Jansky8 on 26 January 2012
| 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... |
Hedge against Yen volatility using options perhaps?
