Overview Of Nintendo’s Latest Financial Report

Earlier today, Nintendo released their financial earnings report for the period of April – December 2009. The company reported net income (commonly known as the “bottom line”) was down from 212,524 million yen during the same period in 2008 to 192,601 million yen in 2009, and Reuters are reporting a 41% drop in profits compared to 2008.

Due to slower sales during April through September in 2009, and appreciation of the yen, net sales were down 23.1% from the April – December period in 2008 as well. Despite this, the company is well on its way to meeting hardware and software sales forecasts for the fiscal year ending in March 2010.

Global Apr – Dec 2009 hardware sales:

Nintendo DS – 23.35 million (forecast ending March 2010: 30 million)

Nintendo Wii – 17.05 million (forecast ending March 2010: 20 million)

Global life-to-date hardware sales:

Nintendo DS – 125.13 million

Nintendo Wii – 67.45 million

Global Apr – Dec 2009 software sales:

Nintendo DS – 121.38 million (forecast ending March 2010: 150 million)

Nintendo Wii – 156.64 million (forecast ending March 2010: 192 million)

Select game sales:

The Legend of Zelda: Spirit Tracks (DS) – 2.45 million

Pokémon Platinum (DS) – 3.1 million

Pokémon HeartGold / SoulSilver (DS) – 3.74 million (Japan only)

Tomodachi Collection (DS) – 2.74 million (Japan only)

Wii Sports Resort (Wii) – 13.58 million

Wii Fit Plus (Wii) – 10.16 million

New Super Mario Bros. Wii (Wii) – 10.55 million

The number of the company’s employees actually rose from 4,059 in 2008 to 4,394 in 2009. NCL’s net income forecast for the fiscal year ending March 2010 is 230,000 million yen.

Food for thought:

1. While Nintendo will certainly meet their hardware forecasts for this fiscal year, DS hardware sales fell from 25.62 million during the nine-month period in 2008 to 23.35 million in 2009, despite the Western DSi launch and the Japanese DSiLL launch.

2. Similarly, Wii hardware fell from 20.52 million during the nine-month period in ’08 to 17.05 million in ’09. With three huge franchises (Mario, Zelda and Metroid) and the Vitality Sensor all potentially releasing this year, will the overall effect on hardware and software be enough to beat 2008’s combo of Super Smash Bros. Brawl, Mario Kart and Wii Fit?