Despite Gamestop's recent assurances that the Wii will be hard to find for at least six more months, some think that the system's sales figures are about to peak. Exhibit one: KBC Securities Japan, which recently downgraded Nintendo's stock from a "buy" to a "hold" recommendation because of worries that Wii and DS sales will slow after "explosive growth" in the last year.
The KBC report, which also includes a 30 percent cut in its 12-month price estimate for Nintendo stock, is also based on worries that the Japanese company will see its revenues continue to suffer as a result of the weakening American dollar. KBC's outlook stands in stark contrast to Nintendo's own bullish profit estimates over the last year of surging sales. Since everyone seems to be making predictions, we're going to go out on a limb and say that Nintendo's stock will plummet when contact with an alien race quickly erases all human want and destroys the international economic system as we know it. Hey, it could happen ...
Nintendo stock downgraded on fears of slowing system demand
Kyle Orland|March 20, 2008 8:30 PM