- Nintendo reported an 8.5% rise in profit as demand for the console is strong globally
- Profits grew by 8.45% compared to a year ago from 257.34 billion Yen to 279.09 billion Yen.
- Revenue grew by 9.9% to 1,839 trillion yen from 1,672 trillion yen.
- Overseas sales accounted for 87.5% of total revenue.
- “A wider variety of games from Nintendo and third-party publishers have helped sales of the Nintendo DS and Wii platforms to continue to grow, resulting in record net sales and profit.” – Company spokesperson.
Future guidance
- Expects net income to increase by 7.4% in Q1 2010.
- Revenues are forecasted to be relatively flat at 1.8 trillion.
The Wii console truly is a remarkable winner, with sales surpassing both Sony Playstation 3 and Microsoft Xbox 360 this year. The DS on the other hand is the best selling hand-held game device with over 100 million sold (Twice as much as PSP).
Though Nintendo sales continue to grow globally. It is starting to drop locally with the Sony PS3 surpassing Wii sales in March 2009. Since last year, wii sales have been in a down trend in Japan.
Looking forward, the company plans to broaden its wii capabilities by launching its own video-on-demand service and the new DSi incorporates two cameras and the ability to listen as to music as well as browse the internet.
Nintendo is facing heavy competition beyond their 2 competitors. The “Smart phone” is slowly multiplying beyond typical phone capabilities especially with the success of the iPhone and the iPod Touch.
Source: MarketWatch
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