Quick Hits: Recession Toys with Nintendo
By
Scott Reeves Jan 30, 2009 2:15 pm
Brief scrutiny of today's headlines.
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No more.
Reality struck, showing that even demand for the top-selling Wii game console isn’t recession-proof.
Nintendo says it expects annual profit to drop for the first time in five years. The company cut its sales forecast for Wii as the worldwide economic slowdown takes a bite out of consumer spending in the US, Europe and Japan.
Last year, Nintendo sold about 10.2 million Wii consoles in the US, easily outpacing the combined 8.2 million games sold by Microsoft’s (MSFT) Xbox 360 and Sony’s (SNE) PlayStation3. The US is the world’s largest market for video games.
Nintendo now expects net income for the year ending March 31 will be $2.6 billion, or about 33% less than the company estimated in October.
Wii’s sales didn’t meet expectations during the 2008 holiday season, one of the weakest in years. But no one is predicting the game has run its course.
Declining sales in the video game sector is almost enough to drive you to drink. If so, chances are you'll reach for a beer. Trade organizations say sales growth in alcoholic beverages has slowed, and more consumers are guzzling cheaper options - like beer.
Well, that figures.
Beer and Parcheesi - what a combination.
No positions in stocks mentioned.
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