Nintendo "Baffles" Market, Cuts Profit Forecast by 33%

From PC World: Even Nintendo gets the blues, judging from the Wii-maker's latest counterintuitive financial announcement. In a shock reversal, the company has inexplicably slashed its full-year profit forecasts by 33 percent.

That certainly doesn't appear to jibe with sales figures, which peg Nintendo's hardware and software sales at second-to-none levels during most of 2008. Nintendo's third-quarter results alone were up 21 percent over the same period in 2007.

According to Times Online, analysts are describing Nintendo's move as a "baffling and potentially very worrying" sign for worldwide Wii sales.

"Today’s revision suggests that the roaring pace of Wii growth that we’ve seen until now may be over," said Hiroshi Kamide, a KBC Financial Products analyst.

Kamide says the reduction may imply that Nintendo knows "something big has gone wrong, and that people are not buying the machines."

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