The Japanese Market is collapsing

[starcraft]

FishyJoe said:

famousringo said:

FishyJoe said:

Holy crap, the Japanese market is down almost 5% today. The US dollar is at an all time low. I have a bad feeling about this. Nintendo and Sony are falling too.

With the dollar so weak, it makes Japanese products very expensive in the US. Anyone hoping for a price cut from Nintendo or Sony better not hold their breath.

Consequently, this will make the Xbox 360 very cheap outside of the US.

Would it really? Aren't they built in China like everything else?

They are paying for them in US dollars to China, but are being paid in Euros or whatever country they are sold in. So for product sold outside the US, they are paying less to produce and taking more in dollars.

And as the Chinese currency is quite closely pegged to the $US, their relavtive costs here shouldn't go up much at all, whilst their income from Europe sales will probably stay high even after the price cut.  On the other hand, Sony and Nintendo (ok maybe just Sony) would have to eat some loses in order to cut again in the USA.