Nintendo Thrashed by Continued Yen Flux

The economics of Nintendo depend on which side of the Pacific you're on.

Both market indexes in Japan are at lows not seen since the early 1980's, reports Bloomberg News. Nintendo depends on exports for more than two-thirds of its profit, so the extreme instability of the yen against other world currencies is of growing concern. Nintendo was thrashed on the back of a strong yen, losing 11% of its market share.

The instability of the yen prompted the G-7, the annual meeting of the largest industrialized countries, to make an unscheduled statement. They expressed concern over the yen's "excessive volatility," but fell short of any concerted effort at its stabilization.

But while global financial stress is driving down Nintendo stock, American sales remain resilient. The industry typically generates 40% of its annual revenue during the holidays. Analysts hold that video games fare well during economic downturns, and expect this quarter's sales to reach record highs.

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