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If you enjoy reading this site, you might also want to check out these Think Services sites:
 Game Career Guide (for student game developers.)
 Indie Games (for independent game players/developers.)
 Finger Gaming (news, reviews, and analysis on iPhone and iPod Touch games.)
 GamerBytes (for the latest console digital download news.)
 Worlds In Motion (discussing the business of online worlds.)
 Game Set Watch (the Group's alt.game weblog.) |
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Investment Firm Downgrades Nintendo, Claims Wii/ DS Demand Peaking
by Mathew Kumar
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March 21, 2008
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Bloomberg has reported that Nintendo has had its stock investment rating downgraded to “hold” from “buy” and its 12-month price estimate decreased by 30 percent to 57,500 yen ($580 US) by KBC Securities Japan, because of concerns that "demand for the DS and Wii will slow."
KBC also reduced profit estimates for Nintendo's next fiscal year by 8 percent to 391.6 billion yen ($3.94 billion), reduced estimated total DS console shipments by 6 percent and reduced estimated Wii software sales by 5 percent.
The new estimates are based on an exchange rate of 100 yen to the dollar, rather than the previous exchange rate of 105 yen to one dollar. “A stronger yen reduces the value of overseas earnings when repatriated by Nintendo, which gets most of its sales from overseas,” said Bloomberg.
KBC analyst Hiroshi Kamide wrote in the report that despite record sales in the U.S. and Europe, demand for the hardware may be peaking, and "it is reasonable to expect a tougher trading environment."
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