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Apr-24-2008Nintendo Profit Forecast Misses Estimates on Yen (Update1)(topic overview)
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The company also sold 30.31 million units of the DS worldwide. Nintendo expects to continue its growth this fiscal year through March 2009, though at a more modest pace. It projects a 26.3 percent rise in net profit to 325.0 billion yen ($3.15 billion), a 7.6 increase in net sales to 1.800 trillion yen, and an 8.8 percent climb in operating profit to 530.0 billion yen ($5.14 billion). "Nintendo's strategy is to accelerate the current sales momentum from 'must-have for every family' to 'must-have for everyone' by continuously introducing new and unique software and introducing new services which take advantage of its expanded installed base," the company said in its report. [1] New financial documents released by Nintendo have revealed that the company's Wii console has sold 24.45 million units worldwide since its 2006 release, with the handheld Nintendo DS selling 70.6 million units worldwide since its debut in 2004. Of those figures, 18.61 million Wii and 30.31 million DS systems were sold in the company's 2008 fiscal year, which ran from April 1, 2007 to March 31, 2008. Due to strong hardware and software sales in the 2008 fiscal year, including Super Mario Galaxy (Wii) and Pokemon Diamond and Pearl (NDS), Nintendo saw its net income jump to 1.67 trillion yen ($16.01 billion), a 73% increase over the past fiscal year.[2]
The positive earnings results were attributed to strong demands of popular Wii console and handheld DS consoles, the company said. Nintendo expected its net profit to soar 26 per cent to 325 billion yen for the current fiscal year through March 2009, while its operating profit was projected to rise 8.8 per cent to 530 billion dollars with sales of 1.8 trillion yen, up 7.6 per cent from a year before.[3] For the current fiscal year to next March, Nintendo expects a 26.3 percent increase in net profits to 325 billion yen, with a stronger yen set to reduce earnings by 12 billion yen. Nintendo aims to sell 28 million DS consoles and 25 million Wiis this fiscal year. "It is not realistic to see any further growth in Japan" because of the strong sales already achieved, said company spokesman Yasuhiro Minagawa. "But given the fact that DS is seeing a supply shortage outside Japan, we can expect sales growth in overseas markets," he said.[4] TOKYO - Nintendo Co. reported a 48% increase in its annual net profit as its Wii videogame console and DS portable game device continued to sell strongly, but it set a conservative forecast for the current fiscal year ending March 2009 as a stronger Japanese yen reduces the value of overseas sales. The Japanese videogame maker said its net income for the year, ended March 31, rose to ¥257.3 billion ($2.49 billion), compared with ¥174.3 billion a year earlier.[5] Osaka, Apr 24, 2008 (Jiji Press) - Nintendo Co. said Thursday it expects to post record earnings in the current fiscal year ending next March thanks to brisk sales of its Wii video game console and game software. The leading Japanese game machine maker expects its group net profit to surge 26.3 pct from the previous year to 325 billion yen.[6]
Nintendo said operating profit for the quarter through March rose to 93.2 billion, handily beating estimates. "Nintendos strategy is to accelerate the current sales momentum from must-have for every family to must-have for everyone by continuously introducing new and unique software and introducing new services which take advantage of its expanded installed base," the company said in its report. The Wiis motion-sensitive controller and a lower price than the PlayStation 3 or the Xbox 360 may help Nintendo overtake Sony in worldwide sales of home game consoles this fiscal year, according to the Daiwa Institute of Research.[7] The median estimate in a Bloomberg survey of six analysts was for profit of 337.1 billion yen. The Wii's motion-sensitive controller and a cheaper price than the PlayStation 3 or the Xbox 360 may help Kyoto-based Nintendo overtake Sony Corp. in worldwide sales of home game consoles this fiscal year, according to Daiwa Institute of Research Ltd. The Wii has outsold Sony's PlayStation 3 since its introduction in November 2006.[8]
Japan's Nintendo Co Ltd, maker of the hit Wii game console, said on Thursday fourth-quarter profit jumped 60 percent, but it forecast modest annual growth of 9 percent as it expects sales of its DS handheld machine to slow. The conservative projection comes despite seemingly insatiable demand for the Wii, which has so far outsold Sony's PlayStation 3 and Microsoft Corp's Xbox 360 since its launch in late 2006. Starting with the DS, and then the Wii, which has attracted new casual gamers with quirky but easy-to-learn games and its motion-sensing controllers, Kyoto-based Nintendo has more than doubled its operating profit for two years running.[9] Brawl fighting game and the imminent launch outside Japan of the Wii Fit home fitness programme are expected to drive sales and help Nintendo contend with unfavourable currency rates. PlayStation 3 will also be helped by its Blu-Ray capability for next generation high definition movie discs although analysts differ on how far better sales of rival machines would seriously hurt the Wii, which targets a different market. Nintendo said revenue should increase 8 percent to 1.8 trillion yen and forecast global Wii sales would increase 34 percent to 25 million units this business year, while targeting a 48 percent jump in software sales to 177 million units. It also said it may ramp up Wii monthly production capacity by a third to 2.4 million units. It said annual sales of its DS handheld player would likely fall to around 28 million units from 30.3 million.[9] While Sony's PS3 may gain momentum on the back of new software titles and its Blu-Ray capability for next generation high definition movie discs, that is seen having little impact on sales of the Wii, which is targeted at a different market. Nintendo said revenue should increase 8 percent to 1.8 trillion yen and forecast global Wii sales would increase 34 per cent to 25 million units this business year, while targeting a 48 per cent jump in software sales to 177 million units. It also said it may ramp up Wii monthly production capacity to 2.4 million units by summer from 1.8 million units currently. It said annual sales of its DS handheld player would likely fall to around 28 million units from 30.3 million. Microsoft reports its third-quarter earnings later on Thursday, while Sony's annual results are due on May 14. Nintendo shares have fallen 12 percent so far this year in line with a drop in the Nikkei average, but have gained more than 60 per cent in the past 12 months.[10]
