Email: Nintendo losing money on each 3DS sold?

Why do you keep saying this?

There were plenty of reports which showed that the unit only cost about $100-$110 to manufacture:

 

http://www.isuppli.com/PublishingImages/Press%20Releases/2011-03-28_Nintendo_DS.png

 

That was almost a year ago.

 

The only way they’d be losing money would be on the units sold in America, and that’s only because of currency conversion.

 

However, the units sold in Japan wouldn’t have this issue. And so when you’re questioning why in Japan they’re including Mario 3DLand with a system that is “already” losing money on each unit sold — based on the evidence I’ve seen, it’s just not true there.Iwata said it was true in an investor’s conference. I would say he knows more about the situation than you do.

Of course, the 3DS is not losing money NOW. But when the price drop occurred, it most definitely did. Nintendo’s financial statement really reflects this. Blaming everything on the currency exchange is denial of the big picture going on. Nintendo will not lose money because of sales in the United States. Why do business there if they are just going to lose money? Its why saying ‘currency exchange’ to explain Nintendo’s financial house being on fire doesn’t hold any water.

The currency exchange rates were also bad during the Wii era as well. Yet, that didn’t stop Nintendo from making hand over fist in record profits.

Nintendo is sacrificing a ton of money to get the 3DS to survive. It may not be on the level of an Xbox disaster, but it is a disaster nonetheless.