Nintendo posts $24.7M six-month loss, Wii sales near 76 million

Slowing console sales, strong yen send game giant's bottom line south; DS sales approach 136 million.

Today, Nintendo reported its earnings for the six months ending September 30, and the results would not make corporate mascot Mario jump for joy. For the April-September period, the Kyoto, Japan-based company reported a rare loss of ¥2.01 billion ($24.7 million) versus a profit of ¥69.5 billion ($854.6 million) during the same period the year prior.

Nobody at Nintendo HQ was jumping for joy over today's financial numbers, except maybe Wario.

Nintendo's six-month revenue was also down year-over-year, falling 33.7 percent from ¥363.2 billion ($4.5 billion) from ¥548.1 billion ($6.7 billion). Today's report came a month after Nintendo revised its annual earnings estimate downward by 21.4 percent.

One factor for the decline was the continuing strength of the yen against the dollar. Another was slowing hardware sales. For the six months ending September 30, the company only sold 4.97 million Wiis worldwide, down from 5.75 million during the same period the year prior. To date, some 75.9 million units of the console have been sold, with an installed base of 10.8 million in Japan, 35.9 million in the Americas, and 29.2 million in other territories. Wii software sales to date total 610 million units.

The DS's sales decline was more precipitous. April-September sales of all versions of the handheld went from 11.7 million units in 2009 to 6.7 million units in 2010. As of September 30, 135.6 million units of the handheld have been sold, including 31.6 million in Japan, 49.3 million in the US, and 54.8 million in other territories. Life-to-date DS software sales total 773.3 million units.

Looking ahead, Nintendo predicts it will sell 4 million 3DSs the first quarter of next year, along with 15 million software units for the handheld. The portable, which does not require 3D glasses, goes on sale February 26 in Japan and sometime in March in North America and Europe. It will cost ¥25,000 ($300) in Japan, with pricing in other territories not yet announced.

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384 comments
Cillerboy
Cillerboy

nintendo must have seen this coming theyre not stupid. cant wait to see what they come up with in the next few years

kavadias1981
kavadias1981

When you develop something that becomes a trend, you have to be prepared for the inevitable loss of interest in said trend. Time to buck up your act and get back into gaming and quit faffing about with the fikle non-gamer. They wont be there to support you forever, Nintendo.

KaizerJinn
KaizerJinn

this is ironic...look forward to seeing what Nintendo have up their sleeves...

edubb85
edubb85

Casual gaming noobs will only take you so far. The wii needs to come out with better games not just 1 every 4 or 5 months.

King_Jeremy_77
King_Jeremy_77

Or most everyone already has one. "aserbianguy - the wii is failing because somehow people are just now realizing that the wii has no substance. the hardware is pretty awful, the games suck, seriously there has been more ports to the wii than actual wii games....while microsoft,sony are experiencing great numbers in game and entertainment sales"

Darth_Tyrranus
Darth_Tyrranus

@Nuk1euz Your post is once again inherently meaningless due to the countless number of bad assumptions and logical fallacies throughout its entirety. Come back to me when you are actually ready to have a logical and rational discussion.

MrSpaghetti
MrSpaghetti

Although I am more of a Nintendo gamer over Sony and Microsoft I've got to agree the Wii's softwre is seeming a little dated compared to over console. You've got to remember though that the primary audience for the Wii is younger children. Most young children arn't going to care about graphics over marketing or gameplay. If they see a cool advertisement or play a good game over at a friends house their going to go for the fun game over the game with the looks. Yes, I know their is hardcore Nintendo fans who have got Wii's who arn't younger children. I guess I could include myself in that group but I can guarantee you there are more casual gamers that own Wii's than hardcore gamers. The drop in sales could just mean the Wii has lost its marketing gimmick. Now that every major home console on the market has motion controls casual gamers may just go for any console.

neovalkyr
neovalkyr

The 3ds actually uses special lcd screens that are able to reflect 1 image solely to the left eye and 1 to the right eye, by tweaking viewing angels. they are both in full color.

