Nintendo’s profits down 74.3pc year-on-year

27 Jan 2011

Video-game company Nintendo’s profits have dropped by 74.3pc from last year.

According to Nintendo’s financial results report, during a nine-month period which ended on 31 December 2010, profits reached 49.6bn yen, down from last year’s figure of 192.6bn yen.

Net sales were down 31.7pc from last year, reaching 807.9bn yen.

Nintendo blamed these results on slower sales, the appreciation of the yen and exchange losses caused by the re-evaluation of assets in foreign currencies.

The Nintendo DS sold 15.7m units and the Wii sold 13.72m over the Christmas season globally, down from last year.

Nintendo expects profits to be down by 60.6pc and revenue to be down 23.3pc from last year.

Nintendo’s unit sales forecast for the fiscal year has decreased, with the company expecting to sell 18m units. However, combined with the imminent release of the Nintendo 3DS, this expectation raised the forecast to 22.5m units.

The Wii is expected to sell 16m units.

However, Nintendo has increased its software forecast. For both the Nintendo DS and 3DS, the company expects to reach 135m units. For the Wii, it expects to reach 170m units.