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Forums - Sales Discussion - Relief for Ninty and Sony? Improving exchange rates (update)

theprof00 on 01 December 2011

good news for our ironlanders



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MARCUSDJACKSON on 01 December 2011

lets hope this continues.



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Goddbless on 01 December 2011

That's a good start and it helps even more for this time of year. If they're lucky this trend will continue. I think both companies need this just as much.



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DeadEye on 01 December 2011

Good news for Nintendo. Hopefully this continues for them.



Zlejedi on 15 December 2011
kowenicki said:
not so great again now...

Euro exchange rate is back down to a pretty painful 101.

So Dollar still on track, but the Euro is well below Nintendo and Sony forecasts. Hefty currency losses in those Euro regions at the time when sales are the highest... not good news.


Euro/USD is now nearing to 1.30 so whatever Yen is losing against dollar is countered by failing euro for Yen/Euro pair.



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Zlejedi on 15 December 2011
kowenicki said:
Zlejedi said:
kowenicki said:
not so great again now...

Euro exchange rate is back down to a pretty painful 101.

So Dollar still on track, but the Euro is well below Nintendo and Sony forecasts. Hefty currency losses in those Euro regions at the time when sales are the highest... not good news.


Euro/USD is now nearing to 1.30 so whatever Yen is losing against dollar is countered by failing euro for Yen/Euro pair.

er... what?  I dont really understand that sentence... but

The Euroto Dollar exchange rate is utterly irrelevant in the context of this thread.

This is about the Yen/Dollar & Yen/Euro exchange rates and their effects on Japanese exporters.

All that matters is that the Yen/Euro is at an almost record low (strong Yen to Euro ratio) and the Yen/Dollar hasnt really improved much recently.

I repeat, this is about Japanese exports to Europe and the US.  

Sorry I assumed you actually know what currency pairs are:

http://www.instantforexincome.com/currency_pairs.html



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Seece on 15 December 2011
kowenicki said:
and...

Sony loses about 6 billion yen of annual operating profit, or sales minus the cost of goods sold and administrative expenses, for every 1 yen decline against the euro.

Christ that's a lot 0_o, how much has it dropped over the last fortnight then?

Just as well Vita is coming out in Japan this holiday, should be some hefty pure profit from that.



 

Zlejedi on 15 December 2011
kowenicki said:
Zlejedi said:
kowenicki said:
Zlejedi said:
kowenicki said:
not so great again now...

Euro exchange rate is back down to a pretty painful 101.

So Dollar still on track, but the Euro is well below Nintendo and Sony forecasts. Hefty currency losses in those Euro regions at the time when sales are the highest... not good news.


Euro/USD is now nearing to 1.30 so whatever Yen is losing against dollar is countered by failing euro for Yen/Euro pair.

er... what?  I dont really understand that sentence... but

The Euroto Dollar exchange rate is utterly irrelevant in the context of this thread.

This is about the Yen/Dollar & Yen/Euro exchange rates and their effects on Japanese exporters.

All that matters is that the Yen/Euro is at an almost record low (strong Yen to Euro ratio) and the Yen/Dollar hasnt really improved much recently.

I repeat, this is about Japanese exports to Europe and the US.  

Sorry I assumed you actually know what currency pairs are:

http://www.instantforexincome.com/currency_pairs.html


No need to be such a smart arse.  I know what curreny pairs are... but I dont see how that is helping sony to any great degree when we are talking about revenue from selling hardware offshore.  I am sure Sony hedge as much as they can, but are you suggesting they are taking even more risk by hedging ALL of their revenue on currency bets?  I doubt that is even possible.

Sorry I'm afraid I'll have to be smartass again.

If Euro to USD exchange rate was constant then Yen to dollar exchange course going up would automatically mean that Yen to Euro rate is going up to but since Euro to USD is falling down it means it negates that movement.



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Aprisaiden on 15 December 2011

If these numbers persist then alot of Japanese exportors are going to be in trouble, personally i am amazed that we haven't seen the Japanese government intervene properly (i know they have thrown some money into the market a few times, but what they need to do is really find some way of making there own exportors more competive before major companies begin to collapse)



Kynes on 15 December 2011
Aprisaiden said:

If these numbers persist then alot of Japanese exportors are going to be in trouble, personally i am amazed that we haven't seen the Japanese government intervene properly (i know they have thrown some money into the market a few times, but what they need to do is really find some way of making there own exportors more competive before major companies begin to collapse)


The only thing they can do is to increase the monetary mass, printing more yens, creating inflation and bubbles. I'm not sure that a currencies war is desirable.