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Nintendo Profits Up 96% In Nine Month Results

Nintendo Profits Up 96% In Nine Month Results

January 24, 2008 | By David Jenkins

January 24, 2008 | By David Jenkins
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Officials from Nintendo have released details of the company’s financial results for the nine months ended December 31st, during which time the company has seen net sales increase by 84.7 percent on the same period last year.

Despite significant hardware stock problems for the Wii, and to a lesser extent Nintendo DS, the company saw net sales rise to ¥1.32 trillion ($12.36bn) over the last nine months. Operating income rose by 135.1 percent to ¥394.0 billion ($3.69bn) and net income rose by 96.3 percent to ¥258.9 billion ($2.42bn).

As a result of the positive results and continued strong demand, the company has raised its net sales forecast for the full year to ¥1.63 trillion ($15.27bn) – as predicted earlier by Wedbush Morgan analyst Michael Pachter. The company’s net income forecast remains the same at ¥275.0 billion ($2.58bn).

The company also released detailed worldwide hardware and sales information, with the Nintendo DS now having sold 64.79 million units worldwide, of which 21.66 million have been in Japan, 20.18 million in North and South America and 22.94 million in the rest of the world.

Software sales for the Nintendo DS have hit a total of 330.87 million, with 108.46 million sold in Japan, 109.16 million in North and South America and 113.25 million in the rest of the world. As a result, the Nintendo DS’s attach ratio of software to hardware can be calculated at 1:5.1 on a worldwide basis.

Hardware sales for the Wii now total 20.13 million, with 4.99 million consoles sold in Japan, 8.85 million in North and South America and 6.30 million in the rest of the world.

Software sales for the Wii are currently at 113.19 million worldwide, with 16.83 million units sold in Japan, 60.90 million in North and South America and 35.46 million in the rest of the world. This gives the Wii a worldwide attach rate of 1:5.6 – this is more than the Nintendo DS but it does include bundled Wii Sports sales from the West in the software sales total.

Sales for the Nintendo DS worldwide over the nine months were put at 24.5 million units, with Nintendo citing the most popular new software titles as The Legend of Zelda: Phantom Hourglass, Mario Party DS, Pokemon Pearl/Diamond and Brain Age 2. The Wii sold 14.29 million consoles in the same period, with the most popular new games proving to be Wii Fit, Super Mario Galaxy and Mario Party 8.


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