The yen has strengthened 7.8 percent against the dollar in 2008, adding to a 6.1 percent increase last year. Nintendo said it assumed a rate of 100 yen against the dollar and 155 to the euro for its forecasts. Nintendo projects it will sell 28 million DS players this fiscal year, a 7.6 percent drop from the most recent 12-month period. DS sales rose 29 percent to 30.31 million units last fiscal year, surpassing its January projection of 29.5 million.[11]
Looks like Ashcraft's information was right on the money! Along with the news that profits and sales skyrocketed during fiscal year 2008, Nintendo forecasts that shipments of the Nintendo Wii will increase to 25 million over the course of the next year, more or less in line with the 2.4 million a month estimate. The Wii enjoyed massive sales this year, with Nintendo shipping 18.6 million units for the 12 month period ending March 31st, bringing the worldwide total to 24.45 million units.[12] Group net profit rose 47 percent to 257.34 billion yen ($2.5 billion). For this past fiscal year Nintendo shipped 18.61 million Wii console to its distributors and retail customers across the globe; since the launch of the console in November 2006, Nintendo has shipped 24.45 million worldwide. For the fiscal year that just began on April 1, Nintendo now forecasts global Wii console shipments to reach 25 million, which would bring the total to nearly 50 million at this time next year.[13] For the fiscal year ending next March, the company is forecasting a 26.3 percent increase in net profit to 325 billion yen ($3.15 billion), a 7.6 increase in net sales to 1.8 trillion yen, and an 8.8 percent rise in operating profit to 530 billion yen ($5.14 billion). In addition to its fiscal results, Nintendo today also announced a full-year dividend for its shareholders of 1,260 yen per share (including the interim dividend of 140 yen already paid). This represents an increase of 570 yen over the annual dividend of 690 yen paid one year ago.[13] Nintendo has forecast that its profit will rise by another 26 per cent in its fiscal year 2008-2009, according to Bloomberg. Having announced a doubling in operating profit in its current FY results this morning, the firm has predicted that net profit will reach 325 billion yen ($3.13 billion) in the 12 months to March 31st - up from the 257.3 billion yen reported for this year.[14]
Kyoto-based Nintendo said operating profit for the January-March quarter surged to 93.2 billion yen ($900 million), handily beating a Reuters Estimates consensus of 82 billion yen from 19 analysts. The company, valued at around $81 billion, expects profit to climb to 530 billion yen this business year, six per cent below the average analyst estimate of 566.5 billion yen.[10]
Operating profit surged to 487.22 billion yen from 226.02 billion the previous year as revenue leapt 73.0 percent to 1.67 trillion yen. Nintendo can barely keep up with demand for the Wii, which is known for its innovative motion-sensitive controller and -- unlike rival Sony Corp.' s PlayStation 3 -- is aimed at customers who normally would not play video games.[4] Video games giant Nintendo has reported record profits and sales for the year to March 2008, lifted by surging demand for its Wii and DS consoles. It sold 18.6 million Wii machines over the year, lifting net income to 257.3bn yen ($2.48bn; '1.25bn), up 47.7%. Nintendo has struggled to keep up with demand for the Wii, popular with all ages unlike its rivals.[15] Ubisoft: Wii To Rule Them All, Microsoft/Sony Battle Split In U.S/Europe In an investor call following Ubisoft's strong full year results, execs predicted that - while the Wii will be the console leader in 2008, the PS3 will trump the Xbox 360 in Europe, while Microsoft will lay claim over the U.S. -- also within, Ubisoft on acquisitions, average game dev costs, in-game ads. Nintendo Profits Up 48% To $2.5 Billion In Full Year Results Nintendo has released its full year financial results, with revenues increasing by 73 percent and profits up by 48 percent, but despite the company's 'robust' sales of the Nintendo DS and Wii, only a small increase is predicted for 2009 due to concerns over the weakening dollar.[16] The Kyoto-based company said net profit rose 47.7 percent to 257.34 billion yen ($2.48 billion; €1.57 billion). Very strong sales of hardware such as Wii and DS saw revenue increased 73 percent year-on year to 1.67 trillion yen ($16.1 billion).[17] Sales of the Nintendo Wii and DS are driving profits at Nintendo, which are posted record annual results today. The company is reporting that its net profits are up 77.2% as compared to last financial year at Yen 174.3 billion, which equates to 1.1 billion euros or £731 million.[18]
Operating profit jumped 2.1-fold to an all-time high of 487,220 million yen, on record sales of 1,672,423 million yen, up 73.0 pct. Sales of Wii surged 3.1-told to 18.61 million units and those of Nintendo DS were up 28.6 pct at 30.31 million units. Cumulative sales of Wii came to 24.45 million units at the end of March, and those of Nintendo DS stood at 70.60 million units.[6] Nintendo said it had sold 18.61 million Wii consoles in the fiscal year, lifting total sales since the launch in December 2006 to 24.45 million units. It sold 1.85 million "Wii Fit" boards, which can be used for sports and games including yoga, virtual snowboarding, ski-jumping and aerobics. Launched here in December, they will go on sale in North America next month. Nintendo has long dominated the market for handheld machines and continues to enjoy strong demand for its double-screen Nintendo DS, selling 30.31 million units over the fiscal year.[4] Nintendo predicted earnings will rise again next year to 325bn yen, slightly below analysts' forecasts. Nintendo said it has sold a total of 24.45 million Wii machines since its debut in November 2006. It predicts this figure will rise by 25 million by the end of March 2009. Demand for the firm's hand-held Nintendo DS remained strong, with customers snapping up 30.31 million units over its last fiscal year.[15]
