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Nintendo to Post Major Financial Loss

by Andy Goergen - October 26, 2011, 9:06 pm EDT
Total comments: 41 Source: Andriasang, http://andriasang.com/comyr8/

The rumor mill predicts a loss of over a billion dollars over the second half of 2011.

Nintendo will post a loss of ¥100 billion tomorrow (approximately $1.31 billion), according to Japanese newspaper Nikkei. The loss is for the period of April 2011 through September 2011. According to the report, the loss is mostly attributed to the value of the yen against the Euro, and amounts for ¥40 billion of the rumored loss. In comparison, for the same period in 2010, Nintendo posted a loss of just over ¥4 billion.

The predicted loss for the period was ¥55 billion, making the rumored final figures almost double what was predicted. Andriasang notes that it is unclear how much of the report was Nikkei's analysts doing the math themselves.

Nintendo will reveal its earnings for the period in Japan on October 27.

Talkback

Kytim89October 27, 2011

Nintendo is going to have to pull a rabbit out its ass to turn this around.

xcwarriorOctober 27, 2011

Well to a point they deserve this for not releasing basically anything on Wii for 6 months and doing the same thing with 3DS. They will turn it around of course, but I almost think they forecast for these kind of drops.

UncleBobRichard Cook, Guest ContributorOctober 27, 2011

Nintendo is still making a profit for the year - in spite of this loss, which 40% is virtually completely beyond Nintendo's control (unless they start jacking up prices in the US and Europe to make up for the super-strong Yen).

They're also the #2 game company in Japan and the #1 hardware manufacture.

I seriously doubt Nintendo is too worried about turning anything around.

Nintendo shareholders... however....

Kytim89October 27, 2011

This makes me wonder if Nintendo might actually give in and release Operation Rainfall titles?

DiscostewOctober 27, 2011

If it is mostly because of the yen vs the Euro, then it isn't just Nintendo affected by this. Besides, I'm sure things will change this holiday season.

broodwarsOctober 27, 2011

I'm suddenly reminded of that scene in "What About Bob?" where the house explodes and its two formers owners are on the boat on the lake shouting "BURN!  BURN!" and laughing.  :P:

With the way that the Wii's been left out in the cold this year in NA in favor of the 3DS, I can't say I'm not enjoying this and hope that Nintendo sees several more quarters like it (if only to see them completely humbled for the first time since the Wii launched).  Still, the 3DS price drop, Zelda, and Christmas will probably allow them to salvage this current quarter.  I'd look for them to post modest profits unless the 3DS just completely dominates over the Christmas season.

Kytim89October 27, 2011

Quote from: broodwars

I'm suddenly reminded of that scene in "What About Bob?" where the house explodes and its two formers owners are on the boat on the lake shouting "BURN!  BURN!" and laughing.  :P: :

With the way that the Wii's been left out in the cold this year in NA in favor of the 3DS, I can't say I'm not enjoying this and hope that Nintendo sees several more quarters like it (if only to see them completely humbled for the first time since the Wii launched).  Still, the 3DS price drop, Zelda, and Christmas will probably allow them to salvage this current quarter.  I'd look for them to post modest profits unless the 3DS just completely dominates over the Christmas season.


I do not see anything but Mario Kart 7 having a chance of pushing 3DS units this season. Does IOS gaming have anything to do with this? I mean Level 5 just announced that the Layton games are being ported to the Iphone.

So in previous results, it was the Yen vs. the Dollar that caused their losses. Did they recently convert a bunch of holdings into Euros?

broodwarsOctober 27, 2011

Quote from: Kytim89

I do not see anything but Mario 3D Kart having a chance of pushing 3DS units this season. Does IOS gaming have anything to do with this? I mean Level 5 just announced that the Layton games are being ported to the Iphone.

Mario Kart 7 will probably do well, but the big wild card is Super Mario 3D Land.  The general public has definitely preferred the 2D Marios to the 3D ones, so it'll be interesting to see how that game is received.  It'll probably do well as well, though, since if you're a 3DS owner I don't see how you don't buy that game.

Kytim89October 27, 2011

Another reason why Nintendo is reporting losses is because the two big juggernauts, the Wii and DS, are slowing down in terms of games, but their popularity is not dissipating as quickly. Until the Wii and 3DS finally do fully collapse then the 3DS, and even the Wii U, will suffer slow sales.

