Nintendo profits tumble by 66%
Nintendo’s annual profit has fallen for the second year in a row, hit by a price cut on its DS handheld gaming console and the strong yen.
The Kyoto-based company behind the Super Mario franchise and the Wii console said its net profit for the fiscal year ending March 31 fell 66% to 77.6 billion yen (€647m) from 228.6 billion yen (€1.9bn) the year before.
Nintendo, which does not break down quarterly numbers, said annual sales slipped 29% to 1.014 trillion yen (€8.5bn).
The company expects conditions to improve gradually over the next year, with sales of its new 3D handheld console, the 3DS, offsetting an anticipated decline in Japanese consumer spending after last month’s earthquake and tsunami.
“Nintendo has not suffered any direct damage which will significantly affect our production. However, it can be predicted that there will be an indirect impact from individual consumption patterns,” the company said.
It forecasts sales to rise 8.4% to 1.1 trillion yen (€9.2bn) for the fiscal year to March 2012 and expects earnings to increase 41.7% to 110 billion yen (€918m).
