Current Events > Arent Japanese game companies making bank with the low yen to US conversion?

(+) Yeah! (+)

Seems like the dollar is offering a lot of bang for the buck currently in Japan. Given this conversion, doesnt it inflate a lil bit the revenue from the US for Nintendo and other companies? Is that how it works?

https://gamefaqs.gamespot.com/a/forum/7/783d8ea6.png

Bored so let's take a peak at some Nintendo investor reports.

https://www.nintendo.co.jp/ir/pdf/2023/230509_3e.pdf

https://gamefaqs.gamespot.com/a/forum/d/dc14e5b6.jpg
They got a nearly 10% boost to their revenue from FX rates in 2023. Still down year over year, but without that bump, I guess it would have been a double digit decline.

https://www.nintendo.co.jp/ir/pdf/2022/220510e.pdf
https://gamefaqs.gamespot.com/a/forum/7/71ce92e8.png
From their 2022 report, they built their forecast off the assumption that 1 USD = 115 JPY.

https://www.nintendo.co.jp/ir/pdf/2023/230509e.pdf
https://gamefaqs.gamespot.com/a/forum/7/720fa3fc.png
However, 2023 on average was actually 135.

A weak currency is good for exports and bad for imports. If you're an import dependent economy like the US, you want a strong currency. If you're export dependent economy like China, you want a weak currency. Back when Japan was blowing up in the late 80s and early 90s the weak yen was a huge help because they were an export dependent economy. Now though it's complicated. Japan still has a manufacturing base, but it's nothing like it was decades ago. So a weak yen is good for some companies and not for others. Nintendo is primarily based in Japan and most of their sales are overseas, so it's overall good for them.

NightRender posted...

Bored so let's take a peak at some Nintendo investor reports.

https://www.nintendo.co.jp/ir/pdf/2023/230509_3e.pdf

https://gamefaqs.gamespot.com/a/forum/d/dc14e5b6.jpg
They got a nearly 10% boost to their revenue from FX rates in 2023. Still down year over year, but without that bump, I guess it would have been a double digit decline.

https://www.nintendo.co.jp/ir/pdf/2022/220510e.pdf
https://gamefaqs.gamespot.com/a/forum/7/71ce92e8.png
From their 2022 report, they built their forecast off the assumption that 1 USD = 115 JPY.

https://www.nintendo.co.jp/ir/pdf/2023/230509e.pdf
https://gamefaqs.gamespot.com/a/forum/7/720fa3fc.png
However, 2023 on average was actually 135.

Interesting stuff.