Nintendo rocked by a rare dip in profits
By Yuri Kageyama |
May 7, 2010, Friday
|
Print Edition
Print Edition
JAPANESE game-maker Nintendo suffered its first drop in annual profit in six years yesterday, hit by a price cut for the Wii home console and sliding global sales.
The maker of Super Mario and Pokemon games said net profit for the fiscal year ended March 31 fell 18 percent to 228.6 billion yen (US$2.5 billion).
Kyoto-based Nintendo Co, which does not break down quarterly numbers, said annual sales slipped 22 percent to 1.434 trillion yen.
Nintendo is expecting tough times to continue. It forecasts sales to fall 2.4 percent to 1.4 trillion yen for the fiscal year through March 2011 and expects earnings to slide 12.5 percent to 200 billion yen.
But the firm expressed confidence in its game machines. It is banking on a handheld that allows for 3D games without the need for special glasses and which is set to go on sale this fiscal year.
Nintendo is facing intense competition from Microsoft Corp with its Xbox 360 and Japanese rival Sony Corp, which makes the PlayStation 3. Both are also bringing 3D gaming to their home consoles although those games require special glasses.
Nintendo's handheld may also face a challenge from smartphones like the iPhone, which are popular.
Company officials have shrugged off such concerns, including fears about the threat from the iPad, saying they know the game business.
Sales of the Nintendo DS portable series, including the DSi XL with larger screens, which went on sale overseas in March, totaled 12.3 million in the Americas.
Nintendo shares slipped 3.3 percent to 30,650 yen in Tokyo trading yesterday.
The maker of Super Mario and Pokemon games said net profit for the fiscal year ended March 31 fell 18 percent to 228.6 billion yen (US$2.5 billion).
Kyoto-based Nintendo Co, which does not break down quarterly numbers, said annual sales slipped 22 percent to 1.434 trillion yen.
Nintendo is expecting tough times to continue. It forecasts sales to fall 2.4 percent to 1.4 trillion yen for the fiscal year through March 2011 and expects earnings to slide 12.5 percent to 200 billion yen.
But the firm expressed confidence in its game machines. It is banking on a handheld that allows for 3D games without the need for special glasses and which is set to go on sale this fiscal year.
Nintendo is facing intense competition from Microsoft Corp with its Xbox 360 and Japanese rival Sony Corp, which makes the PlayStation 3. Both are also bringing 3D gaming to their home consoles although those games require special glasses.
Nintendo's handheld may also face a challenge from smartphones like the iPhone, which are popular.
Company officials have shrugged off such concerns, including fears about the threat from the iPad, saying they know the game business.
Sales of the Nintendo DS portable series, including the DSi XL with larger screens, which went on sale overseas in March, totaled 12.3 million in the Americas.
Nintendo shares slipped 3.3 percent to 30,650 yen in Tokyo trading yesterday.
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