Fri 7 May 2010
Nintendo is still making gobs of money, but now it seems the gobs are slightly smaller. The company has announced that its annual group net profit was "only" 228.64 billion yen, or about $2.43 billion, for the fiscal year that just ended. The fiscal year before that saw Nintendo's group net profit at 279.09 billion yen, or about $2.99 billion.
What happened? The Nintendo Wii saw a price drop from $250 to $200 in North America, and demand for systems and games is down year over year. Both the Nintendo Wii and Nintendo DS have had amazing runs in terms of units sold, but that momentum is impossible to sustain forever. A strong yen is also partly to blame for the economic slip, as Nintendo reportedly earns 80 percent of its profits outside of Japan.
The company is expected to show off the next iteration of the DS line with the upcoming Nintendo 3DS at E3 this year, and of course Super Mario Galaxy 2 is on the horizon; Mario games continue to be strong draws on Nintendo's hardware. A new, black bundle that includes Wii Sports Resort and the Motion Plus peripheral are also days away from launching in the United States.