Nintendo cuts annual profit forecast, but they still expect to rake it in |
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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 [refresh]
This is crap. Just more conflicting news. QJ already reported that Nintendo is not being affected and is ramping up production 33%.
So...which is it? You can't up production AND take a hit.
I don't see how this is conflicting, ISO. This report says that demand for Nintendo's products haven't declined. They only took a hit because of the weak dollar.
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.
Let's try this again. Forecasting is all about predicting the future. Japans weak dollar didn't become just that yesterday. So I'll treat both news bits as one large piece of news.
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.
It's easy. Supply and demand. If they are still in demand then they must up the production to make more money in the long run.
The dollar not being worth ***** helps affect that.
Woot! rock on Nintendo!