By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Train wreck on 27 October 2011
Edit Thread
Joelcool7 said:
Train wreck said:
Nintendo is not in a position to be a hedger of currencies because:

And Nintendo business is deteriorating, if it wasn't, they would not be revising everything. That's not a currency problem. They should be worrying about how to get back to its mid wii days as opposed to trying to alter currencies to make their business look good.


Thanks for your input. Anybody else have any ideas how Nintendo could lessen the blow or find a way around the strong Yen?

You are asking the same question again expecting a different answer, thats the defination of insanity.  There are alot of smart business people who work for nintendo and I am sure if their was a way to "lessen the blow" of a strong yen, they would have found it.  You are not going to find a better answer.

Also yah if 80% of Nintendo's losses are attributed directly to the Yen then they are not doing as horrible as it looks. I wouldn't say they aren't deteriorating because we all know they are. But 3DS has now sold more then the origional DS did at this same point in time during its life span. Hardware sales are way up, the problem is the hardware is selling at a loss but Nintendo has stated that they aren't losing much on every unit. A major other reason is while hardware sales are threw the roof software sales are dropping. Without software sales to make up for the hardware loss Nintendo is going to lose money.

If curreny changes was the only aspect of Nintendo business that prevented them from making a decent quarter, then investors would be piling into the stock because their outlook would be .  Yes the 3DS outsold the DS in the same time frame, but lets take out the fact there was a 33% price cut. 

But market share wise and Nintendo's ability to sell there products appears to be back on track. The loss of money on each unit was necessary to bring 3DS in line with DS. The lack of software sales is also not entirely Nintendo's fault, third parties were supposed to continue launching software on a regular basis during this time frame. But third parties got scared and jumped ship (I'm talking about you UbiSoft) this wasn't Nintendo's fault entirely.

Can you post a link where 3rd parties were supposed to continally launch games for the system?  Companies dont get "scared" its called making sound business decisions.  Why would companies throw good money after bad, especially for a faulty launch.

In the end I don't doubt Nintendo is trying really hard to lower costs and regain profitability. I also don't think they can be held responsible for most of their losses. 80% of those losses had nothing to do with Nintendo's performance, there is nothing Nintendo could have done to prevent these losses. Then I'd suspect about another 5-7% at least is due to 3rd party publishers and their in ability to sell software, with the 3DS numbers there is no reason that these publishers should not be releasing new great software every month. Then the remaining 13-15% is soully Nintendo's fault.

Saying that there is nothign nintendo could do is false.  Currency flux doesnt happen in  a straight line.  There is no strong Yen problem in japan, they could have upped sales in that reigon and rely less on foreign markets.

But judging from the numbers I am fairly optimistic. I mean PS3 lost Sony over 2-billion dollars in its first year on the market 2007. If Nintendo only loses 200-mill launch year I'd say they are not in trouble at all, I suspect next year 3DS will become profitable and WiiU will lose Nintendo some money. But I'd fully expect Nintendo to turn everything around by 2013 if the Yen doesn't continue to grow this fast!