OSAKA, April 24 (Reuters) - Japan's Nintendo Co Ltd (7974.OS: Quote, Profile, Research ) said on Thursday it aims to sell 25 million Wii game consoles in the current business year, up from 18.6 million sold in 2007/08. It also set a sales goal of 28 million units for the DS handheld game player, down from 30.3 million units in the year ended March 31. It hopes to sell 177 million units of software for the Wii, up from 119.6 million.[19] Brawl" and the imminent introduction outside Japan of the "Wii Fit" home fitness program are expected to drive sales and help Nintendo shrug off unfavorable currency rates. While the PlayStation 3 may gain momentum with new software titles and its Blu-Ray capability for next-generation high-definition movie discs, such efforts by Sony are expected to have little effect on sales of the Wii, which is marketed toward a different market. Nintendo said it could increase the Wii monthly production capacity to 2.4 million units by this summer from the current 1.8 million. It said annual sales of the DS would likely fall to around 28 million units.[7] Wii sales tripled to 18.61 million last year, compared with an earlier expected 18.5 million, Nintendo said. Nintendo will raise monthly output of the Wii to 2.4 million units this "summer,'' from 1.8 million at present, company President Satoru Iwata told reporters in Osaka today. The company will probably overtake Sony in worldwide sales of home video-game consoles this fiscal year as the Wii extends its lead over the PlayStation 3, according to Daiwa Institute of Research Ltd.[11]
The video game industry performed well despite a slowing global economy. Nintendo said it would continue expanding the gaming audience to both novices and experienced users — a strategy that has paid off against rivals Sony Corp. and Microsoft Corp. Nintendo said it sold 18.61 million units of its Wii console globally last year, for a total of 24.45 million units moved since it was launched in November 2006.[1] The company also increased projected shipments of the popular Wii''' home video game console for the current fiscal year. During the 12 months ending March 31, 2008, Nintendo shipped 18.61 million Wii console to its distributors and retail customers globally, bringing the worldwide total to 24.45 million since its debut in November 2006.[12] Nintendo Forecasts Record Earnings in FY 2008 said Thursday it expects to post record earnings in the current fiscal year ending next March thanks to brisk sales of its Wii video game console and game software[6] TOKYO (Thomson Financial) - Japanese video game maker Nintendo Co. on Thursday racked up a record operating and net profit in the fiscal year ended March on strong demand for its portable and home-use video game consoles and game software.[20] TOKYO (AP) — Nintendo Co.' s net profit surged 47.7 percent to a record high, powered by strong sales of software and accessories for its popular Wii video game console and brisk sales of its DS handheld devices.[1] TOKYO (AFP) — Japanese video game giant Nintendo Co. said Thursday that its annual operating profit had more than doubled as sales hit a record high on surging demand for its Wii and DS consoles.[4]
Revenue increased 73 percent to a record 1.67 trillion yen. Nintendo said global sales of its Nintendo DS dual-screen portable game consoles rose to 30.31 million units from 23.56 million.[20] Nintendo forecasts huge sales for both Wii and Nintendo DS in coming year. Nintendo has made a massive statement of intent, forecasting massive sales of both its Nintendo DS and Wii console for the coming financial year, which if correct will see the Wii only a breath away from 50 million unit sales and the DS a whisker away from 100 million unit sales.[21] In the 12 months ending March 31, 2008 the Wii sold 18.61 million units and the DS 30.31 million units. It's the massive upturn in forecast Wii sales which will strike fear into the competition though. 12-month sales of 25 million would see the console open up a seemingly unbeatable lead in this console generation and leave the PS3 and Xbox 360 to battle it out for second place.[21]
The gaming giant is also confident that the boom will continue, predicting global DS sales of 22 million units and 130 million games for 2007/8. It says that sales of the Wii will hit 14 million consoles and 55 million software titles this coming financial year.[18] Nintendo said that in the current year, global sales of the Wii would rise by 34 per cent to 25 million units, and that sales of game software would rise by 48 per cent to 177 million units.[22] Annual sales of the handheld DS console were also expected to fall by 8 per cent, from 28 million units from 30.3 million, Nintendo said.[22]
Nintendo, the electronics manufacturer, said that its annual profit rose by 48 per cent on the back of strong sales of its Wii console, but forecast lower than expected annual growth of 9 per cent, adding that sales of its handheld DS device had slowed.[22] Sales may gain 7.6 percent to 1.8 trillion yen, the slowest growth in three years. Nintendo, which gets 80 percent of sales from outside Japan, projected the yen will make further gains against the dollar this year after reaching a 12-month high last month. The Kyoto-based company's forecast backs projections by Nomura Holdings Inc. and Goldman, Sachs & Co., which cut their profit estimates in the past month because of the stronger Japanese currency.[11] The company enjoyed sales of 1.67 trillion yen, a leap of 73 percent over the previous year, with operating profits up 115.6 percent to 487 billion yen.[12] Sales in the year ended March 31 gained 73 percent to 1.67 trillion yen, while operating profit more than doubled to 487.2 billion yen.[11] Nintendo is expecting net profit to rise 26.3 percent to 325 billion yen, operating profit to climb 8.8 percent to 530 billion yen, and sales to be up 7.6 percent to 1.80 trillion yen.[20] Net profit leapt 47.7 percent to 257.34 billion yen, compared to 174.29 billion yen last year, while net sales rose 73 percent to 1.67 trillion yen.[23]
