| Soundwave said:
Doesn't Nintendo have a fair bit of US currency? It would be pretty silly IMO to keep everything in Japanese yen, especially when Japan plays basically no role in the production of these consoles anymore. The GPUs are designed by American companies and then manufactured in China. If not, neither Sony or Nintendo can really compete with MS, who presumably has most of their cash in American dollars. MS could go get the higher end GPUs from AMD without worry of whatever the yen costs. Doesn't really affect them. |
To be completely honest, currency hedging strategies on the scale that companies like Nintendo are involved in is far beyond my understanding ...
With that said, it is not necessarily the actual hardware costs that will be reflected in the increased cost of the systems. For Nintendo and Sony the declining value of the American dollar and Euro will translate into substantially lower licensing fees and software revenues; and Sony/Nintendo will be unable to increase software costs to compensate, and will have to reduce losses/increase revenues from hardware to make up for these lost revenues.
