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TalkBack / RE:Nintendo Lowers Expectations

« on: January 29, 2004, 12:02:10 PM »

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So basicly they had to lower expectations NOT because of any kind of sales deficiency but only because they are somewhat at the mercy of the USD-Yen exchange rate fluxuations? Thats very strange... so Nintendo's proffits grow when the economy of its homeland plunges?? So Nintendo HOPES for Japan's economy to dive??

Wrong.  A strong economy does not necessarily lead to a strong dollar.  The Yen is stronger than usual because the interest rates in Japan are higher than they used to be.  The interest rates are higher now simply because Japanese bankers want to incite people to save.  The banks will then use this money people have saved to lend loans to businesses and other people which encourages investment in capital (buildings, equipment, etc.).  In other words, they have a bad economy and they're trying to get it started again.

P.S. - This also makes it harder to export products from Japan since their products are now priced relatively higher than they were before the bad economy.