Nintendo's annual sales have increased by 73% to 1.67 trillion yen (''8 billion) in the year to March 31, with profits up by 115.6% to 487 billion yen (''2.3 billion).[24] With the rising price of the yen and falling dollar resulting in expected foreign exchange losses of around '12 billion ($115m), Nintendo has conservatively predicted sales of '1.80 trillion ($17.3bn) and profits of '325 billion ($3.1bn) in the coming fiscal year.[16] After taking operating costs and taxes into account, Nintendo was left with a 257.3 billion yen ($2.4 billion) profit for the 2008 fiscal year, 47.7% more than that of the 2007 fiscal year.[2] For the fiscal year ended March 31st, operating profit jumped to a record 487.22 billion yen ($4.7 billion; €2.9 billion) from 226.02 billion yen ($2.18 billion; €1.39 billion) in 2006-2007.[17] Net profit rose 47.7 percent to an all-time high of 257.34 billion yen (2.48 billion dollars) in the fiscal year to March, a company statement said. It missed its own previous forecast for a 275 billion yen net profit as the effect of the stronger yen started to bite.[4] The forecast assumes that the dollar will stand at 100 yen at the end of March 2009, down from 100.19 yen at the end of March 2007, and the euro will stand at 155 yen, compared to 158.19 yen. Based on those rates, the company expects a forex loss of 12 billion yen. Nintendo aims to sell 28 million Nintendo DSs, and 25 million Wiis this fiscal year.[20] For the last fiscal year, Nintendo's net income rose 48 percent to 257.3 billion yen. That's less than the 279.4 billion yen median of 22 analyst estimates compiled by Bloomberg and the company's forecast for 275 billion yen.[11] Nintendo forecast net profit to grow 26 percent to 325 billion yen on a sharp fall in currency appraisal losses. It also raised its annual dividend outlook to 1,370 yen, up from 1,260 yen, which was in turn a huge jump from 690 yen the previous year. Microsoft reports its third-quarter earnings later on Thursday, while Sony's annual results are due on May 14. Nintendo shares have fallen 12 percent so far this year in line with a drop in the Nikkei average, but have gained more than 60 percent in the past 12 months.[9]
The Kyoto-based maker of the Wii video game machines said net profit rose 47.7 percent to 257.34 billion yen.[20]
"Brain-training" DS games also did well. With a stronger yen cutting into its overseas earnings, the Kyoto-based company sees a more modest 8.8 percent increase in operating profits to 530 billion yen and a 7.6 percent gain in revenue to 1.80 trillion yen.[4] Sales jumped 73 percent to more than 1.67 trillion yen ($16.07 billion) while operating profits soared 115.6 percent to more than 487 billion yen ($4.69 billion).[13] Sales jumped 73 per cent to a record 1.67 trillion yen, and operating profit more than doubled to 487.22 billion yen, also marking a record high.[3] Operating profit - which is sales minus the cost of goods sold and administrative expenses - will probably climb 8.8 per cent to 530 billion yen, Nintendo added.[14] Operating profit, or sales minus the cost of goods sold and administrative expenses, will probably climb 8.8 percent to 530 billion yen, Nintendo said, missing the 557.7 billion yen median estimate in the survey.[11]
There would also be an 8.8 per cent rise in operating profit, to Y530 billion. The company said: "Nintendo's strategy is to accelerate current sales momentum, from 'must-have for every family' to 'must have for everyone' by continuously introducing new software and services which take advantage of its expanded installed base."[22] Life-to-date the tie ratio for the DS has been 5.24 games per system worldwide. "Nintendo's strategy is to accelerate the current sales momentum from 'must-have for every family' to 'must-have for everyone' by continuously introducing new and unique software and introducing new services which take advantage of its expanded installed base," the company stated. Nintendo thoroughly expects to keep its momentum throughout this year and into 2009.[13]
Nintendo has proved itself to be the most profitable of the players in the current console war, being the only maker to actually turn a profit on each unit sold. Its strategy in the past five years, from the DS to the Wii, has paid off handsomely and the company can expect continued profitability for years to come, even if it will suffer a slowdown in growth.[25] The Wii has been the big driver of sales, shifting 18.1 million units last year for a total of 24.5 million units moved since the console was launched in November 2006; and the company expects to sell a further 25 million in 2008 as overseas markets continue to buy up the console faster than Nintendo can produce units.[25] Just 5.84 million units were sold in the company's previous financial year - but the Wii wasn't launched until November, 2006. This year's Wii sales exceeded Nintendo's expectations.[26]
Nintendo's Wii console has sold 24.45 million units worldwide since launch, the company has reported in its full year fiscal statement.[26] Nintendo revealed that it has sold more than 23 million Nintendo DS units during the year, and 123 million DS games. 5.84 million Wii consoles and 29 million games have been sold since this next-gen toy launched in December.[18] Nintendo said it sold 18.61 million units of the Wii globally last year, for a total of 24.45 million units moved since the game console was introduced in November 2006.[7]
In the year, Nintendo plans to sell 25 million units of Wii, up 34.3 pct, and 177 million game software units for the machine, up 48.0 pct.[6]
Nintendo expects sales of Nintendo DS software in the 12 months ending March 2009 to reach 187 million units, with Wii software sales not far behind at 177 million units.[21] Life to date sales of the Wii and Nintendo DS stand at 24.45 million units and 70.6 million respectively.[21]
Sales of Nintendo DS dual-screen portable games climbed to 30.31 million units from 23.56 million the year before.[27] Sales of the Nintendo DS portable game machine, however, are expected to fall 7.6 pct to 28 million units.[6] Accumulated sales of Nintendo DS reached 70.6 million units, making it the world's best-selling portable game machine.[20]
The company described Nintendo DS sales worldwide as 'robust' with a total or 30.31 million units sold for a life-to-date total of 70.6 million.[16] The Nintendo DS is set to suffer a slowdown, with sales shrinking 8-percent in 2008, though overall the DS has been confirmed as the best selling handheld of all time, with 30.31 million units sold worldwide.[25]
