Nintendo results show big decrease in profits

7 years ago by in Around the world

Photo by John.Karakatsanis

Nintendo announced a sharp profit decrease for the fiscal year ended March 31 and the trouble seems to continue. The president of the company said that sales of the 3DS handheld game console, launched in late February, were disappointing not only in All Japan news, but also in United States and Europe.

The company said its net profit decreased by 66 percent in the fiscal year, to ¥77.62 billion, from ¥228.64 billion a year earlier.

Annual sales also decreased, by almost a third. Nintendo reported sales of Y1.014 trillion, down 29 percent.

“Nintendo has not suffered any direct damage which will significantly affect our production. However, it can be predicted that there will be an indirect impact from individual consumption patterns,” the company said.

The 3DS console has had a slow start. The company only sold 3.61 million units by the end of March, short of its 4 million units forecast. The console was launched on Feb. 26 in All Japan news, while in the United States and Europe it went on sale in the last week of March.

"Sales of the 3DS have been weaker than expected since the second week of launch in the U.S. and Europe," even though the first week was solid, said President Satoru Iwata at a briefing for investors.

Nintendo has however good hopes for the current fiscal year. The company forecasts a 8.4 percent rise in sales and a 41.7% increase in earnings for the year ending March 2012. [Wall Street Journal, All Japan newsToday]

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