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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).