Because the annual financial forecasts are significantly impacted by the changes in the anticipated foreign currency exchange rates, we have revised the annual sales forecast to 1 trillion 820 billion yen and the operational profit to 530 billion yen. Since we are anticipating to incur foreign currency reevaluation loss when we reevaluate the assets and liabilities that we hold in currencies other than Japanese yen without forward exchange contracts, we now anticipate the recurring profit to be 370 billion yen, and as a result, the net profit to be 230 billion yen for the fiscal year.
So, due to the rapid rise in yen’s appreciation, we are now anticipating lower results than the ones we announced the last time.
We can expect more sales of software in the next fiscal year than in the current year. With what kind of software is Nintendo going to achieve this goal? Well, it will be shown at E3 to be held in the U.S. this June.
Those who are concerned that Nintendo business may peak out this fiscal year and may shrink from the next year are also basing their concerns upon the past platform cycle theory. Especially in the case of DS, when you apply this five-year cycle theory to a platform that has been through its 5th holiday season since its 2004 launch, a concern that DS business may slow down in the next fiscal year may appear to be logical at first glance. Since technology continues to evolve, I do not think any hardware can enjoy eternal life. Someday, we will need a new platform for sure, and of course, Nintendo is always preparing for that. However, now that our customer base has expanded this drastically, we do not think it appropriate to conclude that past platform lifecycle theory can and should be applied to the current generation.
The former president of Nintendo, Mr. Hiroshi Yamauchi, often told us, “In the entertainment business, there are only heaven and hell, and nothing in between,” and “as soon as our customers bore of our products, we will crash.” We’d like to bear his words in our hearts and try to promptly introduce you to a variety of new proposals one after another that offer customers fresh surprises in order to overcome today’s difficult economic situation.
http://www.nintendo.co.jp/ir/en/library/events/090130/02.html
“In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.” Hiroshi Yamauchi
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