Why I think the PS3 won't be discontinued (and why I may be wrong)

[NJ5]

scottie said:

NJ5 said:

3- The Japanese government or central bank will probably intervene at some point to prevent the Yen to strengthen any longer... Japan is an export-dependent economy, and all of their exporters are suffering due to the Yen's strength. However it's uncertain whether it would be much up from the current level.

 

Could you run that one by me again, I'm not very good at economics.

 

The way I see it

The strength of a country's economy is a reflection of how well that country is doing. I thus can't see why the central bank would try to saboutage this.

 

 

I also am confused by the three statements below

* The Yen is doing very well

* The majority of Japanese countries are export companies

* Japanese export companies are doing badly.

Surely if the majority of Japanese companies are doing badly, then the value of the Yen would fall?

- For now, the Japanese economy is doing better than the American one.

- American and European banks have injected massive amounts of capital into the financial system which also makes the dollar/euro less valuable.

- The NA/EU central banks have been cutting interest rates in order to stem the possibility of deflation, whereas the Japanese interest rates were already pretty low so they can't go much lower.

It's going to take some major measures from the Japanese central bank to weaken the Yen, but I think they'll do it. I just don't know to what extent. They have said they're uncomfortable with the dollar below 90 yen (not a good level for Sony but slightly better than the current one).