kowenicki said:
Mr Khan said:
"Hasn't taken sufficient measures to combat the currency problem"
What precisely can they do? Short of lobbying the Japanese government to do something about it (which they have been trying to do to no avail).
The problem with the Yen is too much savings. Supposedly upwards of $300 billion in this country is kept in cash (what we in America would call "stuffed under a mattress"). If the Japanese incentivized spending better, the problem would go away, but there is little Nintendo could do short of jacking up prices across the board abroad, which would just lead to reduced revenue anyway (though they could get more profit per unit, so if they decreased production volume...)
The point is it's very hard to legitimately criticize Nintendo's position vis-a-vis the Yen ("legitimately" meaning, criticize with a workable solution in mind).
Perhaps they should just move all their Japanese operations except domestic distribution out of the country, but then that would create huge HR problems... |
Whilst I agree with you... you saying "to no avail" is wrong. The Japanes have intervened on their currency massively and on a number of occasions in the last year or so. There is not only nothing more Nintendo can do, there is nothing more the Japanese government can do.
It is equally attributable to the weakness of the Euro and Dollar as it is to the strength of the Yen. It has improved a little in recent days so there is some light there.
And yes... many Japanese manufacturers are basing more and more of their operations abroad.
The Yen continues to be a massive problem though as you will see when Sony release their numbers next week and make these Nintendo numbers look great.
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heh, i thought i worded that sentence poorly. I meant that the Japanese efforts have been to little avail, not the efforts of Japanese companies to get Japan to try to do something
The dollar i think could see a turnaround in a couple of years (barring any major catastrophes), since the economic fundamentals in America seem to be lining up, but the Euro is going to be a mess for some time to come, unless Europe acts quickly (odd for me to say that, of course, as the leftist in me is quite against austerity)
Or the fairy dust and scotch tape holding the Japanese system together could come apart and drag the Yen down, but that would just be horrible for everyone