You have to keep in mind that the economy here the states is going to hell. I do not have nearly the amount of money I did back in 2008 when I bought my Wii. Hell, up until 2010 I was purchasing every DS model except the XL. I may not be able to afford the 3DS for quite some time.

BlackNMild2k1October 27, 2011

Quote from: MegaByte

So in previous results, it was the Yen vs. the Dollar that caused their losses. Did they recently convert a bunch of holdings into Euros?

I had read that they had a bunch of holding in US Dollars a while back.
That could be the reason for the major losses as the dollar is almost toilet paper at this point.

Kytim89October 27, 2011

If Nintendo wants the 3DS and Wii U to be successful then they must not only encourage their own developers and third parties to push their system and IPs to heights never before seen on a Nintendo console. This means that there must be a fresh perspective on new and old franchises in the future.

UncleBobRichard Cook, Guest ContributorOctober 27, 2011

Quote from: Kytim89

This makes me wonder if Nintendo might actually give in and release Operation Rainfall titles?

Where's that eye-rolling smiley?

Quote from: BlackNMild2k1

I had read that they had a bunch of holding in US Dollars a while back.
That could be the reason for the major losses as the dollar is almost toilet paper at this point.

Right. What's confusing me is that this report specifically says Euro. I'm trying to figure out why that's relevant now.

UncleBobRichard Cook, Guest ContributorOctober 27, 2011

Nintendo's got lots of money everywhere. ;)

Also, think of it this way.  Numbers are made up to make things a little easier...

Nintendo sells a system in Japan for 25,000 Yen.  When they launch the system, there's a (fake) exchange rate of 125 Yen: 1 Euro - so this translates to about 200 Euros... so they put a price tag of 200-250 Euros on it.

Four years later, the exchange rate is now 75 Yen: 1 Euro - putting that 25,000 Yen system at 333 Euro... but, of course, Nintendo can't just start raising the price of the system in Europe... they have to lower it - it's older, after all.

So, all of the stock they have built up in Europe, all the holdings, everything they have in Europe is now worth (made up numbers again) 37% less... and Nintendo can't just jack up prices to make up for it.

Of course, in this case, we're dealing with a 4-year old system - how much has the Euro dropped since the 3DS launched?  *and* Nintendo just did a massive price drop on the 3DS.  Not only did they lose money (assets, really) there (a warehouse full of 1,000 $250 3DS units - $250,000 just became worth $169,000), you also have to factor in the costs related to the dropping currency exchange... (again, made up numbers) - 1,000 3DS systems that are in a NA warehouse at launch are worth $250,000 - or, let's say an exchange rate of 100 Yen:$1, the warehouse is worth 25,000,000 Yen.  Now, we drop the price and the Yen gets stronger, say 75 Yen: $1, that warehouse is now worth $169,000 - or 12,675,000 Yen.  Bamn - doing nothing but sitting on stock, you just posted a 50% loss.  Obviously, the price drop was Nintendo's "fault" - but the changes of the Yen vs. other currency isn't really something they can do much about.

Quote from: UncleBob

Nintendo's got lots of money everywhere. ;)

That's my point. The euro hasn't tanked especially compared to the dollar, so I don't understand why they specifically said that unless it's just because of the general Eurozone financial crisis that's been a focus of the press lately.

BlackNMild2k1October 27, 2011

Maybe Nintendo was holding all European holdings in Greece... :o

Quote from: Kytim89

This makes me wonder if Nintendo might actually give in and release Operation Rainfall titles?

The exchange rate is probably the main reason we haven't gotten them yet, quite frankly. I don't see that changing.

But yeah, a lot of that is beyond NCL's control - the US dollar's in the tank and they'll need to fellate the Stonecutters to get anything done about the British pound.

CericOctober 27, 2011

I think were going to find today that:

1) Nintendo has had weak sells this quarter in the NoA Territory
2) NoE Territory on the other hand had the Strongest sales for this period but due to more unfavorable Exchange Nintendo made a fraction of what it would have just last year
3) A large part of the drop is also the 3DS Price Cut not being factored into original projection (Which was a loss if I read the story correctly.)
4)  Nintendo is confident that this holiday season will insure they are profitable for the Fiscal Year despite these losses (Skyward Sword alone will probably do most the work)

UncleBobRichard Cook, Guest ContributorOctober 27, 2011

Toyota has been in the news a bit regarding the strong Yen and how it's hurting them...
http://online.wsj.com/article/SB10001424052970203388804576612701734475580.html

oohhboyHong Hang Ho, Staff AlumnusOctober 27, 2011

It's even worse than that. Word has it Nintendo is going to post it's first ever Annual loss in the company's history.

