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Weak dollar to blame for poor Wii availability in US?

Posted on Saturday, April 05 2008 @ 02:45:10 CEST by


According to Michael Pachter, an analyst for Wedbush Morgan, the weak U.S. dollar is to blame for the bad availability of Wii consoles in the U.S.:
The weak dollar is affecting trade with many countries around the world and Japan-based Nintendo stands to gain a lot more by selling its Wii consoles to its customers in Europe rather than those in the U.S. according to Pachter.

Pachter goes on to note that supply levels in Europe are starting to normalize after Nintendo initially sent its excess production there. It is expected that Nintendo will begin funneling more of its Wii allotments to the U.S. later this year which Nintendo hopes will coincide with a stronger U.S. dollar.

"Of course, all things being equal, Nintendo would probably have preferred to be able to supply both Europe and the U.S. simultaneously," said The Dallas News' Victor Godinez. "But the company might be betting that the dollar will be stronger by the time European demand for the Wii subsides, and that may well happen."



 



 

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