Is Nintendo Recession Proof?

With an official recession in Japan, a precarious drop in American consumer prices and steep declines in Japanese stock and exports : the answer is, at best, perhaps.

And perhaps the better question: Is any company recession proof?

The official call out of recession with consecutive losses for two quarters in Japanese financial institutions still left some analysts believing Nintendo might weather the storm. The company's stock spiked 3% early on the depression roll out as other exporters floundered.

Nintendo saw a 4% drop on questions of U.S. demand Tuesday. At last close, a whopping 7.9% drop capsized the invincibility theory on a precarious drop in American consumer prices. U.S. consumer prices plunged 1% last month, the most since records began in 1947. Steep declines on both Japanese stock indexes and a decrease in exports of 7.7% took the breath out of most anyone selling goods to America, reports Bloomberg News.

"U.S. consumers have overextended themselves and the consequence of their retrenching is that there won't be any growth for the next five years," said Takashi Kamiya, who helps oversee $16 billion as chief economist at T&D Asset Management Co. in Tokyo.

At odds with these figures is enthusiasm by analysts predicting an upturn in holiday videogame sales, Nintendo's latest earnings report and a seemingly unfettered demand for Nintendo systems.

Holiday sales will better answer the question of Nintendo's place in a native depression. However, it's still a long road back from a 50% drop in company value in less than a year with an ever-fluctuating yen and export pace.

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  So far Nintendo is doing really well. I don't know how it will do this holiday spread when 360 dropped its price.

  LeSomeGuy, 30-11--0001 at 00:00