Clicky.

My guess without doing alot more research in corporate accounting it that Japanese companies are required to bring in their earning back into the country unlike America where money is intentionally kept offshore in order to avoid tax by holding sums in tax shelters and inter-company loans via subsidiaries and shell companies. It makes currency changes real to Nintendo since they lack the ability to buffer it by holding money offshore which would lead to the previously mentioned shenaigans.

ejamerOctober 27, 2011

Hmm... 3DS flopped out of the gate and still doesn't have any "must own" retail software, prompting massive price cuts to try and spur sales. Wii has been a complete non-factor in 2011 with Nintendo putting all their eggs in the Zelda holiday basket. On top of that, factors that Nintendo don't control (global financial situation, currency exchange rates) did nothing to help.


So why is this news a surprise? What did Nintendo possibly do to deserve a profit this year? Investors will say that the sky is falling but that's nothing new either.


In the big scheme of things, this news probably doesn't matter. The company can survive a loss, and will probably bounce back - Nintendo's performance can't be much worse next year than it was in 2011.

CericOctober 27, 2011

Agree.  This isn't a real surprise thinking about it.  Some people argue Nintendo should use its War Chest.  Welp, here is Nintendo using its War Chest.

oohhboyHong Hang Ho, Staff AlumnusOctober 27, 2011

It's not a big surprise, but for Nintendo it's a loss of prestige and by extension, Iwata also shares. When a company can run for 132 years without an annual loss, when it does happen, that history makes it a big deal. Iwata should be sweating bullets at this point. We all know what happened to Gunpie Yokoi and his mistake was far less than this.

ejamerOctober 27, 2011

Quote from: oohhboy

It's not a big surprise, but for Nintendo it's a loss of prestige and by extension, Iwata also shares. When a company can run for 132 years without an annual loss, when it does happen, that history makes it a big deal. Iwata should be sweating bullets at this point. We all know what happened to Gunpie Yokoi and his mistake was far less than this.

Fair enough, and I agree that Iwata must be very concerned about how this reflects on him.


On the upside: Maybe it will finally be a good time to buy some souvenir Nintendo stock after the (rumored) loss is announced. It's been terribly overpriced for years.

Ian SaneOctober 27, 2011

Okay, I've got a bit of schadenfreude going here.  For years Nintendo's boneheaded decisions have affected us, their customers, but not them.  All their stupid obvious avoidable fuck-ups screwed us out of third party support but they still made a profit.  There was no real incentive for them to improve because they still made money.  I didn't want them to go out of business but I really wanted them to feel the pinch for once to force them to get their shit together.

Well here it is.  The arrogance of consistently making fistfuls of money while their fans deal yet again with an undersupported system and all sorts of unnecessary restrictions and limitations took them to 2011, when they released jack shit for their old systems and released a new handheld which also had jack shit for it.  This was the "we can do anything, we're industructible" attitude taken to its extreme.  The whole Wii seemed like a big "fuck you".  "We can released half-baked shit, refurbish the Gamecube and make no effort in attracting developer support and make MORE MONEY THAN EVER! HA HA HA HA HA!!"

It was going to bite them in the ass eventually.  It had to.  Now it has.  Good.  I feel Iwata ruined Nintendo and turned them into the exact sort of company I used to praise them for not being.  I would love to see his ass canned.

Kytim89October 27, 2011

@ Ian Sane

Amen. Nintendo needs to learn the meaning of "fan service." The other companies such as Sony, Microsoft, Apple and all the third parties atleast try to appease their customers to some extent. Granted that they to are money grubbers like Nintendo, but if any deals with any non-Nnitendo systems and games do they feel ripped off, cheated and abandoned?

broodwarsOctober 27, 2011

Quote from: Ian

I feel Iwata ruined Nintendo and turned them into the exact sort of company I used to praise them for not being.  I would love to see his ass canned.

In favor of who, exactly?  Who would you rather have running Nintendo corporate instead of Iwata?  I'm not overly fond of him myself, as I think he's allowed NoA to run the Wii branding into the ground by not releasing Wii software and he didn't do a good job of attracting 3rd party Wii support.  Plus, I find him very dull and unconvincing to listen to during speeches, though not as fake-sounding as Reggie.

