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Nintendo's Losing Money?

zeldahuman

The Missing Link
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Feb 22, 2011
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Hey all,

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.
 

Ventus

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Well, the price drop sounds like it could hurt Nintendo but at the same time it 'could' increase sales. It just depends on their net income I suppose and how many people are willing to support them. If Nintendo is seriously losing money, they might have to drop the Wii U if it goes down to the worst of it, and the only reason I'm saying they would have to is that people are becoming greedy, so they want more of this more of that, better this better that. With the advent of gaming and better graphics, companies have to ship in and ship out more and more materials. As we know, the Earth's resources are limited so as you keep bringing in more gold for a console, at the same time you're losing gold. And to get finer quality you need a lot of the good stuff which is what is causing all of these game companies to start to lose their money and eventually go bankrupt.

If they keep the Wii U, it's price would have to be in the high $300s or up just like the PS3 was $600 at launch I believe. That could be a huge screwup for sales and they would further be losing money as systems would sit on store shelves rather than be at a customer's home.

I heavily doubt that Nintendo will go bankrupt or drop the Wii U or whatever, but if it gets near to the worst it can then they would have to. I hope they can recover but still keep the price of the 3DS moderately low x)
 

Garo

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They had to drop the price to compete with the Vita. If both of those systems were the same price, I doubt that the 3DS would sell beyond die-hard Nintendo fans. But now that the 3DS is by far the cheaper option, Nintendo's handheld can at least be competitive.
 

zeldahuman

The Missing Link
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They had to drop the price to compete with the Vita. If both of those systems were the same price, I doubt that the 3DS would sell beyond die-hard Nintendo fans. But now that the 3DS is by far the cheaper option, Nintendo's handheld can at least be competitive.
... And i believe that the price drop was a great thing! More people will now want to buy a 3DS because it's cheaper. But at the same time, Nintendo is making less of a profit, and that could mean bad things if it keeps up. But, the DS Lite when it was released sold at a loss for a while, so i think Nintendo's capable of maintaining themselves and getting their acts together.
And, as for the pay cuts, i think Nintendo and Iwata played their cards right with that. I mean, their paychecks are HUUGE, so they aren't loosing that much money. And, they'll now have more money to put toward new projects, games, etc.

so..yeah.
 

AustinFox33

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Hmmmmmmmmmmmmmm...
Well hopefully enough people buy games for the 3DS for Nintendo to profit; and if OoT 3D hitting a million copies in about a month hopefully if keeps selling. Also seeing how well the Wii did when it was released, I have high hopes for the Wii U. Not to mention the spike in 3DS sales thats going to come from the Holiday Season. So for now they might be losing money, but I dont really think theres any real danger for Nintendo.
 

zeldahuman

The Missing Link
Joined
Feb 22, 2011
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Fighting Alongside Link
Well hopefully enough people buy games for the 3DS for Nintendo to profit; and if OoT 3D hitting a million copies in about a month hopefully if keeps selling. Also seeing how well the Wii did when it was released, I have high hopes for the Wii U. Not to mention the spike in 3DS sales thats going to come from the Holiday Season. So for now they might be losing money, but I dont really think theres any real danger for Nintendo.
I couldn't agree more! But at the moment, Nintendo is in a financial crisis. I mean, pay cuts, selling the 3DS at a loss, i know they'll hold up, but things look bad for Nintendo. They're in deep water now. But, as you said, the Wii U will be amazing and OoT 3D is really the only game at the moment keeping the 3DS alive.
 

Ventus

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The 3DS just released though, not many games will be out for it. The PS3 suffered the same exact problem AND a high price but it pulled through after a couple of (wellneeded) price drops. Sony sucked for it's first year of the PS3 to be honest.
 

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