Key title Pokemon Diamond / Pearl has sold 9.56 million units worldwide during the year, for a 14.77 million lifetime total. Combined sales of both Brain Training (aka Brain Age ) games sold 11.81 million units for a total of 23.81 million.[16]
Wii had accumulated sales of 24.45 million units, making it the top-selling home-use game console, above Microsoft Corp. (nasdaq: MSFT - news - people )'s Xbox360 and Sony Corp. (nyse: SNE - news - people )'s PlayStation 3. Sony has long dominated the global home-use, standalone game console market with its PSOne and PlayStaion2, but due to the lack of strong game titles and relatively high price, PS3 has so far lagged behind the rival formats in terms of sales.[20] The Nikkei was down 0.3 per cent. The Wii console, which has been credited with introducing new audiences to video games, has consistently outsold its competitors -- Sony's PlayStation 3 and Microsoft's XBox 360 -- since its release in November 2006, even though it is aimed at a different market.[22]
I disagree that the Gamecube was failure per se, granted it wasn't as ubiqitious as the PS2; but it managed more or less parity with the first Xbox in terms of sales. Additionally (and like the Wii) it was sold at a very slight profit, unlike the sony and microsoft machines, combined with most the best selling software being first party nintendoware meant that they made a healthy, if not astronomical profit. Similar circumstances would apply to the N64 too. I think there's a perception that if a console isn't outselling everything else it must be a failure, which is probably born out of Sega's spectacular implosion a few years ago: but Nintendo have always been financially astute and the only one of their consoles that I can think of that was a failure with a capital F is the Virtual Boy. Offensive? Unsuitable? Report this comment.[24] According to Matthew Grose, GM of Core Gaming, the official local distributor of the Nintendo Wii, in the first two months of this year, the gaming device secured 54% of the third-generation console market in SA. 'Compared to Microsoft's Xbox at 23% and Sony's PlayStation 3 (PS3) at 24%, this is significant growth for us,' he says. These figures are up from the last quarter of last year, where the console held 46%, the Xbox 29% and the PS3 took 23% of the market.[28]
Kyoto-based Nintendo has reported that its operating profit more than doubled for the fiscal year ended March on strong demand for its Wii and DS consoles.[23] Nintendo has had a good year with sales up 73-percent, operating income up 115.6-percent, and profit up 47.6-percent on the back of the hugely successful Wii and continued strong sales of the DS handheld.[25] As one would expect, obscene Wii and DS demand spiked sales to 73 percent over the same period last year, resulting in near-double profits of $2.5 billion for the three month period.[29]
In the fiscal year just ended, the company posted sales of more than $16 billion as Wii shipment have approached 25 million worldwide.[13] The company also delivered 18.61 million Wii consoles, up from 5.84 million units in the previous year. Sales of both consoles exceeded the company's targets.[20]
For the fiscal year that began April 1, 2008, Nintendo forecasts global Wii console shipments increasing to 25 million.[24] April 24 (Bloomberg) -- Nintendo Co., the world's biggest maker of handheld game players, forecast profit will rise 26 percent this year as its Wii console outsells rival machines.[8] April 24 (Bloomberg) -- Nintendo Co., the world's biggest maker of handheld game machines, forecast profit will rise less than analysts estimated as a stronger yen erodes the value of its Wii and DS players sold overseas.[11]
Nintendo expects profit to climb to 530 billion yen this business year, 6 percent below the average analyst estimate of 566.5 billion yen.[9] The company said operating profit jumped to a record 487.22 billion yen, up 115 percent from 226.02 billion yen the previous year.[23] Nintendo also reported FY08 operating profits of more than 487 billion yen, a year-over-year increase of 115.6 percent.[12]
Operating profit is estimated to rise 8.8 pct to 530 billion yen, on sales of 1.8 trillion yen, up 7.6 pct.[6]
The Japanese game creator saw its profit surge 47.7 per cent to a record 257.34 billion yen (2.5 billion dollars) in the year through March, compared to a year before.[3] The Kyoto-based company reported a group net profit of 257.34 billion yen ($2.5 billion) for the March-April period compared with 174.29 billion yen a year earlier.[1] The growth in net profit was much slower than operating income because the company incurred foreign exchange losses of 92.3 billion yen due to the rapid appreciation of the yen.[20] The company predicted another year of record net profits but said the pace of growth would slow as a stronger yen curbs overseas revenues.[4]
In the year that ended in March, Nintendo's net profit grew 47.7 pct from the previous year to 257,342 million yen.[6] TOKYO -- Nintendo recorded a 48% jump in net profit for the fiscal year ending in March 2008, despite big exchange rates losses, the company announced Thursday.[27] Nintendo today announced its earnings for the fiscal year ended March 31, 2008, revealing the company's continued success with record revenues and profits.[13] Nintendo Co., Ltd., has announced record revenues and profits for the fiscal year ending March 31, 2008.[12]
During the current fiscal year, Nintendo forecasts shipments of an additional 28 million Nintendo DS units. [13] As for Nintendo's handheld business, the ubiquitous DS shipped an incredible 30.31 million units worldwide in the last fiscal year, bringing the total worldwide shipment to 70.6 million.[13]
Nintendo also said that it shipped 119.6 million software units for the Wii in the last fiscal year.[13] For fiscal year 2009 the company expects to ship 177 million Wii software units.[13]
Nintendo said it shipped 185.62 million DS software units in fiscal 2008 and the company is anticipating shipment of another 187 million units in fiscal 2009.[13] Nintendo also forecasts shipment of 177 million Wii software units for FY09, while the FY08 shipment was 119.6 million units.[12] In the same time frame the Nintendo DS is forecast to sell a further 28 million units.[21]