That said, despite some lapses in judgement he's done a pretty good job with Nintendo in his tenure, and it's hard to imagine anyone else with the business skills and leadership to lead Nintendo forward.

Kytim89October 27, 2011

If NoA had not been allowed to run the Wii brand into the ground then do you think Nintendo's financial situation would be a little less severe?

broodwarsOctober 27, 2011

Quote from: Kytim89

If NoA had not been allowed to run the Wii brand into the ground then do you think Nintendo's financial situation would be a little less severe?

I don't see why not.  Over the course of the Wii's lifespan, we've missed out on occasional games from time to time here in NA, not just the Operation Rainfall games.  I'm talking about things like New Play Control Pikmin 2, Disaster: Day of Crisis, Fatal Frame IV, etc.  Some of these games were released in Europe in English.  Now, none of these would likely be big sellers for Nintendo in America, but at minimal cost to do so (Fatal Frame IV notwithstanding since that never had an English version) it would have been pretty easy for NoA to fill in some of those massive software gaps and keep the Wii just a little bit more relevant.  Depending on the additional costs for replication and marketing, I could see them turning a modest profit on these games.

And any profit NoA could have made but chose not to would have helped improve this financial report, especially since NoA is Nintendo's most profitable region.

Kytim89October 27, 2011

Quote from: broodwars

Quote from: Kytim89

If NoA had not been allowed to run the Wii brand into the ground then do you think Nintendo's financial situation would be a little less severe?

I don't see why not.  Over the course of the Wii's lifespan, we've missed out on occasional games from time to time here in NA, not just the Operation Rainfall games.  I'm talking about things like New Play Control Pikmin 2, Disaster: Day of Crisis, Fatal Frame IV, etc.  Some of these games were released in Europe in English.  Now, none of these would likely be big sellers for Nintendo in America, but at minimal cost to do so (Fatal Frame IV notwithstanding since that never had an English version) it would have been pretty easy for NoA to fill in some of those massive software gaps and keep the Wii just a little bit more relevant.  Depending on the additional costs for replication and marketing, I could see them turning a modest profit on these games.

And any profit NoA could have made but chose not to would have helped improve this financial report, especially since NoA is Nintendo's most profitable region.


I will bet my last dollar that home base is probably on the phone with Reggie right now telling him to get the ball wrolling and get as many of those games into north America as possible throughout next year. home base may not care, but if a couple of guys like us realize that the figure head of Nintendo's major market has fumbled the ball and contributed to a financial loss when it could have been aliviated then something will change. This is why I think we will get Operation Rainfall in 2012 to make up for the shortfall in profits.

CericOctober 27, 2011

Quote from: Kytim89

@ Ian Sane

Amen. Nintendo needs to learn the meaning of "fan service." The other companies such as Sony, Microsoft, Apple and all the third parties atleast try to appease their customers to some extent. Granted that they to are money grubbers like Nintendo, but if any deals with any non-Nnitendo systems and games do they feel ripped off, cheated and abandoned?

I don't agree about Apple but I'm going to leave it there.

I'm hoping Nintendo does end up negligible profitable.  In other word just enough profit to say they had one but its just above the margin of error.

I think the Wii was a great short term decision at the right time.  I don't think it was recognize as such and Nintendo didn't start the Transitioning to long term viability.

NoA needs a Shakedown.  For example People like Skylanders.  Nintendo has the only system with a Unique Portable Skylanders experience.  I would  make sure that people knew that the 3DS will let you take Skylanders on the go.

Online system is a joke to this day.  Granted it is better but it is still way to slow and Disorganized.  There should be a clear investment into UI study focus group testing with WiiU in all regions except Japan.  Its clear Japan idea of a UI and the rest of the worlds are sorely at odds.

If I was Iwata I would be afraid for my position as well.  I don't think Nintendo would let him go, as much as reallocate him to a lower position.  There is absolutely no excuse to be made for the amount of Hardware Nintendo has gotten out this generation for them to not be seeing good game revenue except mismanagement.

I have to agree NoA over Pruned the Wii.  With such a large install base every niche title should find someone to play it.

It may be time to let NoE and NoA do some homegrown development for there markets.

