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Nintendo Co. Ltd. Message Board

  • xrunner_77 xrunner_77 Jan 29, 2008 1:56 AM Flag

    It's all about the Yen

    I used to think the biggest problem with Nintendo was their refusal to take any risk and actually produce enough product to meet demand. I now see the Yen is the real killer. In the last 6 months, the Yen has risen about 10-15% against the dollar.

    http://www.yenchart.com/Chart-Dollar-Yen.htm

    The former head of Japanese monetary policy was just on Bloomberg saying that he expects the Yen to go to under 100 Yen/Dollar this year.

    Look at it this way. If your profit margin is 20%, and the currency in your target market weakens 20% vs your own currency, you now have 0% profit. That is what we are facing. $%&@*!!

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    • On the other hand, the cost of producing a Wii or DS is dropping. Nintendo can just not lower prices in the US and preserve their margin. Also the other 2/3 of the world economy isn't sinking against the yen like the USD is. The weakening dollar is hurting Sony a lot more than it is hurting Nintendo, and Softie is seeing record profits.

    • Fortunately the wii and ds are popular in europe, england, and japan. People say it is a Nintendo conspiracy that there are not enough wiis it is because Nintendo sends as many as the market will bear to places that they get a better exchange rate. Notice how Nintendo is in no big hurry to get the Wii fit out in the US. Also Nintendo's margins are still pretty stellar even after conversion. I would also be willing to be that if the dollar stays low for very long Nintendo will look to outsource some manufacturing to the US. This would solve this problem as they would be paying the labor in dollars. Also the company could bring a upgraded Wii to the market and up the sticker price to $299. Also did you notice that Japan, Europe, and US made up 97% of Nintendo's sales. This leaves a lot of the world left for Nintendo to go after, China, Russia, Brazil. I don't know if any of these things will happen but it proves the point that Nintendo has options.

      Tam

    • All of my holding in Yen, 7974 Japan.

      I bought NINTENDO because of:
      1. It's a great company. Only NINTENDO and Apple make
      products my 3 years old daughter can play and have fun.
      2. Yen. Japan in pretty good shape now.

    • 1/4th of my Nintendo stock holdings are in Yen. Thank you!

      • 1 Reply to hemloco
      • "1/4th of my Nintendo stock holdings are in Yen. Thank you! "

        Does it make you feel good to simply lie? How about everyone knowing you are a liar?

        To own the stock in Yen you need to buy in 100 share blocks (quite large) on the Nikkei. . .I'll let you do the math however a 29 year old with a couple hundred thousand in Nintendo is simply a lie.

        "Nintendo maintains its 100 share minimum purchase size on the Tokyo Stock Exchange [TSE] and/or fails to split its stock. On July 6, 2007 Nintendo closed at 48,950 yen on the TSE; therefore, an individual would have to pay 4.9 million yen ( $39,796) to purchase the minimum amount of Nintendo. "

        It's gone up a touch since july of 2007. . .

        Believable only if you didn't try to flaunt your lack of intelligence.

        Glad you're long. . .quit being stupid.

 
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