Monday, April 30th 2007

DS and Wii take Nintendo to record profits

The success of Nintendo’s two newest consoles, the Wii and the Nintendo DS, has led to Nintendo reporting record profits for the year ending 31st March. The Japanese based company managed revenue of 966.6 billion Yen (about $8 billion US) and operating profits of 266 billion Yen (about $1.9 billion). These figures show a 90% rise in revenue and 150% rise in profits compared to the same period a year ago. Nintendo sold 23 million Nintendo DS units with 123 million DS games during the year (that makes 40 million units since they started selling the handheld), whilst the Wii managed to sell 5.84 million consoles and 29 million games in the five months after its launch. Read on for Nintendo's press release.

NINTENDO POSTS RECORD YEAR ON STRONG NINTENDO DS SALES, BREAKTHROUGH RECEPTION FOR WII

April 26, 2007

Nintendo Co., Ltd., today reported final consolidated fiscal year revenues of 966.5 billion yen and operating profits of 226.0 billion yen for the year ending March 31, 2007, an increase of 90 percent and 150 percent, respectively, over the same period one year ago. Both numbers are record highs for the company.

The results are due largely to full-year sales of more than 23 million portable Nintendo DS™ systems globally, along with 123 million Nintendo DS games. Since introduction, the Nintendo DS has now eclipsed lifetime sales of 40 million systems.

In addition, in less than five months since introduction, the company sold 5.84 million of its new Wii™ home video game systems globally, virtually every one snapped up immediately by consumers, along with nearly 29 million Wii games. Wii has taken a step toward becoming a cultural phenomenon, appealing widely to both avid and previously disinterested game-playing audiences.

For the fiscal year beginning April 1, 2007, Nintendo projects sales of 14 million Wii systems and 55 million games worldwide. The company projects sales of 22 million Nintendo DS hardware unit sales and 130 million software units sales. Nintendo forecasts consolidated sales increasing nearly 18 percent to 1.14 trillion yen, and operating profits growing nearly 20 percent to 270 billion yen.

All financial projections are based on an anticipated ratio of 115 yen to the U.S. dollar, and 150 yen to the euro. Using this estimate, recurring and net profits for the year are projected to be flat in anticipation of a foreign currency reevaluation loss.

For more information about Nintendo, please visit Nintendo.com.

Note: Forecasts announced by the company referred to above were prepared based on management's assumptions with information available at this time and therefore involve known and unknown risks and uncertainties. Please note such risks and uncertainties may cause the actual results to be materially different from the forecasts.Source: Nintendo
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5 Comments on DS and Wii take Nintendo to record profits

#1
jocksteeluk
as a Nintendo fan i am very happy but i am just not tempted to buy a Wii
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#2
ChaoticBlankness
They really struggled with the N64 and the GC, so this is very good news for them.
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#3
jydie
The thing I like about Nintendo is that they stick to strickly gaming consoles, and nothing more. Although the Wii is not even close to being as powerful as the Playstation 3 and Xbox 360, it is adequate. Plus, the Wii does not generate near as much heat as the other 2 systems... which is a good thing because most gaming systems are put into stuffy, enclosed conditions that allow the heat to build up and shorten the systems life.

The way I see it, the Wii is a gaming system. The Xbox 360 and Playstation 3 are PC's stuffed into a little box. Nintendo has managed to keep the system price down and the fun level high!! That is what console gaming is all about for me. :)
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#4
BXtreme
ah, this era went really well for the Wii :) After failures and failures it made by making consoles for just kids was slowing them down, but wii is built to give fun to everyone (as I see it).
Never used a DS before (my bad luck I guess), so no idea why it was the highest selling handheld. But maybe Pokemon games, trauma were the main reasons for it, only imo.
Anyways, not bad Nintendo, not bad ;)
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#5
WarEagleAU
Bird of Prey
Having played both the DS and the PSP, I think they are both equally awesome. The DS just has game after game after game going for it, and its fun and unique. The PSP is powerful and awesome and fun, just not that many games (though it is changing) and its interactable with the PS3. Im glad to see Nintendo back on top in sales. It makes gaming first and foremost.
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