Note: This was written over the course of the last 5 or so responses.

broodwarsOctober 27, 2011

I think we could see The Last Story in NA in 2012, but I think that's about the extent our luck goes.  The time to release Xenoblade would have been alongside the European release, not 6 months to a year later.  And Pandora's Tower is a lost cause in NA, as it's generally viewed as the weakest of the 3 games and the one with the least marketable pedigree.

But I think the Last Story has a good shot considering how well Xenoblade seems to have sold in Europe and Nintendo's current financial free-fall.

Kytim89October 27, 2011

We might get every game if this financial free fall is as bad as the posts say it is. Xenoblade could still be released in spring of next year and Last Story and Pandora's Tower along side the European releases.

ejamerOctober 27, 2011

Quote from: Kytim89

We might get every game if this financial free fall is as bad as the posts say it is. Xenoblade could still be released in spring of next year and Last Story and Pandora's Tower along side the European releases.

I wish this was true but don't believe it. If anything, Nintendo of America will probably be even more risk averse since they can't afford to make another blunder and lose money on niche releases (even if they are limited print runs).

Ian SaneOctober 27, 2011

Quote from: broodwars

Quote from: Ian

I feel Iwata ruined Nintendo and turned them into the exact sort of company I used to praise them for not being.  I would love to see his ass canned.

In favor of who, exactly?  Who would you rather have running Nintendo corporate instead of Iwata?  I'm not overly fond of him myself, as I think he's allowed NoA to run the Wii branding into the ground by not releasing Wii software and he didn't do a good job of attracting 3rd party Wii support.  Plus, I find him very dull and unconvincing to listen to during speeches, though not as fake-sounding as Reggie.

That said, despite some lapses in judgement he's done a pretty good job with Nintendo in his tenure, and it's hard to imagine anyone else with the business skills and leadership to lead Nintendo forward.

I don't know who.  But I do know what kind of Nintendo I want to see.  The whole reason I became a Nintendo fan was because of their commitment to quality.  They made the best games in the world.  So I would like to see someone commited to that.  Lazily reusing elements from Wii Sports Resort in Pilotwings Resort does not reflect a commitment to quality.  Neither does shoehorning unresponsive controls into games because of the marketing gimmick potential it has.  I also want someone who truly respects their customers and wants to please them.  Nintendo does not come across as caring if their customers are actually content.  It's just as long as they get their business.  So I want someone that wants to please us.  They want to provide us with options and ensure that the game selection on their systems truly covers all bases and has the top third party games on it.

But who is this person?  I don't know.  They need someone who adores videogames but also has good business sense.

Luigi DudeOctober 27, 2011

Quote from: Ian

It was going to bite them in the ass eventually.  It had to.  Now it has.  Good.  I feel Iwata ruined Nintendo and turned them into the exact sort of company I used to praise them for not being.  I would love to see his ass canned.

Looks like I need to post the chart again.
http://img.photobucket.com/albums/v287/luigidude/nx8dqh.png

This is why Iwata isn't going no where.  He's made Nintendo more money in less then a decade then the entire company had made in it's over 100+ year existence.  Unlike Western companies that might fire someone for less, Japanese companies are a little more loyal than that.

Plus the whole reason for Nintendo's loss is only two things, the 3DS underperforming and Nintendo getting f*cked over by the exchange rate because of how weak the Dollar and Euro are at the moment compared to the Yen.  One of these things Iwata has no control over unless he starts paying for political campaigns in America and Europe in order to try and get people elected who might be able to fix this problem, but I don't see him doing that.

So the reason for this loss that Iwata actually does have control over is the 3DS, which he actually has turned around with the price drop, which is why 3DS sales have increased around the entire world since then.  The only problem is they lost a lot before the price drop, and after the price drop they're selling the system at a loss, which isn't helping on the hardware side of things.  Of course with Mario 3D Land, Mario Kart 7, and in Japan, Monster Hunter, the 3DS software sales should start picking up.

In order for Iwata to be fired, Nintendo would have to take this type of loss for at least several years in a row.  With 3DS sales on the rise with big titles as well, the only thing that would do that is if they completely mess up the Wii U launch, but after what's happend with the 3DS, you can bet they're going to handle the launch of the Wii U much better then the 3DS because they now know they can't release an overpriced system with no big titles.

Quote from: Ian

I also want someone who truly respects their customers and wants to please them.  Nintendo does not come across as caring if their customers are actually content.  It's just as long as they get their business.  So I want someone that wants to please us.  They want to provide us with options and ensure that the game selection on their systems truly covers all bases and has the top third party games on it.

