Nintendo not “recession-proof”, cuts profit forecast
Posted on January 29th, 2009 by Jo | RSS 2.0 | Trackback
Filed under: Business, General Nintendo
Japanese analyst Hiroshi Kamide speculates that the Wii craze might be coming to an end, as Nintendo today cut its income forecasts by 33 per cent.
Although Nintendo still expects to finish the year in the black, “analysts described Nintendo’s guidance as a ‘baffling and potentially very worrying‘ sign for worldwide sales of the Wii as recession curtails household spending around the world”.
Part of the problem, according to games industry insiders in Japan and the UK, is that the pipeline of “must-have” Nintendo Wii software is less strong now than it was six months ago.
On the most widely read gaming websites, there are few forthcoming Wii titles generating the sort of excitement that preceded the release of Mario Galaxy or Smash Brothers.
One big source of margin destruction has been the soaring yen, which rose 24 per cent against the dollar and 30 per cent against the euro in 2008.
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