6 Reasons Nintendo Shares Bottomed: Sony Corporation (SNE), Microsoft Corporation (MSFT)

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Conclusion

There is no doubt that Nintendo looks as if it could keep dropping. The quarterly results included a forecast that justifies a low share price. Investors thought Nintendo would sell 5.5 million units for the year-ending March 2013, but the company now thinks it will sell 4 million, a 27% drop. In 2012, Nintendo operated at a loss of US $64.4 million, due partly to the strong yen. 2013 is different: the yen depreciated, which will help Nintendo in the short-term. Nintendo will also adjust its operations to improve sales. This means that President Satoru Iwata’s goal of $1.1 billion in profits next fiscal year is achievable.  In the meantime, Nintendo may enjoy the still-strong sales of the original Wii.

The article 6 Reasons Nintendo Shares Bottomed originally appeared on Fool.com and is written by Chris Lau.

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