Weak US Dollar Hurting Nintendo?
It looks as if Nintendo's rose-tinted glasses are starting to slide off.
KBC Securities Japan slashed Nintendo's 12-month price estimate by 30% while also reducing the overall forecast for sales in general:
Nintendo in January increased its forecasts for sales and operating profit for the year ending March 31 for a third time after the Wii outsold rival game players. KBC reduced its outlook for Nintendo's net income next fiscal year by 8 percent to 391.6 billion yen, DS console shipments by 6 percent, and Wii software sales by 5 percent.
As Fred Schneider of the B52's would ask, "Who's to blame when situations degenerate?" Well, in this instance, it seems to be a combination of the weak US dollar and a peak in overall market sales:
The new estimates are based on an exchange rate of 100 yen to the dollar, compared with a previous assumption of 105 yen, the brokerage said. A stronger yen reduces the value of overseas earnings when repatriated by Nintendo, which gets most of its sales from overseas.
Considering that Nintendo has just been downgraded from a "Buy" to a "Hold," and that there may be a chance that Nintendo really has hit a market peak, do you think that this gives some credibility to wunder-analyst Michael Pachter's assertions that 2008 is really the year of the Playstation3?
Nintendo's Rating Cut at KBC on Slower-Growth Concern [Bloomberg]
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Posted to Video Games on 21 March 2008
· Comments (4)
Other stuff like this: analysts, forecast, market, nintendo, wii
Yeah, but doesn't the weak dollar affect Sony in the exact same way that it would affect Nintendo?
I don't care what Michael Pachter says, no year will be the year of the PS3, the 360, maybe but never the PS3.
Yeah, year of the 360. maybe when they make a 360 that doesn't Red Ring of Death. Please.
Mine hasn't RROD'd, both of mine haven't [I upgraded to an elite, and experienced no problems with my launch console nor this one either]
I'm one of the lucky 75%-85% of people who own them, of corse with the intarweb, you only hear about the consoles that do fail, as opposed to the vast, vast majority that don't..
The weak dollar will affect sony, but Sony have a lot more liquid assets in Europe and wherever else, whereas Nintendo is still quite strongly asian marketed..