US dollar falls to 14-year low against the yen

[NJ5]

perpride said:

NJ5 said:

perpride said:

NJ5 said:

perpride said:
Why exactly does Nintendo need to watch out? Aren't they like beyond profitable?

Yeah but this can reduce their profits substantially. I don't mean that it will get them into financial trouble, but it's definitely something to keep in mind when pricing products and planning future price cuts.

 

 

OK could you dumb the article down a bit? I don't exactly understand why the yen gaining strength hurts Japanese companies.

Yen gaining strength means other currencies are worth less yen. Japanese companies have a lot of their expenses in Yen, and they report fiscal results in Yen, so this hurts profitability.

Basically when you're an importer, it's good to have a strong currency. When you're an exporter, it's the opposite, you want a weak currency. Japan's currency has strengthened immensely in this recession.

 

So in other words even more downsizing for Sony?

Maybe... it certainly doesn't help when revenue from the US is 4% lower than expected after converting it to Yen.

It's not like a disaster or anything (a disaster was when it went like 20+% down last year), it's just one more problem.