Feeds

Nintendo's Q3 income falls 43%

Not selling enough GameCubes and DS games

  • alert
  • submit to reddit

The Power of One Infographic

Nintendo's earnings slumped during the Christmas quarter, the videogame pioneer revealed today, despite a small year-on-year increase in sales.

For the three months to 31 December - Nintendo's third quarter of FY2005 - the company's sales reached ¥231.4bn ($2.22bn), up 1.4 per cent on the year-ago quarter's figure, ¥228.2bn ($2.19bn).

However, net income fell over 43 per cent from the ¥37.4bn ($359.3m) reported this time last year to ¥21.3bn ($204.6m), a figure calculated by subtracting the company's published first-half earnings from the nine-month total it reported today.

Nintendo blamed the decline on slow sales of its Nintendo DS titles, falling demand for the ageing GameCube and the strength of the yen over the US dollar.

DS software may be proving hard to shift but the handheld console itself has proved something of a success. Nintendo said it had shipped 2.84m of the machines to the US and Japan since its late November launch. It also upped its forecast for the number of units it will have shipped by 31 March, the end of its current fiscal year, from 5m to 6m.

However, it now expects to ship 10m copies of DS games by the same date - well down on the 15m it forecast in November 2004. To date it has shipped 5.01m copies, Nintendo said. In the first nine months of FY2005, it shipped 72.6m GameBoy Advance SP titles, up from 61.5m this time last year. GBA unit shipments were up too: from 13.2m last year to 13.6m.

However, GameCube shipments slumped. Some 3.5m consoles shipped in the nine months to 31 December 2004, down 20 per cent on the same period last year. Analysts attribute the decline to a lack of popular games.

Nintendo said it now expects to sell 4m GameCubes in the year to 31 March, down from its previous forecast of 4.5m units.

It also cut is full-year income forecast to ¥70bn ($672.5m) from ¥90bn ($864.6m), a reduction of just over 22 per cent, and its sales forecast from ¥540bn ($5.19bn) down 3.7 per cent to ¥520bn ($5bn). ®

Related stories

Sony PSP outships Nintendo DS
Electronic Arts' sales, profits slide
Sony PSP ship total hits 800,000
'EA leak' yields late 2005 Xbox 2 ship date
Nintendo sets DS date down under
Nintendo ships 2m DS consoles worldwide
Nintendo preps DS media module
Nintendo lauds 500,000 first-week DS sales
Nintendo to spill Euro DS plans in January

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.