| Today Nintendo Co., Ltd. reported first half fiscal year sales and earnings for the period ending September 30, 2009. While the company reported the third highest mid-term net sales and profits in its history, sales and profits were down compared to the corresponding six month period in 2008. The declines were the results of the limited number of hit software releases in the period to drive hardware sales (compared to
Wii Fit, Super Smash Bros. Brawl and Mario Kart Wii in the corresponding six month period a year ago), the appreciation of the Japanese yen, particularly against the U.S. dollar, and the price reduction on Wii hardware.
Consolidated financial results for April-September 2009 in millions of yen
|
Apr-Sep 09 |
Apr-Sep08 |
% Change |
| Net Sales |
548,058 |
836,879 |
-34.5 |
| Operating Income |
104,360 |
252,183 |
-58.6 |
| Ordinary Income |
110,613 |
237,306 |
-53.4 |
| Net Income |
69,492 |
144,828 |
-52.0 |
While the combination of price reduction for Wii hardware and the introduction of key software in the second half are anticipated to improve sales performance, full year estimates have also been reduced due to the mid-term results.
The full year global forecast for unit sales of Nintendo DS remained unchanged, but the company lowered estimated full year global unit sales for Nintendo DS software, and both hardware and software for Wii.
The revised unit sales forecast for April 2009-March 2010 are as follows:
|
Revised Unit Forecast |
Original Unit Forecast |
| Nintendo DS hardware |
30 million |
30million |
| Nintendo DS software |
150 million |
180 million |
| Wii hardware |
20 million |
26 million |
| Wii software |
180 million |
220 million |
Also altered was the anticipated exchange rate between the yen and the U.S. dollar. Originally set for the full year at 100 yen/dollar, the rate for the second half of the fiscal year is revised to 90 yen/dollar. This will contribute to negative financial estimates compared to original forecasts.
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