Impact: This is just one of many signs of tough times at Nintendo. Unlike many companies in the video game space, Nintendo, despite its ups and downs, has been a consistently profitable company. This makes the current losses more alarming to shareholders. Nintendo investors have certain expectations and are not tolerant of losing money. In the short term, there is no danger of Nintendo going out of business. The company has a large war chest of assets including substantial cash in the bank. Long term, Nintendo faces many strategic issues, however, not too much should be read into these short term cuts. This is a company that focuses very much on the bottom line and that is clearly what is going on here.