Just as I predicted, a blowout!!!

http://www.bloomberg.com/apps/news?pid=20601080&sid=akRk2Ih_aJy4&refer=asia

Nintendo's First-Quarter Profit Rises Fivefold on Wii, DS Sales

By Pavel Alpeyev

July 25 (Bloomberg) -- Nintendo Co., the world's biggest maker of handheld game players, said first-quarter profit rose fivefold as the Wii console widened its sales lead over Sony Corp.'s PlayStation 3.

Net income climbed to 80.3 billion yen ($668 million) in the three months ended June 30, from 15.6 billion yen a year earlier, the Kyoto, Japan-based company said in a release today. Sales, driven by the DS portable and the ``Mario'' games series, more than doubled to 340.4 billion yen from 130.9 billion yen.

Nintendo, whose market value doubled last year, plans to build on the success of the Wii's motion-sensor remote controller with new products including a steering wheel and exercise pad. Sony earlier this month offered a discount on the PlayStation 3 and Microsoft Corp. said it's considering a price cut for the Xbox 360 to catch up with Nintendo.

``Nintendo continues to knock the cover off the ball in the video-game market,'' Daniel Ernst, a New York-based analyst at Soleil Securities Corp. with a ``buy'' rating, said prior to the earnings release. ``Nintendo not only creates great hardware that is low-cost to make and easy to play, but also great software.''

Earnings were also boosted by the weaker yen. The Japanese currency averaged 120.50 to the dollar in the quarter, weakening from 116.11 yen a year earlier, according to Bloomberg data. Against the euro, the yen traded at an average 162.08 yen, compared with 144.56 yen a year earlier.

Six of the top 10 selling games in the U.S. in June were made for Nintendo's game systems, with ``Mario Party 8'' leading the pack, according to NPD Group Inc.

Demand for the Wii will probably continue to exceed supply this Christmas season, Nintendo said earlier this month.

Here is the report and some sales info.

http://www.nintendo.co.jp/ir/pdf/2007/070725e.pdf

Apr-Jun 07

6.98 million DS sold, 47.27 million LTD (June)

3.43 million Wii sold, 9.27 million LTD (June)

3.55 million Pokemon sold 

"Sony earlier this month offered a discount on the PlayStation 3 and Microsoft Corp. said it's considering a price cut for the Xbox 360 to catch up with Nintendo."

 MS clearly doesn't understand that they are not really competing with the Wii they are competing with the PS3.  It's that simple, the Wii is targeting one demographic heavily and the PS3/360 are targeting another.  There is obviously overlap in the appeal of the consoles but by in large that is the case.

Regardless, the 360 could use a price cut soon. 

This would average out to approximately 2.5-3 billion in profits, for the fiscal year, depending on the Christmas sales.

The entirety of Microsoft made approximately 14 billion dollars in profits last year, so about 4-5 times this amount.

The entirety of Sony made 1.5 billion last year, so Sony's profits as a whole would be about half that of Nintendo.

Are any of my numbers and estimations incorrect?  

 Just out of curiosity, what's the specific demographic the Wii is targeting, according to you? 

 Does this mean that VGChartz has undertracked the Wii?

 http://vgchartz.com/weekly.php?date=39264

According to that on July 1st by this site's numbers the Wii only had 8,851,147 WW sales.

the scary thing is, the wii is only getting started.

Here is their new estimate, which is still quite conservative. You have to keep in mine that Q3 can easily be 2-3x what the numbers are for Q1. This amount of profit is over the top. 

The company raised its full-year net income forecast to a record 245 billion yen, 41 percent more than its April projection. Sales will reach 1.4 trillion yen, 45 percent more than the previous estimate.

Looks like "others" may be higher then we thought,  but it's also possible that there may have been 100k sitting on shelves or warehouses.

 I expect 2nd quarter will give another raised estimate.  2 Billion U.S. is way tooo low.  They'll easily pass 2.5 Billion.