Annual Wii sales totaled 18.61 million, while DS sales hit 30.31 million units.[23] Software sales on Nintendo's two platforms are also strong, with million seller titles rising from 30 to 57 titles on the DS and from 5 to 26 on the Wii.[21] 'Because the sales of Nintendo Wii have already topped what is considered to be the up-limit line, it is not realistic to see any further growth in Japan,' spokesman Yasuhiro Minagawa told Thomson Financial News. 'But given the fact that DS is in a state of supply shortage outside Japan, we can expect sales growth in overseas markets,' he said.[20] The company posted $16.1-billion in sales and a profit of $2.48-billion, though the company has suffered losses related to the strengthening Yen on the dollar and Euro, with the company experiencing a foreign exchange loss of about $900-million in 2007. In 2008 the company expects about $117-million in forex losses, with 80-percent of Nintendo's business being doing outside of its home country Japan.[25] Nintendo Profits Up 48% To $2.5 Billion In Full Year Results Officials from Nintendo have released details of the company's full year results, for the period ended March 31st, 2008.[16] Net income will probably reach 325 billion yen ($3.13 billion) in the 12 months to March 31, 2009, from 257.3 billion yen a year earlier, Nintendo said today.[8] Net income will probably climb 26 percent to 325 billion yen ($3.14 billion) in the 12 months ending March 31, 2009, Nintendo said today. That missed the 337.1 billion yen median estimate in a Bloomberg survey of six analysts.[11]
Nintendo said that for the full year, net income rose to 257 billion yen (£1.25 billion), beating a consensus of analyst estimates compiled by Reuters.[22]
The company, which is valued at $82 billion (£41.6 billion), said that net income would rise by a more most modest 26.3 per cent to Y325 billion in the current year, and that operating income would climb to only Y530 billion -- 6 per cent below the average analyst estimate of Y566.5 billion.[22] The company, which is based in Kyoto, reported a group net profit of 257.34 billion, or $2.5 billion, compared with 174.29 billion a year earlier.[7] The company's revenues have now hit a whooping Yen 966.5 billion or 5.95 billion euros, which is a 90% increase on the 2006-07 financial year while operating profits enjoyed a 150% rise.[18] Revenue would increase by 8 per cent to Y1.8 trillion, the company said, even though it had factored in foreign-exchange losses of Y12 billion because of the expected appreciation of the yen against the euro.[22] The company also forecast that sales could grow 7.6 percent to 1.8 trillion yen. The firm enjoyed a huge 73 per cent year-on-year jump in revenues in its FY statement.[14]
Nintendo posted sales of more than 1.67 trillion yen, an increase of 73 percent over the prior year.[12]
Nintendo of Europe's sales were only slightly less at '620.4 billion ($6.0bn). Despite these figures, the ratio of overseas sales for the company rose from 66.5 percent to 80.6 percent.[16] Overall the Japanese division of the company saw sales of '1.43 trillion ($13.7bn), while Nintendo of America reported sales of '662.2 billion ($6.4bn).[16]
Sales were up by 73.0 percent over the last twelve months to a total of '1.67 trillion ($16.1bn), and profits up 47.7 percent to '257.3 billion ($2.5bn).[16]
"The profit growth figure is weaker than I'd expected,'' said Yoshihisa Okamoto, a Tokyo-based fund manager at Mizuho Asset Management Co., which oversees $26 billion of assets, including Nintendo shares.[11]
Growth is based partly on the success of the hugely profitable Wii console. During the 12 months ending March 31, 2008, Nintendo shipped 18.61 million Wii console to its distributors and retail customers globally, bringing the worldwide total to 24.45 million since its debut in November 2006.[24] Generally I would scoff at the whole shipped versus sold thing, but the last time I saw a Wii on store shelves was. actually I don;t think I've ever seen a Wii on store shelves. The console's tiny folding friend is doing great as well, with 30.31 million DS systems shipped over the course of the year for a total of 70.6 million - and they're expecting to ship 28 million more this year.[12] The game sold 1.8 million units in the Japanese market, and reports from Europe show pre-sales of the game have already been sold out. The U.S. market will have to wait until later in the first half of this year to receive the Wii Fit.[28] Games of note include Pokemon Diamond and Pearl (14.77 million units to date), the Brain Age series (23.81 million units to date), Wii Fit (1.85 million units in Japan) and Super Smash Bros.[21] Currently only released in Japan, Wii Fit has already sold a total of 1.85 million units.[16] Wii Fit has already proved a colossal success in Japan, selling a million units in less than month after it hit retail.[30]
To reach that 50m mark by March 09 they'll need to sell 2 million units a month. Considering Wii sold 721,000 in the U.S. alone last month, I'd say it was a realistic target, especially considering the ridiculous numbers they'll get through over Christmas. Consider that their supply constraints are beginning to ease off.[21] Brawl has sold 4.85 million units in the U.S. and Japan (a European release date was announced today of June 27th).[16] Brawl (1.61 million units in Japan and 3.24 million units in North America).[21]
Brawl fighting game and the imminent launch outside Japan of the Wii Fit home fitness program are expected to drive sales and help Nintendo shrug off unfavorable currency rates. [31] Nintendo's Wii is selling like hotcakes globally and one of the company's most anticipated games, Wii Fit, was launched yesterday in SA. The Wii Fit will hit local shelves on 5 May and will retail at R999.[28] We were told that there were new IP's coming to the Wii, and that it would be a new haven for third-party developers, but that has failed to materialize. They're out there, yes, but other than a few Capcom games, unless you have Mario as your mascot, you aren't making a profit. To me, it seems like the Nintendo of old, sticking to their antiquated guns as their third-parties rush to the exit door and into the arms of the competition. Heck, it seems like Nintendo is shoving them out the door sometimes.[12] BioWare president Greg Zeschuk said that the Wii is less like a game console and more akin to a toy, citing Nintendo's emphasis on casual gaming exper. Publisher Activision recently revealed that its Foster City, CA-based Underground Development studio will be closed by the end of May, GamesIndustry r. The BBC today announced that its iPlayer internet television service is now available to Nintendo Wii owners living in the United Kingdom.[2]
