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Nintendo Lowers Expectations

by Steven Rodriguez - January 29, 2004, 9:29 am EST
Discuss in talkback! Source: Reuters

Even after words of encouragement, Nintendo will likely fall short of their sales goals.

Nintendo has announced today that it will cut its year-end profit estimate by 10%, will fall about one million units short of its six million yearly GameCube sales goal, and will be two million shy of its twenty million Game Boy Advance sales target.

Because of the stronger Yen in the exchange rate market, all of the US Dollars Nintendo makes doesn't turn into as much Yen as it would had the Japanese currency been weaker. As a result, Nintendo's U.S. Dollar assets have dropped by $540 million to around $5 billion over the last nine months, simply because of the currency exchange rates.

GameCube sales have skyrocketed since the price drops for the system across the globe, but they haven't done so enough to catch up to the PlayStation 2, which Sony says has met its sales goals. The explanation Nintendo gave is that the sales weren't as good as they should have been in the domestic (Japanese) market, even though the system is doing well here and in Europe. Despite this, Nintendo will not re-adjust the target numbers.

Even though the Game Boy Advance will also likely not meet its hardware sales target, the software side of things is looking great. Nintendo has already met its GBA game sales target of 60 million, and still has a few months left yet to surpass it before their fiscal year finishes up at the end of March.

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