as Dow Jones plummets, and the subprime saga continues to unfold, there is a real chance the yen carry trade will really unwind for real.
the yen carry trade (borrowing in yen, buying other currencies for higher return) is extremely important. the unwinding could have some extremely serious effects--from today's news, it is entirely possible that the yen will hit 110 in a month, if not higher.
Nintendo, with huge holdings in US$, will suffer hugely as a result of a depreciating US. its exposure appears to be more so than many other japanese exporters, since as far as i know, their entire cash holding is in US$ to take advantage of the higher interest rate (hence, they are part of the carry trade).
the implications of course would be far-reaching; nintendo themselves will do fine, with increasing Wii and software sales. but its stock might suffer in the short to medium term--a correction could be on its way.
in the long term, nintendo still has lots of gas left. there could be bargains to be had if this market correction is for real.
the Wii is an epidemic.
