Nintendo Profits Fall 50%


Nintendo has seen its interim net profit decline by a little more than half, seeing profits of ¥69.4 billion (around €515 million) so far this year.


Declining sales of the runaway success that is the Nintendo Wii have been blamed for the drop in profits, but that whole business can’t be brought to Nintendo’s door. It’s important to remember that the face of the console market has changed a lot over the past few months, with Microsoft and Sony both offering significant price reductions, putting the Xbox 360 at the same price as the Wii. Similarly, the PlayStation 3 now sits at just €299, not as much more expensive than Nintendo’s offering as once it was, and with both angling for motion control, you can imagine things looking bleak for the little console that could.

The bigger news is that sales of the company’s also tremendously successful dual screened DS (and the DSi) have dropped by 15% since last year, though they still managed to shift 11 million devices. The DS is perhaps a more interesting case because of the lack of new competition (the PSPgo being both relatively recent and relatively less well liked).

The biggest reason we can see for the drop in DS hardware sales is that it’s starting to hit saturation. The fact is that pretty much everyone who has ever thought, “There’s a solid reason to pick up a new DS,” has probably already done so…

Still, the fact that Nintendo has managed to make so much profit is impressive, but nobody’s going to be taking a 50% drop in profits well at all. Of course, with the Wii set to drop in price by Christmas and the new, limited edition black Wii set to launch on November 9th, Nintendo can likely expect to see something of a bump around Christmas.


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