Author Topic: Nintendo No Longer Losing Money on 3DS  (Read 2367 times)

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Offline NWR_insanolord

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Nintendo No Longer Losing Money on 3DS
« 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.

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Offline lolmonade

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Re: Nintendo No Longer Losing Money on 3DS
« Reply #1 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.

Offline Adrock

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Re: Nintendo No Longer Losing Money on 3DS
« Reply #2 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.

Offline lolmonade

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Re: Nintendo No Longer Losing Money on 3DS
« Reply #3 on: July 25, 2012, 10:09:04 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.

Offline TJ Spyke

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Re: Nintendo No Longer Losing Money on 3DS
« Reply #4 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).
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Offline Chozo Ghost

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Re: Nintendo No Longer Losing Money on 3DS
« Reply #5 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.
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Offline Louieturkey

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Re: Nintendo No Longer Losing Money on 3DS
« Reply #6 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.



Offline ShyGuy

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Re: Nintendo No Longer Losing Money on 3DS
« Reply #7 on: July 25, 2012, 09:27:10 PM »
TRIMMIN' THE FAT! This is the part of the movie where Nintendo is doing a MONTAGE