twice connect
careers

Nintendo Report FY Profit Decline

5/06/2010 04:49:43 PM Eastern
Kyoto, Japan - Japanese game-maker Nintendo said Thursday that weaker global sales and a price cut on its popular Wii gaming system contributed to the company's first annual profit decline in six years.

The video game company reported net profit for the fiscal year ended March 31 dropped 18 percent to $2.5 billion (228.6 billion yen).

Nintendo said annual sales dropped 22 percent to $15.4 billion (1.434 trillion yen).

The company forecast sales to fall 2.4 percent to $15 billion (1.4 trillion yen) for the fiscal year through March 2011 and expects earnings to slide 12.5 percent to $2.2 billion (200 billion yen).

Nintendo said sales of its DS portable series game players, including the DSi XL with larger screens, totaled 12.3 million in the Americas.

Worldwide, DS sales reached 27.1 million units during the year. Cumulative sales for the device are now pegged at 128.9 million, surpassing the previous top-selling portable game players -- Nintendo's Game Boy.

As for the Wii home console, Nintendo said sales were difficult over the first part of the fiscal year, due to reduced spending brought on by the weakened economy. However, sales recovered for the holiday shopping period.

Nintendo reduced the price on the Wii to $200 from $250 in the U.S. before the shopping season to boost sales volume.

Wii sales totaled 20.5 million during the fiscal year leading to cumulative sales of 70.9 million, a record for a Nintendo console.

Nintendo said it expects to sell 30 million DS machines and 18 million Wiis in the year ahead.

Top-selling games for the Wii in the period included Wii Sports Resort (16 million worldwide) and Wii Fit Plus (13 million).

 

 

 
Want to read more stories like this?
Get our Free Newsletter Here!

Curated By Logo