Nintendo profits drop by 60 per cent

By Matt Martin Published 30 July, 2009

Money-printing licence expires.

Nintendo's profits for the first quarter of the financial year are down by 60.6 per cent, due to a fall in demand for the Wii and the strong yen.

The company made ¥42.3 billion in the three months ending 30th June, down from ¥107.2 billion a year ago. Net sales were JPY 253.4 billion, compared to JPY 423.3 previously.

DS hardware sales for the quarter stood at 5.97 million units - down from 6.94 million a year ago. Software sales fell from 36.69 million to 29.09 million, though Pokemon Platinum Version still did all right.

Wii sales were down by more than half to reach 2.23 million units. Last year over 40 million games were sold for the console, but this year that figure was 31.07 million.

"There were fewer blockbuster titles that briskly drove hardware sales this June quarter versus the same period a year ago when titles like Mario Kart Wii and Wii Fit were launched in overseas markets," said Nintendo.

The company expects to hit targets of 26 million Wii sales and 30 million DS units for the full-year, and make an operating profit of JPY 490 billion.

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Comments (55) Latest comment 3 years ago

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  • Yossarian #1 3 years ago

    Sooner, not later, they are going to regret not doing more to win over/continue to court the hardcore.

  • mingster #2 3 years ago

    how much is 490 Billion yen in uk pounds?

  • mowgli #3 3 years ago

    Even soccer moms get bored of waggle wank fests after a while.

  • BabyJesus #4 3 years ago

    @Yossarian when that day arrives they will probably have enough in the bank to fund new 'hardcore' ventures.

    Not really surprised by this, what with the recession etc which will hit the casual games/consoles harder than hardcore ones, as hardcore gamers are more likely to buy more games to sit in and save money than casual gamers who are more likely drop games from their expendable fund list for other things.

  • Invisible_Cow #5 3 years ago

    What's that? Casual gamers don't spend a lot on games and peripherals? Whoda thunk it?
    Maybe now they'll think about releasing some real games, instead of 5-minute gimmickfests.

  • Kremlik Verified Co-Founder, Crash To Desktop #6 3 years ago

    Main reason for the drop-off? EVERYONE that wants one, owns one...

    I agree with Yoss, this would have happened later if we had more actaly first party games, but it was going to happen either way..

    Unless Galaxy 2 and Other M pick up sales, or whatever addon Nintendo are working on doesn't make money - next up the WiiHD

  • stevetuck #7 3 years ago

    only ¥42.3 billion? shit NINTENDO IS OVER!!!

  • Vistrix #8 3 years ago

    Sony are finished.

    Oh wait...

  • kangarootoo #9 3 years ago

    This is what happens when your revenue stream is based on selling hardware (that everyone only needs to buy once) instead of selling a continually renewed supply of quality games.

    Of course, they are hardly going to be trundling dwon to a carboot sale with their kitchen gadgets any time soon, but I wonder what this means for the future of the platform? If selling a hardware platform is your thing, once the peak has been hit you might have to start thinking about releasing the next platform...

  • Praetorianer #10 3 years ago

    Yeah, how hardcore!

    [link url=http://www.eurogamer.net/a rticles/playstation-3-psp-and-software-sales-down-for-sony_0
    ]http://ww w.eurogamer.net/articles/playst...[/link]

    It's recession and the strong Yen, or why does the superoverkillhardcore-oriented Sony suffer as well, not being anywhere near making profit? PS2 outselling PS3 and PSP?

    268 Million $ loss, that's what I call hardcore.

  • Xerx3s #11 3 years ago

    "@Yossarian when that day arrives they will probably have enough in the bank to fund new 'hardcore' ventures. "

    They will have the money but will they have the intent? It will take more than money to make a change in policy like that. I highly doubt that nintendo will suddenly change policy after 20 years and come up with a couple of new franchises every generation that they will firmly back.

  • mens_rea #12 3 years ago

    Too right Yossarian - I really couldn't care less about Nintendo at this stage - I've been a once hardcore Nintendo fanatic, but now after years of casual rubbish, and identikit sequels I've abandoned ship and just don't care about what Nintendo does anymore.

    Maybe if they start releasing proper games again I might get my interest in them back once more, but it doesn't look likely anytime soon.....

