I don't think we should worry about Nintendo's profits too much... After all, in the fiscal year which just ended, they made about the same profit that Sony did during PS2's whole prime time (2001-2006), even with a small Wii userbase. Their growth forecast is conservative IMO, as they're based on already conservative software sales forecasts which they will handily beat.

According to my magical watch of wonders....Nintendo has atleast 36+ years of raking in the dough.

Nintendo has always made a profit, even during the gamecube days, and now their making record making profits from the wii and DS

"But not all is jolly in Nintendo-land. The company’s forecasts for this year are far less impressive, with single-digit gains expected for both revenues and operating profits in the current fiscal year."

I'm not so good with the economics..........but isn't this a good thing (assuming single digit is referring to less than $10 million increase, over whatever they got this past year)?

In japan, I became to be really worried about 'LOW' sales of "NEW" DS games.
By example, I expected Taiko no Tatsujin to do min 100k sales for the first day but it did only 32k! It's been 9 months when the first released and now with this one, there are more and more DS and it's doing far less.
This isn't the only example.
I'm thinking to FFIV too. FFIII did the million when FFIV hardly managed to sell 600k..
Same with Kekkaishi DS 1 and 2, English training 1 and 2.. Mario and Sonic olympics did only 300k.
Kanken DS sold 700k when the second sold only 200k.
All these are little signs which mean that there will be more less million sellers there..
Expect 25 millions DS, if Nintendo release a brand new Animal Crossing with more fun and more contents and graphically better, expect that it will not sell more than 2 millions.
Nintendo have to do something about this. I'm thinking that they letting down the DS for the Wii.

First of all, Wii Fit is already out in Europe. I know because I have one.

Second of all, IF some analysts really think PS3 is going to close the gap this year, they are terribly wrong. At the end of this year Wii's market share will be about same (or even bigger) as PS3's and XO's COMBINED. Please quote me on this in January 2009 if you doubt it.

 IMHO this article is badly written, or in other words, just sucks.

^Those analysts just don't know what they are talking about really. I mean, how is it even mathematically possible? Even if the Wii stops selling completely, you can't really sell 12 million in 7 months.

Sales rates take time to increase, even if something gets increasingly popular.

The single digit growth projection is less than the projected and actual growth from the previous year. Grow too fast and investor expectation can soon become unrealistic. When unrealistic expectations go unmet, regardless of how unrealistic they may be, the company's stock takes a hit even when the fundamentals have remained unchanged.

Case in point: NTDOY took a pretty decent hit following the release of the annual projections. If the projections had been more optimistic, the opposite would have happened. I'm going to continue to adjust my stake through 2008, but I'll probably end up taking everything off the table by Q1 2009 unless estimates are revised upwards due to a new catalyst.

If the stock market ran purely on investor logic, anyone who read the company financial reports would be posting consistent, outrageous quarterly gains with their portfolios. Unfortunately, this is not the reality.

This guy sounds like Pachter from 2-3 months ago.

Bullshit............................... Nintendo always release lower expectations when the fiscal year begins.
They raised many time their forecasts during the last year.