Sony and Nintendo feeling the pinch

[TheBigFatJ]

Passenger57 said:

I predict that the entire VG industry slowdown this year especially if Nintendo pulls back on sales outlook. I might have to change my prediction that the Wii will end up at 70 mill by the end of this year.

 

You don't understand what happened here -- Nintendo's sales are fantastic.  Better than they've ever been, in fact.  The YEN is strong and that is why they're feeling the pinch.  If the yen is 15% stronger relative to the Euro and the USD then sales of their consoles bring in approximately that much less revenue.  And if your profit margin is around 20%, that's going to destroy your profit numbers.  Because of this unforseeable reason, Nintendo and Sony missed projections.

Microsoft sales have been fantastic as well.

The maker of Bravia TVs and Cyber-shot cameras reiterated a forecast it unveiled last week for a record 260 billion yen ($2.9 billion) operating loss for the year to March, a big swing from the 475 billion yen profit logged a year earlier.

Sony, on the other hand, has products no one wants to buy AND an unfavorable exchange rate.  These numbers are outrageously bad.