Nuk1euz
Nuk1euz

@Darth_Tyrranus Thats why they make a percentage of ALL software sales. I dont need to prove it it ACTUALLY makes 50 dollars. Sony was ambitious enough to offer PS3 at its price point throughout its lifetime because even though they made losses per console sold back in the day, they were making enough money in other departments to make up for the losses, as well as software sales ect ect. Nintendo went the safe and cheaper route, and they did the same on the DS, the DSi. I mean, seriously 2 cameras that are not even 2 megapixels? I bought a camera 13 years ago that was 3 megapixels. Its not even possible for me to GIVE the camera away because nobody wants a 3 megapixel camera..........Yet the DSi has 2 of them. You see where im getting at? Plus add in the fact that glasses-less 3D screens has been created MORE than 5 years ago by Panasonic. Would you like to know how the 3DS creates a 3D image? Its 2 images overlapping each other in a way that it would trick the eye into seeing images in 3D, one image is one color, the other image is another color. ITS AN OPTICAL ILLUSION. In summary, 3DS total value in technology and materials will be no more than 50 dollars and you'll find out when 'whatever-that-site-is-called' will post up the numbers

Darth_Tyrranus
Darth_Tyrranus

@Nuk1euz Allow me to sum up your post in a concise line or two: "SPECULATIONS, BASELESS ASSERTIONS, BAD ASSUMPTIONS, PERSONAL OPINIONS, MEANINGLESS ANECDOTES, AND UNPROVEN PRESUPPOSITIONS." Your post has absolutely nothing of real value in it. I want proof of your assertions, and that is all. Your opinions don't mean anything to me. Can you ACTUALLY prove that the 3DS only costs $50 to make? And even IF it only costs $50 to manufacture each 3DS, have you considered the fact that MAYBE not just the manufacturing cost goes into the 3DS's price? What about marketing, R&D, overhead, patent royalties, etc.? Did you really put all of that into your $50 price point? I didn't think so.

Slagar
Slagar

As an owner of a Wii since launch, I'd have to say much of it's appeal was just marketing. Had it not been for the motion controls, aside from the Nintendo diehards, it would've struggled and died in the market.

godluigi100
godluigi100

[This message was deleted at the request of the original poster]

GameBeaten
GameBeaten

Well, I would think when more people buy Wii's and DS's that they would sell less eventually.

super600
super600

aserbianguy I doubt the drop in sales have anything to do with the Wii's internal hardware or the shovelware that most of the hardcore wii players like me ditch.

Nuk1euz
Nuk1euz

@Darth_Tyrranus Nintendo is a rich company for a reason, and its not because they make modest profits. Big companies dont bother with business ventures unless they know they can make at least 5x the cost of the item's production. The cheapest products are usually straight from the product-makers, like Sony for example had the console with more bang for their buck, since launch day! And even today it has the most value out of all consoles. Companies like Nintendo, Sony, Microsoft buy MILLIONS of each component to make their consoles and handhelds, and despite needing to pay 3rd party companies for such parts, they get INSANE discounts just because they buy in mass quantity. Think Costco, but on steroids LOL 3DS for example will cost them around 50 dollars to make, the most expensive component on it will be the screens, but almost everything else will be current technology that costs so low by now, that it makes you laugh. And to buy that in bulk will cost little-to-nothing. It costed at least 3x more in 2007 than it does now i can bet you that much.

aserbianguy
aserbianguy

the wii is failing because somehow people are just now realizing that the wii has no substance. the hardware is pretty awful, the games suck, seriously there has been more ports to the wii than actual wii games....while microsoft,sony are experiencing great numbers in game and entertainment sales

barnold81
barnold81

Also, how often do you hear companies talking about earnings performance, and have to talk about foreign currency as a primary driver? This distorts the actual performance of the company. I wonder if Nintendo is intentionally allowing the FX risk as a diversion so that they can appear triumphant when it is favorable, and blame it when it is unfavorable.

barnold81
barnold81

First of all, I own a Wii. Let me just get that out of the way. If Nintendo did foreign currency hedging (or did it better, if they are doing it), they wouldn't be so exposed to the strengthening yen. I would like for people to talk about software sales and how they compare across the multiple platforms. I'm sure the DS software sales are doing fine. However, I'm more than a bit skeptical about how well they are doing on the Wii, especially compared to Xbox 360 and Playstation 3. I suspect the results would not be surprising no matter which market is being examined. I'd also like to hear Reggie talk about this. He is so overconfident on stage.