But who is this person?  I don't know.  They need someone who adores videogames but also has good business sense.


In Japan, Iwata is this person.  Everything you mentioned, Iwata has done for the Japanese Nintendo fans.  Iwata has given the Japanese Nintendo fans a wide variety games, create lots of new IP's for them, and gotten major third party series like Dragon Quest and Monster Hunter.

Most of your complaints come down to wanting NOA to treat its fans better, but getting rid of Iwata wouldn't do that.  Reggie's the one who tells Iwata how the North American market is and what he feels the fans will like.  If Iwata was fired, he'd just be replaced by another Japanese executive at the company who Reggie would say the exact same things he told Iwata about.

oohhboyHong Hang Ho, Staff AlumnusOctober 27, 2011

I don't see Iwata getting fired over this. If I did, I would have said so long ago. He is more than likely going to take another haircut on his salary taking him down to the bread line. The damn ironic thing is that Iwata had moved up the 3DS in order to prevent this from happening in the first place, but poor planning and that E3 price shock had double down on his problems.

Europe has traditionally been overpaying for decades when it came to videogames. Nintendo's assumption was that could be continued indefinitely. America relative to the rest of the world has been underpaying for the same period.

No doubt Iwata is an excellent engineer and manager, but the 3DS and the WiiU are the first thing that are completely his and his alone. I have no doubt that Hiroshi Yamauchi had advised Iwata during the last transition or had a game plan that Iwata could follow in advance. Hiroshi Yamauchi was a businessman first and a creative second. Iwata is the best they could find inside or outside(Was never going to happen) the company and he still remains the best choice. Iwata needs someone behind him to steady the boat as it were. Hiroshi Yamauchi had creatives like Shiggy and Gunpie to level him. Iwata lost his equivalent when Yamauchi finally left the board in 2005. Yamauchi had made one last appearence for the company with the quote 'if it succeeds, we rise to the heavens, if it fails, we sink into hell.' in 2004.

The 3DS was a very reactive move in a company that has traditionally proactive, but so far the WiiU has been proactive rather than he latter when it has come to the machine itself. Whether it has a proper business plan to follow through on remains to be seen.

UrkelOctober 30, 2011

Quote from: Ian

Okay, I've got a bit of schadenfreude going here.  For years Nintendo's boneheaded decisions have affected us, their customers, but not them.  All their stupid obvious avoidable fuck-ups screwed us out of third party support but they still made a profit.  There was no real incentive for them to improve because they still made money.  I didn't want them to go out of business but I really wanted them to feel the pinch for once to force them to get their shit together.

Well here it is.  The arrogance of consistently making fistfuls of money while their fans deal yet again with an undersupported system and all sorts of unnecessary restrictions and limitations took them to 2011, when they released jack shit for their old systems and released a new handheld which also had jack shit for it.  This was the "we can do anything, we're industructible" attitude taken to its extreme.  The whole Wii seemed like a big "fuck you".  "We can released half-baked shit, refurbish the Gamecube and make no effort in attracting developer support and make MORE MONEY THAN EVER! HA HA HA HA HA!!"

It was going to bite them in the ass eventually.  It had to.  Now it has.  Good.  I feel Iwata ruined Nintendo and turned them into the exact sort of company I used to praise them for not being.  I would love to see his ass canned.


AHAHAHAHAHAHAHAHAHAHAHAHA

I was going to make a sarcastic troll post of a typical Pretendo fan celebrating this news and how Nintendo was going to get "bit in the ass" for ignoring the "hardcore gamers", but I was too busy. Trolling takes effort, y'know?

But this post... hahaha. It's almost word for word verbatim what I was going to say. Then again, spambots are predictable.

Chozo GhostOctober 31, 2011

Isn't Sony also based in Japan? So how is it that this exchange rate stuff hurts Nintendo really bad but not Sony? Microsoft is based in the U.S. so I guess they are probably immune to it.

CericOctober 31, 2011

Quote from: Chozo

Isn't Sony also based in Japan? So how is it that this exchange rate stuff hurts Nintendo really bad but not Sony? Microsoft is based in the U.S. so I guess they are probably immune to it.

I wouldn't say Immune but, from my understanding Sony has a more sales in Japan plus, they have other divisions they can do some accounting tricks with.

Same for MS, most of there sales is in the US and yet again more divisions, accounting tricks, yadda yadda.

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