Nintendo Profits Down

News-agency Reuters is reporting a 43% net profit loss and gives us the reasons for it...

Nintendo's net profit fell 43 percent in the latest quarter and this made Nintendo to decide to cut its forecast for the full year by 20%. Nintendo is now targeting a 6-million target for Nintendo DS units, accompanied by a 10-million NDS software target before the end of March 2005. The counter is currently at 2.84 million Nintendo DS units and 5.01 million games sold.

"DS software is not selling because users are playing the pre-installed PictoChat game. Even if they buy a game, multiple players can use it to play against each other, eliminating the need for each to buy their own game," said Nintendo Senior Managing Director Yoshihiro Mori. "We also included a demo game with the DS machine in the United States, and pushed back some game releases into the next business year." Reuters also mentions the backwards compatibility of GBA games weakening demand for new games.

However, not all is as bad as it seems. Compared to last years' result of 107 billion yen, the forecasts for the current year are set at 110 billion yen (with net profit being 70 billion).

src: Reuters

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Comments

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  Damn it...

  ryuuslayer, 30-11--0001 at 00:00
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  yea what he said....Damn it...

  NiNe9cEnTs, 30-11--0001 at 00:00