  • stevetuck #13 3 years ago

    42,300,000,000.00 JPY

    =

    269,674,355.80 GBP

  • WiseGuy #14 3 years ago

    @ Mingster

    Current rate is 156.8 so..... £3.1 billion roughly

  • Xerx3s #15 3 years ago

    Praetorianer: Because generally sony isn't in the "superoverkillhardcore" corner. You are also comparing apples and oranges because the pricepoint of the PS3 is very high. When you look at the 360, you see that they are the only ones who have increased their sales.

    Good price + hardcore/cult games = good base sales any time of the year.

  • paulf #16 3 years ago

    I'm not sure the 'money-printing licence' has expired its just the amount of money they are making has shrunk which isn't much of a surprise, and they still are making shed loads of money and selling loads of consoles, and unlike sony and ms nintendo make money on each console sold. Be interesting now they have the installed user base how they convince these people to buy other games

  • andywilkie35 #17 3 years ago

    God I hope they release a new Zelda soon. Might get my Wii out of the garage

  • SpaceMidget75 Verified Senior Software Developer, Minerva Computer Services #18 3 years ago

    I can understand the drop in Wii hardware sales for the reasons mentioned above, but what is far more interesting is the fact that game sales have dropped.

    The fact that there are actually significantly more Wii's in peoples homes than the same period last year makes the drop in games worse than the figure actually indicates.

    I've always said that Ninty could continue to sell Wii's virally for a long time (and they have) but eventually those casuals stop buying games. I've seen it with my own eyes with loads of Wii owning friends.* They've got Mario Kart(usually in a bundle) and they've got Wii fit, but that's pretty much it save for some games they bought in the first six months when they were 'in to' their new toy.

    I suspect a price cut will come before Xmas now.

    * I don't mean EG owning Wii users. I'm talking about the large group of people I know that haven't bought a console since they owned an Atari VCS or a Speccy. ;)

  • alimokrane #19 3 years ago

    Well they are still making a profit, it's just less. hardly a worrying sign for them business-wise.

    I doubt the casual market is saturated to be honest. A price cut will pu them right back where they were. After all, week-on-week, they are still outselling 360+ps3 combined-ich
    Edited by 1 at 30/07/09 @ 12:20

  • beastmaster #20 3 years ago

    Game Over? Not very likely. They've managed to make millions by putting consoles in homes/hands most others cannot reach. But casual is casual in any form. Take it or leave it. Looks as though they're leaving it for now and not buying.

  • CallousB #21 3 years ago

    Unsurprising that software/hardware sales have dropped. Last year they had Mario Kart,Wii Fit and Smash Bros (3 of the top 5 selling games this gen on a single format)..this year they had the underperforming Punch-Out and not much else in regards to 1st party software (they should have churned out another Mario Party).

    Still it would be foolish to write them off (certainly in regards to software sales).

    Wii Sports Resort, Wii Fit Plus and New Super Mario Bros will all be massive sellers with crazy legs...and a western release for the Black Wii pre-Christmas certainly won't hurt. Just a shame they don't have a big hardcore Motion Plus title due this year.

  • jaguarwong #22 3 years ago

    Those are entirely surreal amounts of money.

  • Eraser #23 3 years ago

    You're all acting like Nintendo messed up, but fail to consider a few things:

    1. The Wii is aging. There's no surprises that sales dropped. They had to sooner or later.
    2. The current economic situation.
    3. They're still making a large profit and Nintendo have huge money reserves.

  • MBar #24 3 years ago

    40% of a fuckload of money is still a fuckload of money.

    Technically speaking, of course.

  • Eraysor #25 3 years ago

    Great news. The waggle festival may be coming to an end.

  • Yossarian #26 3 years ago

    "2. The current economic situation."

    ...which is more troublesome for the Wii than, say, the 360, because the majority of people who would buy a Wii and Wii software will see those as luxury purchases in a recession, whereas the majority of people who would buy a 360 and 360 software (e.g. most of the people on the EG forums) will continue to do so because it is a core hobby for them.

  • Praetorianer #27 3 years ago

    @Xerx3s

    Of course I was exaggerating, because of all the fanboys/haters here. Sony had a different approach and concept than Nintendo, but they definitely share a common target audience, so I am not comparing apples and oranges. While Nintendo also tried to reach a completely new audience and bring them closer to video games, Sony tried to cater to the high-tech crowd with both of their systems, the PSP and PS3. They failed with both of them. One can say that Nintendo's concept was born out of a necessity, but it sure worked out for them with MS and Sony trying to catch up by using a similar, albeit late approach to reach the same crowd as Nintendo already did and does.

