iwata is taking a price cut. Here's what he said:
[Because of] cuts in fixed salaries, I’m taking a fifty percent cut, other representative directors are taking a 30 percent cut, and other execs are taking a 20 percent cut.
And one last thing. The great-grandson of the founder of Nintendo, Hiroshi Yamauchi, has "lost" $300,000,000 in one day. Now, the bank didn't all up and take $300,000,000 from him, but because of Nintendo's financial problems, the values of his shares with Nintendo (he owns about 10% of the company) have gone down.
So yeah, how do you think Nintendo's financial problems will effect them in the coming months with the release of Skyward Sword and in the coming years with the Wii U and the ever-expanding game library of their consoles? Post your thoughts below.