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Nintendo cuts annual profit forecast, but they still expect to rake it in |
Listed in: Wii, Nintendo DS Tags:
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Sony's not the only one who's suffering
from the failing economy. Nintendo is the latest one to fall prey,
cutting its annual net profit forecast by JPÂ¥ 65.6 billion (US$ 664 million).They're still rich though. They still expect to rake in JPÂ¥ 345 billion (US$ 3.5 billion) for the fiscal year.
It was only last month when Sony announced a 57% decrease on their earnings forecast. Compared to that though, Nintendo has it easy, since they only cut theirs by 16%.
Unlike Sony, whose problem is that consumers are losing interest in general electronic gadgets, Nintendo's problem is the declining dollar. Aside from this though, there's no shortage of demand for their consoles. Don't know if I can say the same for supply though.
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Via Associated Press
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Comments
So...which is it? You can't up production AND take a hit.
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So if demand is just as strong as ever, wouldn't it only be right to ramp up production to make up for predicted losses in revenue?
There's no doubt that they have the cash to ramp up production despite predicted losses anyhow.
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If you predict your dollar taking a dump and you ramp up production then odds are you negated them both.
Unless your "ramp" in production wasn't enough. So let's look at that.
Japan didn't completely crash. They aren't in economic crisis. Do you have any clue as to what 33% of Nintendo's Wii production equates to? Bump up their Wii production 33%, take into account they'll still cut 16%....what the hell did their dollar do? Cut in half? Does America need to send them a care package or something?
On a side note, if this is true, then I find it HILARIOUS. If bumping up your Wii console production by 33% means you'll still take a 16% hit, that either means Japan has taken a total shlt or Wii SOFTWARE sells MORE then the Wii itself. Take your pick or add a third! Well, accessories as well. Either way, Nintendo doesn't sell much else.
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The dollar not being worth ***** helps affect that.
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