    Another factor is the market saturation. While Microsoft may have increased it's sales, one has to see where they are coming from. The XBox sales figures in Japan are a desaster and didn't meet expectations. The PS3 is behind its expectations in Japan as well as overseas, due to its high price and the weak software available at launch. Nintendo on the other side has sold so many consoles that it's just a question of market saturation. The growth rates have to get lower as far as hardware sales are concerned.

    I personally have no preference for either manufacturer, but I don't like seeing the Sony/MS fanboys always booing Nintendo and vice versa.
    Edited by 1 at 30/07/09 @ 12:27

  • influenceuk #28 3 years ago

    wow, this story and the Sony one. Funny that sales are down compared to last year. I suppose the word recession is not in Console makers dictionaries.

  • patchbox360 #29 3 years ago

    hahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha hahahahahahahahahahahahahaha

  • Darren #30 3 years ago

    I'm actually surprised that it has taken this long for Wii sales to drop really but it had to happen as the market becomes more saturated. Surely everyone who wanted a Wii has one by now?

    As for the game sales dropping 25%, well I'm a statistic because I've bought a staggering ONE game for my Wii since June 2009, and that's the £15 Klonoa last month. There's been nothing else of interest released on the format for me, not even Wii Sports Resort holds much appeal having had a go on it at a friend's. I'm seriously considering selling my machine before Christmas for that reason and it's only the thought of a new Zelda or Mario Galaxy game that is stopping me.

    Both my parents and neices have tired of their Wiis already after just 18 months and rarely use theirs. Granted they aren't exactly hardcore gamers and never will be but between them they've bought a total of... wait for it... TWO games! :o

  • anomagnus #31 3 years ago

    If any one really thinks Nintendo is now going to come running back to the hardcore market, you're dreaming.

    Firstly, their machine isn't built for it, and secondly, neither are Nintendo.

    Lets be honest here, they haven't adequately served the Hardcore market since the SNES.

    Now, i'm sure people will scream and point to games from every machine since the N64, but my point is, that each generation of Nintendo machines has been characterized by 6-12 twelve excellent titles, and fuck all else.

    The reason the PS2 trounced the competition at the time was it had a massive library, and its collection of great games virtually equaled Nintendo entire library, dross and all, of both the N64 and Game Cube

    The same is now true of the 360. I know people piss on the hardware (i was very fortunate, 3 years without a problem, then i upgraded to an elite), but from own perspective, my gaming expereince on the 360 has managed to exceed my time with the SNES, arguably, the finest console ever made.

    If Nintendo REALLY wants to court the hardcore, it needs to get back to its development ethos of the mid 90's, and examine its relationships with other developers.

    I know this has been said many times, but the Nintendo Seal of Approval used to mean something. It needs to mean something again if it wants to be taken seriously by the true gaming culture.

    I just don't personally see this changing, when they've managed to make more money than God, shoveling shit.

    I'm waiting for the WII 2, with the full body controller, and hordes of drunk 40 year olds buying it, to impress their mates after a piss up, and the inevitable 'full body waggle'

    Christ, i still remember things like Zelda on the SNES, the first Mario Kart, SF2, Actraiser, and so many other GREAT games. I compare it to the WII, and shake my head

  • Santino #32 3 years ago

    "Surely everyone who wanted a Wii has one by now?"

    maybe so, but if that is the case how is it still selling faster than the ps2 at the same time?

  • lavalant #33 3 years ago

    Ignoring pleas for extra storage, HD support, better online service, overpriced virtual console software, awful NTSC to PAL timescales and treating Europe poorly, letting their console become saturated with the most god awful games ever seen and churning out gimmick after gimmick. And If it's true they played a part in preventing the release of Goldeneye remake on xbla even though Microsoft would allow a Wii virtual console version then I really hope this is the end of the touch generation!

    Get back to f**king work Nintendo, and start by bringing back Gameboy.

  • figgis #34 3 years ago

    Only 3 Billion pounds

  • makeamazing #35 3 years ago

    Nintendo are still making a massive profit, and so I wouldnt be overtly concerned, but thats not how businesses work. Nintendo were already concerned about dropping sales in Japan (though who still needs to buy one there). It always surprises me that businesses make massive profits they make less of a massive profit and they start getting very worried (perhaps they worry it will become a trend).

