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Forums - Sales Discussion - Can someone (good in economics) explain some things to me?

Who would have thought we have some many economic majors on VG chartz



PS3, WII and 360 all great systems depends on what type of console player you are.

Currently playing Call of Duty Modern Warfare 2, Fallout 3, Halo ODST and Dragon Age Origins is next game

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blackstar said:
1) japanese companies get paid by the Yen,,,, 3 quarters of sony sales are outside japan ,
when the Yen rise against the Dollar and Euro they get less money from the sales outside japan

 

i don't get it.. please make it more simple lol



bugrimmar said:
starcraft said:
1) The strong currency you are referring too is the Yen. If it is high versus the dollar and Euro, then me paying Sony $400 actually gives them less than if the Yen is low versus the dollar and Euro.

that's what i don't understand. can you detail it to me?

If I (as Sony) know that every Yen = One Dollar (it doesnt, but as an example) then everytime a person pays $400 for a PS3, I (sony) get 400 Yen..

But if the Yen gets stronger (rises) and it becomes 1 Yen = 1.2 Dollars (as an example), the situation changes.  When a US consumer pays $400 for a PS3, now I (sony) only get less than 400 Yen.  Around 320 Yen I think.

 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

OOH... i get it now!

then.. why doesn't the japanese government just intentionally lower their currency?



Cause that can cause inflation which is whats happening in the US.



PS3, WII and 360 all great systems depends on what type of console player you are.

Currently playing Call of Duty Modern Warfare 2, Fallout 3, Halo ODST and Dragon Age Origins is next game

Xbox live:mywiferocks

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bugrimmar said:
OOH... i get it now!

then.. why doesn't the japanese government just intentionally lower their currency?

Because they import a lot of ressources which they pay in foreign currency usually, so they get more foreign currency with the same amount of Yen therefore they pay less for their imports. Same goes for their government debt which is probably in US$, therefore they pay less in yen to buy the currency with which they repay their debt, so repaying their debt costs less in Yen.



bugrimmar said:
OOH... i get it now!

then.. why doesn't the japanese government just intentionally lower their currency?

 

to save sony ? LOL



so.. soo... what is the ideal currency point?

shit sorry i'm a complete nutter at this numbers stuff.



bugrimmar said:
so.. soo... what is the ideal currency point?

shit sorry i'm a complete nutter at this numbers stuff.

 

I don't know too :P

ur thread makes me sad

 

go sony go , u can get through this mess



There is no ideal currency point since we took the dollar off of gold it has floated its value, it just means to Sony the more N/A sales the profit wont be as high.



PS3, WII and 360 all great systems depends on what type of console player you are.

Currently playing Call of Duty Modern Warfare 2, Fallout 3, Halo ODST and Dragon Age Origins is next game

Xbox live:mywiferocks