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NWR Interactive => TalkBack => Topic started by: NWR_insanolord on July 25, 2012, 05:19:54 AM

Title: Nintendo No Longer Losing Money on 3DS
Post by: NWR_insanolord on July 25, 2012, 05:19:54 AM

As of today, the hardware isn't selling for less than the price of manufacturing it.

http://www.nintendoworldreport.com/news/31154

Nintendo is no longer selling the Nintendo 3DS for below manufacturing cost starting July 25, according to the company's first quarter financial results.

Nintendo began selling the hardware at a loss following the drastic price cut the system received last fall. Nintendo did not specify how much they were losing per hardware unit.

Title: Re: Nintendo No Longer Losing Money on 3DS
Post by: lolmonade on July 25, 2012, 09:36:38 AM

While this takes into account manufacturing costs, I assume they're still taking a loss on the systems overall with the distribution costs & marketing push they've made as of late for the product.
 
I could be wrong, it's just that the wording of the article implies Nintendo was specifically referring to the manufacture of the 3DS.

Title: Re: Nintendo No Longer Losing Money on 3DS
Post by: Adrock on July 25, 2012, 09:49:49 AM

I feel like Nintendo wouldn't have gone out of their way to say they aren't selling at a loss if they were still selling at a loss in some way.

Title: Re: Nintendo No Longer Losing Money on 3DS
Post by: lolmonade on July 25, 2012, 10:09:04 AM

Quote from: Adrock on July 25, 2012, 09:49:49 AM

I feel like Nintendo wouldn't have gone out of their way to say they aren't selling at a loss if they were still selling at a loss in some way.

I think it's something a company would definitely do during a quarterly earnings meeting.  If they can proclaim that the system is not longer manufactured at a loss (even if that doesn't included distribution/advertising cost), it could bolster investor confidence, positively influencing share prices.
 
It would essentially be a lie of omission, still technically being a true statement that could positively influence public perception about the company operations.

Title: Re: Nintendo No Longer Losing Money on 3DS
Post by: TJ Spyke on July 25, 2012, 04:10:34 PM

Marketing costs are never taken into account when determining if a product is profitable or not since it's not related to the cost of the actual item (whereas distribution costs is related).

Title: Re: Nintendo No Longer Losing Money on 3DS
Post by: Chozo Ghost on July 25, 2012, 06:59:43 PM

Whatever they lost on the hardware, I'm sure they've more than made up for in software sales. The 3DS isn't a hacker friendly pirate system like the PSP was. Unlike the PSP, the 3DS does have software and that software sells.

Title: Re: Nintendo No Longer Losing Money on 3DS
Post by: Louieturkey on July 25, 2012, 08:39:38 PM

Well, Nintendo did announce a $220 million net loss for last quarter.  If they can sell the 3DS even at cost, it'll be huge for their bottom line.

Title: Re: Nintendo No Longer Losing Money on 3DS
Post by: ShyGuy on July 25, 2012, 09:27:10 PM

TRIMMIN' THE FAT! This is the part of the movie where Nintendo is doing a MONTAGE