Sales of Nintendo's Wii jumped, as the company finally seemed able to get an adequate supply of the once elusive console into stores.[32] "Wii console sales are still on an upward trend,'' Koki Shiraishi, an analyst with Daiwa Institute, said before results were released. "I don't expect them to peak this fiscal year.''[8] _GAMERS SAVE AMERICA: With fears of a recession growing, many Americans are cutting back on recreation — planning shorter vacations, eating out less often, staying home instead of going to the movies. They haven't stopped buying video games: Sales jumped 57 percent in March compared with the same month last year. "You'd never know that the U.S. economy was under distress by looking at the video games industry sales figures," said analyst Anita Frazier of the NPD Group, the research firm that compiles those numbers.[32] The video game darling announced the Nintendo Channel on Wednesday, which will facilitate user-generated reviews of WiiWare games, followed by the announcement of record sales a day later.[29]
For the current year to March 2009, Nintendo aims to achieve another set of record earnings and sales.[20] Nintendo posted record sales and profits for the quarter ending in March.[29]
Tokyo - Nintendo Co reported record earnings for fiscal 2007 that ended in March, thanks to the strong popularity of game consoles, the company said Thursday.[3] Through March 31, 2008, Nintendo DS enjoys a life-to-date tie ratio of 5.24 games per system worldwide.[12] The Wii has seen a tie ratio of 6.07 games per system worldwide through March 31.[13]
With Nintendo's "Mario Kart Wii" and Rockstar Games' "Grand Theft Auto IV" still coming in April, analysts expect players to keep spending. [32] I would expect a new Zelda game in 2013 or so. No rush for Nintendo to extend its self to "fans" of the company and/or certain franchises.[12] "We can't expect the same kind of (DS) growth for Japan that we've seen in the past two years, but in the United States and Europe, there's still considerable room before we peak," Nintendo President Satoru Iwata told a news conference.[9] A firmer yen hurts Nintendo (other-otc: NTDOY.PK - news - people ) as it reduces the value of foreign currency-denominated assets which it reevaulates according to the exchange rate at the end of each fiscal year.[20] The company announced a full-year dividend for Nintendo shareholders of 1,260 yen per share (including the interim dividend of 140 yen already paid), 570 yen higher than the annual dividend of 690 yen paid one year ago.[12] Nintendo shares fell 1.4 percent to 57,900 yen before earnings were reported. The stock has dropped 13 percent this year, after more than doubling in each of the past two years.[8] Nintendo shares fell 0.3 percent to 57,884.1 yen in Frankfurt trading after the earnings were announced.[11]
Ahead of the release of the result, Nintendo closed Thursday down 0.7 percent at 58,200 yen.[20]
Earlier, MCV reported that Nintendo's FY operating profit had doubled year-on-year - with net profit up 47.7 per cent. [26] Nintendo has reported that its operating profit for FY 2007-2008 more than doubled on the previous year.[17]
We also have a report from Reuters in Japan and Wii wins hefty profit boost for Nintendo on Guardian Unlimited.[24] In addition to the strong game business, an anticipated reduction in foreign exchange losses will also contribute to stronger profits, according to the company. President Satoru Iwata revealed at a press conference that the company is planning to increase its Wii output to meet demand toward the year-end shopping season.[6]
At yesterday's launch function, Nintendo, through Core Gaming, challenged journalists to take a 25-day fitness test using the Wii Fit. The company said it will donate the review units of the five journalists who improve their body mass index the most, to the charity of their choice.[28] While I'm sure you would've liked to be the number one platform holder, the Nintendo Wii is an unstoppable powerhouse, selling a good 459,000 units more than you.[33]
I want to know why Nintendo isn't taking the Wii serriously. Why do they still allow developers, both first-party and third-party, to make Wii games with support for outdated controllers like the Gamecube and CC? They need to be offering kinesophobes exactly two options: take the plunge or don't play. It's the only way to move the industry truly forward.[12] One of the things that I often noted was that Nintendo is not doing enough to going after the PS2 market. It seems that noone really is interested in going after the PS2 market right now. Nintendo is sticking with its very succesful Blue Ocean strategy while Sony and Microsoft continue focus on consumers with a larger disposable incomes. Until Nintendo releases more games in line with what were/are major sellers on the PS2, and until Sony and Microsoft bring down the price of their flagship consoles to within $200-$250, the PS2 will continue to be its own market.[12] I enjoy my Wii for what it can do and I have several games that I had a lot of fun with. It amazes me how insecure people are that the Wii is leading the other consoles in sales, get over it already.[12] Sales of the Wii, featuring a motion-sensing controller that replicates user actions onscreen, are expected to climb 34 percent to 25 million consoles.[11] In total, 24.5 million Wiis had been sold since the device went on sale 18 months ago.[22] In the case of the Wii, a total of 18.61 million consoles were sold worldwide for a lifetime total of 24.45 million.[16]
Sales rose 73% to ¥1.67 trillion as it sold more Wii and DS devices than it expected.[5]
Exactly, I wish Sony would spend more time making people aware that things like HDD's, Wi-fi, online services and Blu-ray movie playback etc are free in the box and not expensive optional extras. In the UK MS are pushing the fact they have downloadable content for GTA IV, whilst simultaneously telling people at the end of GTAIV ads to go out and buy the '159 Arcade Console! What are those poor parents going to do when they realise that they're going to have to pay another '70 on a 20GB HDD to be able to get that content - '70 for 20GB! Also to correct the article's statement about the price cut - the sales figures quoted are based on the Xbox-loving USA so the price cut has nothing to do with it. In fact from the figures I've seen floating around the net the XBox was convincingly outsold in every Country in Europe by the PS3, despite the price cut!!! Amazing how they forget to mention that when they spin out their bold statements in their press releases isn't it.[33] The company is expecting a slowdown in 2008, with net income set to rise a more modest 26.3-percent and a mere 7.6-percent increase in sales.[25]
