Nintendo profits sink on Wii woes

Oct 29, 2009
Japanese video game giant Nintendo's game character Super Mario is pictured at a showroom in Tokyo. Nintendo Co. has revealed a plunge in profits and slashed its full-year forecasts as sales of its blockbuster Wii video game console take a dive in the absence of hit new games.

Nintendo Co. revealed Thursday a plunge in profits and slashed its full-year forecasts as sales of its blockbuster Wii video game console take a dive in the absence of hit new games.

The company, which was initially relatively resilient to the global economic downturn, said its interim net profit fell more than half to 69.49 billion yen (770 million dollars), from 144.83 billion a year earlier.

slumped 58.6 percent to 104.36 billion yen in the six months through September as revenue slid 34.5 percent to 548.06 billion yen.

Nintendo, which competes with Sony and Microsoft in the multi-billion dollar , sold 5.75 million Wii machines worldwide in the period, down from 10.1 million a year earlier.

"There were fewer software titles that briskly drove hardware sales this six-month period," it said in a statement.

Nintendo recently cut the price of the Wii by a fifth in an effort to reinvigorate sales -- a move that also hit its profits.

It was the first time that Nintendo has reduced the price of the family-friendly console since it was launched in 2006 with a motion-sensing controller that can simulate a gun, sword, golf club or orchestra baton.

The Kyoto-based company lowered its forecast for net profit in the full year to March 2010 to 230 billion yen, from an earlier projection of 300 billion yen. That would mark a year-on-year decrease of 17.6 percent.

It reduced its operating profit target to 370 billion yen from 490 billion, and its revenue goal to 1.5 trillion yen from 1.8 trillion.

Nintendo now expects to sell 20 million Wii consoles this year, down from a previous estimate of 26 million.

It has sold 56.1 million Wiis worldwide since the launch in 2006. The console was the fastest to reach the 50 million milestone, trouncing Sony's more powerful which targeted mainly hardcore gamers.

Nintendo hopes that new games and software such as Sports Resort will energise its sales of the machine during the crucial year-end shopping season.

Demand for its handheld consoles has also cooled recently, with sales of the DS falling to 11.7 million units, from 13.7 million a year earlier.

Nintendo is reportedly set to launch a large-screen version of its DSi hand-held game console in Japan aimed at the elderly in a bid to lift sales.

(c) 2009 AFP

Explore further: Judge approves $450 mn deal in Apple ebook suit

add to favorites email to friend print save as pdf

Related Stories

Nintendo's annual profit rises 8.5 percent

May 07, 2009

(AP) -- Nintendo Co. reported an 8.5 percent rise in annual profit as the video game maker shrugged off the global slowdown that has battered other Japanese manufacturers.

Sony PS3 tops Nintendo Wii in Japan in March: survey

Apr 07, 2009

Sony has been given a vital boost in the battle for the multibillion-dollar video game industry, with a survey showing its PlayStation 3 outsold Nintendo's Wii in Japan for the first time in 16 months.

Nintendo sells 100 million DS consoles

Mar 12, 2009

Nintendo said sales of its handheld DS have topped 100 million machines less than five years since its launch, reaching the milestone faster than any other game console.

Sony's PS3 outsells Wii fivefold in Japan: survey

Sep 25, 2009

Sony's PlayStation 3 video game console outsold Nintendo's Wii nearly fivefold in Japan in the three weeks to September 20, helped by the launch of a new cheaper, slim version, a survey said Friday.

Global sales of Nintendo's Wii top 50 million

Mar 26, 2009

(AP) -- Japanese game maker Nintendo Co. said Thursday global sales of its popular Wii video game console have topped 50 million since it went on sale worldwide in late 2006.

Recommended for you

Dish restores Turner channels to lineup

Nov 21, 2014

Turner Broadcasting channels such as Cartoon Network and CNN are back on the Dish network after being dropped from the satellite TV provider's lineup during contract talks.

'Call of Duty' blasts past $10 bn in sales

Nov 20, 2014

Blockbuster military shooter video game "Call of Duty" has blasted past $10 billion in lifetime sales, propelled by demand for the latest installment in the 11-year-old franchise.

Square's point-of-sale service goes global

Nov 20, 2014

Financial services startup Square is taking aim at cash registers across the globe, making its point-of-sale software available internationally in English, Spanish, French and Japanese.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.