Nintendo's Profit Drops 66 Percent

By

Gamers may go nuts for flashy platforms and high-res graphics but that hasn’t stopped Nintendo’s annual profit from plummeting. According to the Kyoto-based company’s latest financial statement, Nintendo’s net profit for the fiscal year ended March 31 dropped 66 percent to 77.6 billion yen ($947 million) from 228.6 billion yen the year before.

What’s worse, annual sales dropped 29 percent to 1.014 trillion yen ($12.4 billion). And that’s prompting a full-fledged shootout among today’s game console players.

Without a doubt, Nintendo is banking on its newest gaming platform, the 3DS, to boost demand for its products. Released in Japan in February for 25,000 yen ($302), the portable gaming system features a 3D screen that works without glasses and is capable of graphics markedly better than the original Nintendo DS handheld. It also has two cameras on the lid so that users can take 3D pictures and share them with friends. The 3DS is now available in the United States for $250.

For this reason, Nintendo is predicting sales to increase 8.4 percent to 1.1 trillion yen ($13.4 billion) for the fiscal year through March 2012 and anticipates earnings to rise 41.7 percent to 110 billion yen ($1.34 billion).

So how is Nintendo faring next to Microsoft’s Xbox? Well, Nintendo sold 15 million Wii consoles last fiscal year – a 27 percent dip, and anticipates selling just 13 million in the current fiscal year. In the meantime, sales of the company’s popular DS handheld device also plummeted – a whopping 35 percent to 18 million units over the last fiscal year.

Compare those figures to Microsoft’s Xbox gaming system – now present in 50 million homes worldwide. What’s more, Microsoft has shipped more than 10 million of its Kinect units, which a recent Fortune article deems “an astonishing figure for a product on the market since only November.”








Edited by Jennifer Russell
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Can Science Outsmart Deepfake Deceivers? Klick Labs Proposes an Emerging Solution

By: Alex Passett    3/25/2024

Researchers at Klick Labs were able to identify audio deepfakes from authentic audio recordings via new vocal biomarker technology (alongside AI model…

Read More

Top 5 Best Ways to Integrate Technology for Successful Project-Based Learning

By: Contributing Writer    3/19/2024

Project-based learning, also popularly known as the PBL curriculum, emphasizes using and integrating technology with classroom teaching. This approach…

Read More

How to Protect Your Website From LDAP Injection Attacks

By: Contributing Writer    3/12/2024

Prevent LDAP injection attacks with regular testing, limiting access privileges, sanitizing user input, and applying the proper encoding functions.

Read More

Azure Cost Optimization: 5 Things You Can Do to Save on Azure

By: Contributing Writer    3/7/2024

Azure cost optimization is the process of managing and reducing the overall cost of using Azure. It involves understanding the resources you're using,…

Read More

Massive Meta Apps and Services Outage Impacts Users Worldwide

By: Alex Passett    3/5/2024

Meta's suite of apps and services are experiencing major global outages on Super Tuesday 2024.

Read More