Nintendo profits decline 18% over 2010
Company's performance negatively impacted by Wii price drop and fewer software releases
Nintendo's profits dropped by 18 per cent year-on-year for fiscal 2010, according to the company's financials released today.
The company's net income for the year ending March 31, 2010 was JPY 228.6 billion (£2.4 billion / £1.6 billion) - a decline of 18 per cent on last year.
Meanwhile, net sales declined by 22 per cent to JPY 1,434 billion ($15.3 billion / £10.17 billion).
Nintendo attributed the drop to the negative impact felt by a price reduction to Wii hardware, fewer strong Wii software releases over the first half of the year and appreciation of the yen.
Overseas sales accounted for 84.1 per cent of overall sales and the total number of employees increased over fiscal 2010 from 4130 to 4425.
Nintendo's forecast for fiscal 2011 was a further 2.4 per cent drop in net sales and a 12.5 per cent decline in profit.
The new Nintendo 3DS hardware - which it confirmed will be compatible with DS and DSi software - will be released during the year, as will Pokemon Black / White.
"Through the expansion of 'Nintendo Zone', a service utilising the wireless function of Nintendo DS, Nintendo will continue to provide unique content such as free downloadable Nintendo DS software and Nintendo Wi-Fi connection, which enables players to enjoy games together with their distant friends," said Nintendo.
"In addition, Nintendo's strategy is to achieve the ultimate worldwide objective of 'must-have for everyone' rather than 'must-have for every family'. Nintendo will enrich consumers' daily lives with features such as information services at cultural facilities, commercial establishments and more."