Nintendo Maintains Confidence in 2009 Growth

2/1/09

With so much success for the Wii and DS thus far, some might think that Nintendo has nowhere to go but down. President and CEO Satoru Iwata has remained optimistic. “It is not impossible for the Wii's total sales to exceed the final installed base of PS2. Wii still has much more room for expansion,” he said at a recent quarterly financial meeting.

Nintendo has confidently predicted that between Japan, Europe, and the U.S., sales of the DS could reach 152.2 million units in the future, according to gamasutra.com. Earlier this month, the Kyoto-based company also hinted at their desire to explore relatively untapped markets, like Russia and India.

Speaking at a quarterly financial meeting with investors, Iwata acknowledged the fears that Nintendo console sales may have reached a peak, citing the typical five-year lifecycle of a modern platform. But with Nintendo’s “gaming population expansion” that targets new casual gamers, Iwata believes there is room for expansion in all European Union countries.

"I don’t think it is appropriate to conclude that DS is reaching its final stages on the market and that the market will be saturated in the next fiscal year,” said Iwata. With Nintendo setting numerous records in 2008, it will be interesting to watch where the company goes in 2009.

2/1/09

2 comments:

Anonymous said...

While it is possible for the DS to reach over 150 million units worldwide, what about the Wii? Will it eventually reach over 100 million, even though at this time it has sold nearly 45 million units?

JJS said...

Wii is selling faster than anything before it, including DS; 100 million is a sure bet. 120, 150, more? There's so little precedent, so much unknown, and it's so far off, it's hard to say.

Things to consider: Will it have a few more ~25 million years? Will a replacement system come out as soon as 2011, or as late as 2013? Will it continue to sell well after the replacement system is out, or will it be a quick transition? Will a competitor's new system suck some of the wind from its sails before then? Etc. etc.

For what it's worth, I think it can make 150 million. I'm not much a betting man when there's actually something to lose, but at thesimexchange.com I currently own Wii stock at a value that currently translates to 144.5 million worldwide, and don't think it's overvalued.

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