Nintendo Sees Financial Performance Decline

Despite Decline, First Three Fiscal Quarters Represent Third Best Performance in Company History

January 29, 2010 – Nintendo reported the third best performance in company history over the first three fiscal quarters of 2009, ending December 31, but saw a decline across the board compared to 2008’s results.

In a press statement issued by Nintendo, the company reported that they saw net sales, operating income and net income fall despite posting the third best performance in company history. Nintendo has seized a large portion of the video gaming market share and moreover, it controls nearly half of all software sales for its Wii platform. Titles such as Wii Fit Plus, New Super Mario Bros. Wii and Wii Sports Resort saw sales of more than 10 million copies each in the past year, which, for any other company would represent massive sales, but, given Nintendo’s massive success over the last several years, it wasn’t enough to keep the company from losing ground in the recession.

The statement specified that a large reason for the decline in profits was the declining sales of the Wii and DS, saying “The net sales and operating income declines in comparison to the record-breaking previous year primarily stem from year-on-year decreases in Wii hardware and Nintendo DS software sales, a price cut for Wii hardware, and the significant impact of a stronger yen.”

Nintendo also revealed that more than 67 million Nintendo Wii’s have been shipped in addition to 510 million software units. The DS has seen total sales of over 125 million units and more than 688 million software units.

Despite seeing an operating income decrease, there is a lot of silver lining for Nintendo. They still control a lion’s share of the market and they are still moving a massive of amount of product.

Source: Nintendo