At the end of March, the company held outstanding cash equivalent of $3.6 billion yen and 1.7 billion euros. [20] Currency fluctuations and weaker U.S. demand contributed to the slower-than-expected growth, said Okamoto, who had estimated profit of 350 billion yen.[11]
Growth would continue in the year to March 2009, but at a more modest rate, Nintendo said.[22] I thought the Wii was supposed to be easy to develop for and I thought Nintendo said more developers have jumped on the Wii bandwagon.[12] All-conquering Nintendo has launched a brand new dedicated Wii Fit website ahead of the European release of its health-promoting title this Friday.[30] Sony said in January that it would stop selling the two original PlayStation 3 models in Japan and focus on the new version amid fierce competition from Nintendo.[4] The Wii sells for 25,000 yen (241 dollars) in Japan while the slimmed down version of PlayStation 3 has a price tag of 39,980 yen.[4]
The channel will be used to rate WiiWare games, compensation of sorts for the lack of demos, offer downloadble DS demos, as well as announcements on Nintendo happenings. A similar channel launched in Japan in November 2007 and features streaming game video and developer interviews. [29] It's also because Nintendo always seems to have another Mario game ready to release on the heels of the last one. They sell like perfume in Stinktown, meanwhile the third-party developers are left to pick up the crumbs. I'm not knocking the quality of the games, or suggesting that they're all the same. Mario games are very diverse, but they also choke out the marketplace.[12] First of all, how do you get sick of "Mario" games? Just because there is a short fat man in overalls in each of them doesn't make Mario Kart anything like Mario Galaxy or Mario Strikers Charged. People still like Mario because, in general, games with his name on it still generally represent the most solid, polished, and entertaining games in their genres. Their increased appeal also comes from the fact that they are kart racing games, party games, fighting games, etc in a world where I can't seem to find anything on the shelf that isn't primarily gray and brown and revolves around the collection and use of "ammo." For every one person that gets tired of Mario games (/facepalm), there are the rest of that million gamers that grew up with Mario and realize he still packs some of the best games in the industry and aren't horribly superficial. RE4 is easily the best incarnation by FAR and since like, 3 people actually played Okami on the PS2, this might as well be a first release, and the people who did play on PS2 just be called beta testers.[12]
I'm pretty sure that was when Mario Kart first came out on the Super Nintendo. Very much enjoyed it! However, I can't say that I'm thrilled that Nintendo is making such a killing by flogging a game that's half as old as I am (and I've never purchased a Madden game in my life for this reason).[12]
"As a bunch of geeks we have to say, 'Bernie, hats off to you,'" Popcap spokesman Garth Chouteau said. _NEW IN STORES: Before "Mario Kart Wii" starts its engines next weekend, Nintendo warms up with "Pokemon Mystery Dungeon: Explorers of Darkness" and "Explorers of Time" for the DS. Square Enix brings its role-playing expertise to modern times in "The World Ends with You," for the DS.[32]
Assassin's Creed Passes 6 mln November 2007's Assassin's Creed has surpassed 6 million units sell-in worldwide, publisher Ubisoft said Thursday. [23] The total number of million selling titles for the format increased from 30 to 57 over the course of the year.[16]
SOURCES
1. The Associated Press: Nintendo's profit surges on strong sales of Wii, DS
2. Nintendo Sells Over 25M Wii, 70M Nintendo DS Units; FY2008 Sales Exceed $16B, Profits Over $2.4B - Shacknews - PC Games, PlayStation, Xbox 360 and Wii video game news, previews and downloads
3. Nintendo reports record earnings for fiscal 2007 - Business
4. AFP: Nintendo operating profits double amid brisk Wii sales
5. Free Preview - WSJ.com
6. Nintendo Forecasts Record Earnings in FY 2008
7. Nintendos profit rises 47% - International Herald Tribune
8. Bloomberg.com: Worldwide
9. Javno - Economy
10. Nintendo profit jumps 60% on Wii boom - Breaking News - Business - Breaking News
11. Bloomberg.com: Asia
12. Nintendo Wii Production: Nintendo Talks Profits, Sales, And Increased Wii Shipments
13. Video Game News, Video Game Coverage, Video Game Updates, PC Game News, PC Game Coverage - GameDaily
14. Nintendo forecasts profit rise of 26% this year - news - www.mcvuk.com
15. BBC NEWS | Business | Wii raises earnings at Nintendo
16. Gamasutra - Nintendo Profits Up 48% To $2.5 Billion In Full Year Results
17. Nintendo operating profit doubles in record year - news - www.mcvuk.com
18. Nintendo enjoying big time boom
19. Nintendo aims to sell 25 mln Wii units in 2008/09 | Markets | Markets News | Reuters
20. Japan's Nintendo operating profit more than doubles on strong game sales UPDATE - Forbes.com
21. Wii sales to reach 50 million by March 2009 - VideoGamer.com
22. Wii sends Nintendo profits up 48 per cent - Times Online
23. Nintendo Reports Record Operating Profit : Next Generation - Interactive Entertainment Today, Video Game and Industry News - Home of Edge Online
24. Nintendo sales up 73% as Wii sales reach 24 million | Technology | Guardian Unlimited
25. Nintendo To See Slowdown In 2008 After Posting Bumper 07 Results - Tom's Guide
26. 25m worldwide sales for Wii - news - www.mcvuk.com
27. Nintendo's profits go Wii - Asia entertainment news from Variety - varietyasiaonline.com
28. ITWeb :Wii Fit for fun
29. Nintendo unveils new Wii channel, makes lots of money | Wii News | GamePro.com
30. Nintendo launches Wii Fit website - news - www.mcvuk.com
31. Nintendo Q4 jumps 60 pct on Wii boom, outlook modest | Technology | Reuters
32. The Associated Press: Week in video-game news
33. UCSD Guardian Online
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