    I already thought Sony would do a price cut later on this year (at the Japanese games show), I am starting to think in the next 12 months Nintendo will too. MS dont have alot of room to move and so will be pushing Natal as a new console type thingy. It will be interesting...

  • JonFE #36 3 years ago

    The higher you are, the harder you'll fall...

  • mega7ech #37 3 years ago

    The Wii, it still makes me lol!

  • Anthony_UK #38 3 years ago

    Does anyone know how may games the PS3 & 360 sold during the same time to compare?

  • Xerx3s #39 3 years ago

    "The Wii, it still makes me lol!"

    Do you do that with all devices you see?

  • mega7ech #40 3 years ago

    "Do you do that with all devices you see?"

    No, just shit ones.

  • Praetorianer #41 3 years ago

    So you like shitty things and they make you lol? If you have a fast digestion, then you are a happy man, for sure.

  • KrissAkabusi #42 3 years ago

    BP and Shell also posted 60 percent drops in profit in the last few days. There really is a recession out there. Anyone reading into this as the death of the Wii is downright daft. The numbers are still hugely healthy.

  • electrolite #43 3 years ago

    "operating profit of JPY 490 billion"

    According to xe.com - 3,107,515,514.1812 GBP


    In a recession. Lord have mercy.

    Still, expect a Wii price cut this year and WiiHD next.

  • kangarootoo #44 3 years ago

    Nintendo are like the oil company of gaming.

  • mega7ech #45 3 years ago

    "So you like shitty things and they make you lol?"

    Never recall saying I like shit things?! If I think somethings shit (Wii) I will lol at it for being so...

    ...you also make me lol Praetorianer

  • IronCladChicken #46 3 years ago

    Theres only one thing that can save the Wii now - Release it in a range of new colours!

  • Nikanoru #47 3 years ago

    Anyone reading into this as the death of the Wii is downright daft.

    Well that's a perfect description of the butthurt Wii hate parade in general. :) They read into anything as the death of the Wii.

  • smelly #48 3 years ago

    "Honestly , anyone would think we were in a recession,"

    Japan isnt.. thats why both sony and nintendo are struggling.

  • MARKIV #49 3 years ago

    Black Wii - NOW!!

  • Alterego-X #50 3 years ago

    I LOVE how this article makes it sound as if Nintendo would be in big, big trouble for earning somehow less tons of money than last year, while the other two companies still fail at breaking even, to begin with, and that won't change in this generation.

    This is recession time. Nintendo earns less money, while Sony and Microsoft loses EVEN MORE money. Who is in bigger trouble?

  • wellzy4eva #51 3 years ago

    Nintendo give the wii an official price cut and the same for Wii Fit, and Nintendo are laughing again...next!

  • Genji #52 3 years ago

    "Well that's a perfect description of the butthurt Wii hate parade in general. :) They read into anything as the death of the Wii."

    :D

    Harsh, but fair. ;)

    And hey, I still love the Wii. It remains great for post-pub gaming sessions.

  • Genji #53 3 years ago

    "I know this has been said many times, but the Nintendo Seal of Approval used to mean something. It needs to mean something again if it wants to be taken seriously by the true gaming culture."

    Mate, it never meant anything. I think there was a grand total of one NES game that didn't get the seal. If you're saying that the vast majority of NES games released weren't utter shite, well... then I think you're the one who's dreaming.

  • penhalion #54 3 years ago

    I have a Wii and I don't know about you lot but, I haven't bought anything interesting on it for ages. I got the usual suspects i.e. Mario Galaxy, Mario Cart and Zelda and from then on it's been down hill all the way. I think, like the gamecube before it, it is getting to the point where the novelty of Wii is wearing off. For me the novelty wore off after justa few months.

    A price cut might help though that is assuming there are enough families out there that want's a Wii and don't already own one.

    Right now, with Uncharted 2, Ratchet and clank, Gears 3 etc. etc. I could care less if the Wii even existed.

  • electrolite #55 3 years ago

    "Well that's a perfect description of the butthurt Wii hate parade in general. :) They read into anything as the death of the Wii."

    Perfectly put. It's almost worth looking at the comments in Wii articles to see the reams of frustrated, impotent, bleary-eyed, foot-stamping "Ihatehatehateit" posts.