Nintendo expects falling profits for fiscal 2009

As predicted by analysts late last year, Nintendo is forecasting a drop in annual profits for the first time since the Nintendo DS's 2004 introduction. It's not a loss, just a reduction in profits -- Nintendo is still forecasting profits of ¥230 billion ($2.43 billion), compared to fiscal 2009's ¥279.1 billion ($2.95 billion). The AP's Yuri Kageyama notes that the Wii price drop, as well as slower sales early in the fiscal year (reflected in the first half earnings report), negatively impacted Nintendo's profits.

Analyst Yuta Sakurai thinks Nintendo is being too pessimistic (or just not optimistic enough, considering that the subject is enormous profit). "We are expecting the results to be better than the company forecasts for the Wii," the Nomura Securities analyst said. "Christmas shopping was strong." Nintendo did have an extraordinary December, with both the Wii and the DS breaking three million units each just in the US. It then went on to break sales records in the first two months of 2010. Perhaps Sakurai is correct, and Nintendo is just being modest about its profits. We'll find out on Thursday when Nintendo releases its annual earnings.

[Via 1UP]

Reader Comments (37)

Ouchies.

"...profits of ¥230 billion ($2.43 billion), compared to fiscal 2009's ¥279.1 billion ($2.95 billion)."

Yeah, they better start saving those pennies. Tough times.

Hence the "Ouchies."

Just shit out a new a Zelda and/or Mario, Nintendo. Or hell, Pokemon Mint Jelly.

CP has the perfect plan of attack. None of us can resist the powers that be such as Zelda and Mario. Pokemon is just an added bonus!

Yeah I think we've all seen that even dog turds with a picture of Mario or Pokemon will sale like hotcackes.

NSMB Wii and Pokemon Ranch is proof of that.

Man, Nintendo is making so much bank they're bitching about not having profits that are as massive as they're used to. I guess they'll just have to put the new headquarters/skyscraper made out of 1 yen bills off a week or two.

Bitching? Really?

Besides, they have to make these kinds of announcements for the sake of the shareholders.

that is seriously a ridiculous amount of profit

Check out the top 5 oil companies in the world and you'll have a heart attack.

Man things sure have turned around since the beginning of this generation. Its interesting to see how the companies various strategies have paid off over the course of the past few years.

First comes a price drop
Then new colors arrive
Then bundles show up
And then....... E3 2010 begins

I remember Iwata talking about how colors normally come later on in a console's lifespan, and now colors are showing up. I'm not saying "Wii 2 at E3 this year", I'm just saying that all the different elements are falling into place. After the batch of games announced at this year's E3 hit shelves and Wii sales begin to slow down once again, I'm expecting some sort of a refresh or new hardware.

Thoughts?

Doubt it. I remember just last month Nintendo said they aren't even thinking about a Wii successor right now, or something along those lines.

Then comes Ishboy with a baby carriage!

That's the same thing they said about the DS the day before they announced the DS Lite.

Traceur,

True, but as evidenced by the release of the DS Lite, we can't really trust Nintendo when it comes to these things.

Remember? Nintendo flat-out denied the DS Lite, saying that a hardware revision would be way out in the future. And then BAM, next day, Nintendo announces the DS Lite. Joystiq article here: http://www.joystiq.com/2008/04/16/nintendo-denies-ds-model-we-smile-patronizingly/

So Nintendo can do whatever they want whenever they feel the time is right, I just feel like after this year's batch of first-party software, Nintendo may be moving on to something different.

Or maybe the Wii Vitality Sensor will be revolutionary enough to carry the system a few more years... Who knows ;)

Wii 2 = not happening yet, imo. They have 3DS to (properly) announce, remember? And the new Zelda game to show off (then they can quietly announce a delay the next month). As well as, yeah, the vitality sensor...

If there's anything Wii hardware related I agree maybe it will be more colours or new bundles.

Wii 2 next year, I think.

The financial results might also be considering possible reduced sales of DS hardware as people wait for 3DS? Which should become more evident once they announce it properly.

@me - ugh just realised I wasn't clear - when I said Wii 2 next year, I meant it seems likely to me they'd announce it next E3 for release around the end of that year or in early 2012.

i don't think they will announce Wii 2 but rather an upgraded version of the Wii. example: DS phat and DS lite (you already know the feature's of those two system's so i don't have to tell you what they are capable of). DSi and DSiXL: storage, added camera, DSiWare, slightly bigger. you get the idea. I'm going to take a shot in the dark here and say that either this year at E3 or next year at E3 that they will announce an upgraded Wii that come's with a hard drive, probably an improved OS, ability to download Wii retail game's demo's, improved online multiplayer system and i don't know what else. but yeah that's what i think (and hope) they will do.

it prints money

As with all Nintendo articles.

Needs more toner

It prints... slightly less money.

This is more fitting. Kudos.

The fad is over!

It's time for the new "fad"...3D!

First real proof the world might end on 2012. Confirmed!

it won't hurt them much, the 3DS will most likely help stop the "bleeding" as will the Black Wii....now just get out games more CORE gamers want

There's quite a bit, you just have to look. Most retailers wont carry them in stores. I manage to have more Wii games then I do PS3. Out of my Wii games there's a party game (Raving Rabbids 2[also ignoring Wii Sports and Wii Sports resorts then I'd have three. But those came with the hardware, so ohwell.]). The only main Nintendo releases I've for the Wii is MP3, and MP:Trilogy.

i think he know's there's quite a bit. what he's trying to say is to release MORE core game's and to continue to do so. for instance if in one month the Wii has about 2 core game's the release maybe 3 core game's a month and continue to do so. trust me i am not saying that the Wii is lacking core game's but none of us want developer's to stop right there and no longer develop anymore core game's for about a year or so.

Yeah, problem comes is that it's not Nintendo's fault third party devs are treating it asa minigame dump out zone. Just third party devs don't see the market there. Because everyone a "core" game gets made it's either pirated to hell, and sells bad. Or the game is utter trash and sells bad, and they use those as reasons to not make core games.

Well if you go up high enough eventually you can only go down, even if it is a tiny margin

I should start a business to re-energize manufacturing of SD television sets for all the Wii owners. Who wants to invest in my company?

*ahem*

Braid sucks.

Joystiq, who makes all these awesome JPGs that periodically pop up on your site and make my day? Send them my love.

Is that a photoshop of a photoshop?

Either this is because the fact that virtually everybody in the world already have a Wii/DS, or it's a tactic so when the actual result comes, they can say "Hey, it's not as bad as we thought, so that means we did a good job."

Nintendo expects falling profits for fiscal 2009

Reader Comments (37)

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