Tuesday, September 2, 2008

Reason for the Wii shortage.

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/DN-gamer_0329gl.ART.State.Edition1.464cd43.html

"During the course of the interview, the analyst, Michael Pachter at Wedbush Morgan, said the real culprit for the Wii shortage in the U.S. is the weak dollar.

With a weak dollar, foreign companies that sell their goods in the U.S. for dollars and then convert those dollars to their native currencies get a smaller profit than if they sell their products in countries with strong currencies of their own (such as Europe with the euro). In other words, Nintendo makes a bigger profit on Wiis sold in Europe than on Wiis sold in the U.S."

No comments: