News Article

Nintendo Profits Fall for the First Time Since 2004

Posted by Zach Kaplan

Still made a few billion, though

Associated Press recently reported the Big N's earnings for the fiscal year, which ended on March 31st. The company forecasts their first drop in profit in six years, at 230 billion yen (2.4 billion USD) profit, down from 279.1 billion yen (2.96 billion USD) profit in 2009. Analysts say that this is most likely due to the company's slashing of the Wii's pricetag as well as the strengthening of the Yen against other currencies.

Yuta Sakurai, an analyst for Nomura Securities Co. in Tokyo, has high hopes in spite of this report, saying:

We are expecting the results to be better than the company forecasts for the Wii. Christmas shopping was strong.

Whether the release of the 3DS (or any unsuspected surprises) will boost sales remains to be seen, but the minor reveal did wonders for Nintendo's share prices.

[via businessweek.com]

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User Comments (26)

pixelman

#1

pixelman said:

Iwata stopped by the house yesterday. Said he couldn't get a gold ferarri this year. He was almost in tears.

VilicoBRA

#5

VilicoBRA said:

Only 2.4 billion!? Nintendo is doomed! If heaven is for the poor.
But I heard that they leave it up to the gods and do the best they can...
Hmmm. Maybe they're lucky! XD

Hardy83

#7

Hardy83 said:

Yeah, making 2.4 billion is a lot for you but you try and tell investors it's no big deal profits dropped half a billion dollars.

At least it means this year we'll see kickin' stuff from Nintendo, since their best software and hardware are released when they start getting hungry for more money.

Oregano

#8

Oregano said:

@Hardy83: Investors aren't as important to Nintendo as most companies though because of the fact that Yamauchi owns a lot(the majority?) of Nintendo.

And making 2.4 billion is A LOT, especially in the current climate. The majority of businesses would love to be able to say they only made 2.4 billion.

Hardy83

#10

Hardy83 said:

"@Hardy83: Investors aren't as important to Nintendo as most companies though because of the fact that Yamauchi owns a lot(the majority?) of Nintendo."

Yamauchi is still an investor, Nintendo still has other investors. Nintendo is a openly traded company.
They are the ones that back Nintendo with funding and stock value, they matter just as much as any other company.
If Iwata said something along the lines of what you said, I bet you within a month he'd be out the door.

And yes, 2.4 billion is a lot, but a drop in half a billion is a lot also.

But I wouldn't worry, Nintendo always has tricks up it's sleeve. In fact I bet you anything the HD Wii or Wii 2 is already done and their just waiting for profits to drop even more. On top of the 3DS probably coming out this year.

Oregano

#13

Oregano said:

Well of course Iwata would be out of the door if he said it!:P

What I meant is that Yamauchi's interests are what are most important to Nintendo and he'll always be investing in Nintendo so they have a security blanket that most other companies lack.

EdEN

#14

EdEN said:

Earnings for THIS fiscal year should be in excess of 3.5 billion dollars considering the release of SMG 2, Metroid, Sin and Punishment and the 3DS. Should Zelda Wii also release, up the amount to 3.7 billion dollars.

super-nintendo

#21

super-nintendo said:

With all the Wii and Virtual Console games I'm buying including the 3DS and a launch game for that system, Nintendo should hit $3 BILLION in 2010. :)

LordJumpMad

#23

LordJumpMad said:

Maybe they will make more Money if every thing on Virtual Console , was
FOORRRRRRRRR FREEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE.

Hay, one can Dream

Pj1

#24

Pj1 said:

Nintendo would make an extra $600 million if they announce a DSi VC service, Super Mario all stars for VC, chrono trigger and if they can do a small deal with EA to bring desert strike to VC, also they might make a couple of million if they bring out the home migration kits! also offical nes, snes, the 6 button mega drive pad and the N64 pad offically for the Wii...

Oh then again I can dream...

Nintendoftw

#25

Nintendoftw said:

hey should make the 3DS 200$ when it first comes out and a 100$ price drop if you give them your DSi.

nintendopower33

#26

nintendopower33 said:

Wow, this is shocking! Nintendo is the best company that makes the highest profits of all...I wonder what happened...

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