Has Demand for Wii and DS peaked?

Mar. 22 11:37 AM by Lynxara

Almost every report about Nintendo's stock has been so uniformly rosy for the past month that covering it seemed pointless. KBC Securities Japan says that is about to change.

As reported by Bloomberg, KBC has cut its estimate for Nintendo stock prices by 30% and downgraded it from a "buy" to a "hold" stock. Additionally, KBC calls for an 8% drop in income at the end of this fiscal year, a 6% drop in DS shipments, and a 5% drop in Wii shipments.

This doesn't seem to make sense given GameStop's declaration that the Wii shortage stands little chance of ending before September of this year, but KBC cites a stronger yen as part of the reason for Nintendo's downgrade.

Profits from overseas sales of Wiis and DS are going to be worth less overall when they go home to Tokyo due to the exchange rate. Still, for Wii and DS shipments to slow, then the supply shortages would have to end sometime in 2008. Are we going to see it, or is this just another analyst prediction that isn't going to hold water?

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