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Forums - Nintendo - Nintendo's first-half profit falls 59 percent, cuts forecast

LTD sales figures as of the end of September:

Nintendo Wii
--Hardware
--Worldwide Total: 56.14m 
--Japan: 8.68m
--Americas: 25.99m
--Other: 21.48m

Software
--Worldwide Total: 429.23m
--Japan: 39.32m
--Americas: 234.41m
--Other: 155.50m

Nintendo DS
--Hardware
--Worldwide Total: 113.48m (10.17m of which are from Nintendo DSi)
--Japan: 28.12m (3.73m of which are from Nintendo DSi)
--Americas: 39.35m (3.27m of which are from Nintendo DSi)
--Other: 46.01m (3.17m of which are from Nintendo DSi)

Software
--Worldwide Total: 638.07m
--Japan: 162.69m
--Americas: 237.06m
--Other: 238.32m

New forecast for the fiscal year (units):

Nintendo DS
--Software: 150m (revised down from 180m).
--Hardware: 30m (unchanged).

Nintendo Wii
--Software: 180m (revised down from 220m).
--Hardware: 20m (revised down from 26m).


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TOKYO, Oct 29 (Reuters) - Nintendo Co Ltd reported a 59 percent decline in first-half profit on Thursday, hurt by sluggish demand for its flagship Wii videogame console and the strong yen, and it slashed its full-year forecast.

Nintendo, which faces stiff competition in the videogame market from Sony Corp and Microsoft Corp, said operating profit was 104.4 billion yen ($1.2 billion) in the April-September half, compared with 252.2 billion yen a year earlier.

Nintendo cut its operating profit forecast for the year to March 2010 by nearly a quarter to 370 billion yen, ending a three-year run during which it booked a record profit on booming demand for its Wii console and DS portable device.

That compares with an average estimate of 442.8 billion yen in a poll of 25 analysts by Thomson Reuters I/B/E/S.

Demand for Nintendo products like the Wii has cooled as rival Sony has bolstered its line-up of console games, and as Apple Inc's iPhone has become a popular platform for handheld games.

Nintendo's earnings, like those of other Japanese exporters, have also been blunted by the stronger yen JPY=, which eats into overseas profits. Shares of Nintendo have declined about 28 percent so far this year, compared with a 14 percent rise in the Nikkei 225 .N225 share average.

http://uk.reuters.com/article/idUKT30590220091029

http://www.nintendo.co.jp/ir/pdf/2009/091029e.pdf



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So it's still making multiple billions in profit. Those outdated specs sure cost them, didn't they?



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

How many Wiis are they forcasting to ship now ??

Because 26 mil is not happening.



TheThunder said:
How many Wiis are they forcasting to ship now ??

Because 26 mil is not happening.

Where does it say that?



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

TheThunder said:
How many Wiis are they forcasting to ship now ??

Because 26 mil is not happening.

20 million.



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I guess this was expected, the rediculous strength that the yen had during the worst of the downturn reall would have killed alot of their profitability from the more lucrative markets in europe (where they make a higher margin). Let alone that 1 AUD went from buying 104yen to just over 60 in less than 6 months!




The second half of their fiscal year will be better, but this was expected...

When you learn that 500.000 US citizens do loose their jobs in one single week, you don't expect them to go to the next Wal-Mart to buy a Wii and 10 games... most companies in this world are affected by the crisis, and 2009 won't be the greatest year ever for anyone...

Now, if you see this in a postive way, they're still doing more profits than the usual business they had between the early 80's and 2006, so it's not that bad... and PS360 will be affected the same way, even if the pricecuts and the introduction of a new model for PS3 will have a positive effect... just to stay at the same kind of sales volume...

 

Edit:

An interesting thing to notice when you look at details: the software sales on both DS and Wii are globally the same from one year to another...

DS hardware sales decrease a little bit, but are still OK, and the Wii hardware sales are really the ones declining... maybe because the demand has finally slowed down, and because the line-up this year (and since june 2008, in fact) hasn't been huge enough to attract new customers... especially the hardcore crowd, more busy than ever on their HD consoles...

Oh, and btw, another important thing to notice: software sales on DS (638 millions) and Wii (429 millions) are now over ONE BILLION!

If that isn't huge, what is?



 

"A beautiful drawing in 480i will stay beautiful forever...

and an ugly drawing in 1080p will stay ugly forever..."

They're still doing quite well, just not as well as last year. Much better than alot of other companies anyway.



 

 

Its sort of funny that Nintendo planned on beating Sony's lifetime sales of PS3 in a single fiscal year! 20-million is more then enough hardware sales and I'm betting software sales will continue to be through the roof. I myself just bought my mom a Wii and WiiFitPlus for Christmas and I'm sure as we get closer to Christmas sales of Wii's will boost tenfold. Will the Wii ship its 26-million origionally predicted , No but they will likely meet the revised 20-million unit target. Lets hope Nintendo can recapture first place in the monthly charts from Sony.



-JC7

"In God We Trust - In Games We Play " - Joel Reimer

 

So for Q2 of the fiscal year they shipped:

Wii

Hardware total: 3,52m
Japan 510k
The Americas 1,57m
Others 1,45m

DS

Hardware total: 5,73m
Japan 1,12m
The Americas 2,38m
Others 2,23m