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Forums - Sales Discussion - BBC Reports: Nintendo profit concern over currency market gyrations

Seece on 21 June 2010

Europe being Sony's best region this xmas, doesn't look good. Nintendo have America to fall back on at the least.

But I don't think Nintendo need to worry, they're still going to make a healthy profit, they have the means to ride this out, as do Sony, but they'll have less leg room in terms of pricing in the immediate future.

Microsoft will see most sales in the US this xmas, so again, not too much to worry about, about 40% of sales will come from Europe though so they're not completely immune.

They all rode it out last time, they'll do it again relatively unscathed.



 

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silicon on 21 June 2010


silicon on 21 June 2010
kowenicki said:

this is what is causing the issue...

And over the same period Ninty stock has gone up...


Time to short Ninty while their stock is still inflated from 3DS hype? =P

 

Seriously though, I don't know much about economics, but 5-10% fluctuations in a week is not a good thing for a currency.



Grimes on 21 June 2010

Those expecting price cuts on Sony or Nintendo products in Europe better think again.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

Faxanadu on 21 June 2010

Companies choosing not to do FX hedging causes them to be exposed to FX risk.

Quite simple actually.



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Grimes on 21 June 2010
Faxanadu said:

Companies choosing not to do FX hedging causes them to be exposed to FX risk.

Quite simple actually.


It may be simple in theory, but can be phD level hard in practice.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

Squilliam on 21 June 2010

I guess thats a difficult one for Japanese companies especially who have a lot of their cost base in Yen whilst much of the customers deal in Dollars or Euro. Microsoft is somewhat better off considering that the majority of their market deal in their own currency and they have been relatively stable and their manufacturers peg their currency against the dollar.



Tease.

Pyro as Bill on 21 June 2010
RolStoppable said:
kowenicki said:

I didnt really post it for the second half of the article...

Its the first half.. Sony (more so) and Nintendo profits will have been hammered with the currency movements over the last month or so.

The euro hit an 8 yr low recently against the Yen.... thats lower than it was when Sony blamed it for making tham have huge losses.

So any Sony projected profit is under threat again and Nintendo profits will be hit...

MS isn't immune either as the Dollar has also gained againt the Euro... just not by as much.

The timing of this article is a little bit odd. I could be wrong, but I think all those Iwata quotes were taken from Nintendo's investors briefing which was quite a few weeks ago.


The quotes are taken from an interview at E3, the video is on the site. You're right to suspect 'Nintendo is doomed' from this reporter though.

September 2009

"Both the 360 and PS3 have a good future. It is unlikely either will be replaced by a new system in the next five years (2014 WTF?) and the manufacturers have been keen to emphasise new developments in their control system as well as showcasing a range of future games. The future of the Nintendo Wii, in its current form, is less certain. In the past, Nintendo has declined to comment on the Wii's future, saying that it was focusing on "taking all the experience we gained over the past five years and applying that in a way that creates extremely deep game play experiences that takes advantage of motion control".

June 2010

"Microsoft has launched a slimmer and more powerful Xbox 360."



Nov 2016 - NES outsells PS1 (JP)

Don't Play Stationary 4 ever. Switch!

sethnintendo on 22 June 2010

If Nintendo is taking a hit then Sony is definitely taking a hit in profits due to currencies fluctuation.  Europe isn't looking too hot right now and they need to get their act together.  The euro is looking pretty weak now compared to what it used to be.  If the dollar stays strong/strengthens more then this should help both companies for USA region.  Anyways, the whole global economy is in a rut and I don't see it getting too much better for certain regions anytime soon.  USA is still way off from recovering and Europe is even further.



megaman79 on 22 June 2010

Who cares, Nintendo will ride out the storm. They did just launch a new handheld after all.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.