Nintendo's Net Income Down 74%; Wii and DS See Sharp Decline
Just as Sony was revealing the super-powered successor to the PSP--dubbed NGP--and its plan to bring unspecified PlayStation content to the Android marketplace, Nintendo revealed its financial results for the first nine months of its current fiscal year. According to the report, net income dropped to ¥49,557 million ($596.7M) versus last year's ¥192,601 ($2.3 billion).
As today's fiscal report adds the third quarter results to an already declined first half, Nintendo maintains the drop (totaling 74.3 per cent) is still due to exchange losses and the appreciated yen.
Revenues also dropped nearly 32 per cent to ¥807,990 ($9.7B) for the nine month period ending December 21, 2010, versus the same time last year.
Specific to the newly added Q3 results, Nintendo's profits for the quarter (October to December) were down 46 per cent. Nintendo's operating profit for the period was listed as competitive to Sony and Nintendo at ¥104.3B ($1.3B), down from ¥192.3B a year ago.
According to the report, the drop in the company's reported Q3 was thanks to declining sales of Nintendo's (let's face it, they sold a ton already) Wii and DS gaming systems.
In more positive news, Nintendo did not (once again) adjust its operating profit forecast, leaving it securely at ¥210B. The sales forecast had previously been altered when it became clear Nintendo would not bring its new 3DS handheld to market in time for the holiday season.
With a late February release of the system in Japan, Nintendo now has an opportunity to sneak some of its 3DS profits into the end of its reported fiscal year. Nothing offsets losses like a highly-anticipated new gaming platform! That is if the people of Japan buy a lot of 3DS units in one month. (Spoiler Alert: They probably will).
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Saturation has been identified as a key problem, along with reaching out to a casual market who may not be that invested in the gaming part of consoles. Couple that with Kinect and Move moving into that market last November.
Marketplace did an article last December on it, and talked to someone in the casual market: http://marketplace.publicradio.org/display/web/2010/12/23/am-nintendos-wii-is-already-outdated/
"I was hoping to find something that would make exercise seem less like brussels sprouts and more like ice cream." So she bought a Wii and Wii Fit -- it's an exercise game. She and her husband started playing every night for at least an hour. After six months, they got tired of the workouts, so Bewley figured she'd just get a new disc for Christmas. "But we were really disappointed because all the ones I saw are really like video games." -
More like with Kinect and Move released any potential customers(with out a Wii) are not even thinking twice on getting a Wii.
Wii days are over, I always hated the console, well N this is what you get for re using old hardware and being cheap. If N actually thought Wii would last long term like the 360 or PS3 they have to be out of their minds(I think the 360 and PS3 should be refreshed already, not gona say what I feel about the Wii).
Yeah 480p Gamecube with waggle.
Actually come to think of it this is fantastic news N may actually put out a new console, I really wonder what it will be like hardware wise. I hope those numbers will fall even more, and they will.
No one in their right mind would get a Wii now that does not have one over the 360 and PS3.-
http://www.futureshop.ca/en-CA/product/microsoft-xbox-360-4gb-kinect-bundle-s4g-00002/10145669.aspx?path=c0878ba2b9563af0d2cf6be305456544en02 $299
http://www.futureshop.ca/en-CA/product/nintendo-nintendo-wii-remote-plus-console-bundle-white-rclswaaa/10157041.aspx?path=682b185da3784bce5a2ac1ed092eb5bben02 $209
I mean come on a $90 diff form a 360 with Kinect, the Wii should sell for $59 not $209 its totally criminal.
If I compare that 360 Kinect pack to the Wii pack its a joke.
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It's definitely time for them to drop the prices some more (at least $50). I'm hoping they announce something at E3 this year.
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Yeah they better, I desperately want a new N console, I want a new "SNES of 2011 or 2012".
Right now I only support the good games that come out and play them on my Comp with a emulator. The emulator really shows you what a little extra care could of done for the Wii hardware. So little could of gone a long long way.
It makes me so sad the whole Wii ordeal :'(
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Yeah, I made a note of that in the post: "thanks to declining sales of Nintendo's (let's face it, they sold a ton already) Wii and DS gaming systems."
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