Nuk1euz
Nuk1euz

Ahhhhhhh, that explains why they are bringing out the colored Wiis after Japan had them since launch day. Nice try Nintendo, but im not buying whats soon to be the most expensive glossy colored paperweight in the world. No offense, i love Nintendo, but lets be a bit more 21st century?

super600
super600

This is to all the blind wii/ds haters who don't notice why nintendo's profits are dropping 1. The oversaturation of the market 2. The 3DS 3. The strong yen Before you haters talk at least think of why nintendo profits are dropping instead of resorting to making fun of the Wii. I hope this shuts up all the haters.

lithus
lithus

@mario-nin-freak: no posting smiley's doesn't make you wrong, but posting one after each sentence kills your ability to be taken seriously. That's like going into congress and saying "Ahaa!" everytime you tried to make a point. You'd sound stupid and be escorted out of the proceedings. FYI, if you're trying to come off as a moron...it's working.

chimpmeister
chimpmeister

It was inevitable that the Wii and DS would tank, the hardware is incredibly weak and the games are 99% shovelware. Glad to see that people are finally catching on to the junk Nintendo puts out, just a matter of time before this company folds (the sooner the better). They've rehashed so many franchises like Mario, Zelda, Donkey Kong, etc that its about time they got their walking papers. RIP Nintendo, you lost your course a LONG time ago!

digi-demon
digi-demon

Nintendo you have neglected your core user base and desecrated your quality seal with this last generation of consoles. No, dont cry lemmings as I own all formats including Wii and DS. IMO Microsoft Sony Nintendo need a good horse whipping (for neglecting their core users needs!). Back to the point...the shovelware on Wii and DS has cost them dearly, well, that along with all the scummy pirate filth that constantly poisons this industry.

Flint247
Flint247

Almost everyone in the world has a Wii, no surprise here.

RockySquirrel
RockySquirrel

[This message was deleted at the request of the original poster]

Gamingclone
Gamingclone

This is to be expected, come next year Nintendo will be seeing green again.

Ex-DarkBlade
Ex-DarkBlade

What is this? Why can't we all get along?

Rovelius
Rovelius

@mario-nin-freak Yeah I'm aware of this, I also own a Wii @RitsukoEX I said : and your point is? What's the point of telling ME that Live has casual games (which I'm already aware of, duh)? mario-nin-freak is the only one here who would benefit from this information.

SicklySunStorm
SicklySunStorm

Bet they didn't see that coming a couple of years back....

RitsukoEX
RitsukoEX

@Rovelius are slow? or what? you didn't catch it?

jonny500
jonny500

Hmmm, I'm not sure a loss like this can be explained away by slowing hardware sales of an already ludicrously popular console (You can't keep selling them when every human being on Earth has one!) I think this could possibly be because of some spending on next gen tech, besides the 3DS obviously. Just a hunch, but we're past the usual lifespan of console generations at this point.

dogpigfish
dogpigfish

They easily have the best games this year. I doubt their next quarter will be this sour.

mario-nin-freak
mario-nin-freak

@lithus um, okay. Like posting smileys makes me wrong, but oh well people are like that.

mario-nin-freak
mario-nin-freak

@Rovelius yeah the store, download games are not very big, and there's also more hardcore on wii than you think ;)

Incubus420
Incubus420

So Microsoft and Sony posting profits and Nintendo falling back. They need to really ramp up development of the new Zelda ASAP. Also if the 3D DS isn't a hot seller they will fall big time.

lithus
lithus

@mario-nin-freak: word of advice...lay off the smiley faces and people might actually take you seriously.

demonic_85
demonic_85

@gudni I agree that there are a few pretty good games for the Wii that are intended for a mature audience (Madworld and No More Heroes for example) but most people dont buy them. Since games like that have poor sales, the developers are not inclined to continue making games like that for the Wii.

gudni
gudni

@Reilly86 I always hear the same lines over and over... Where are the Wii games for the hardcore? And as somebody who actually reads the Wii section i always have a line-up of games to answer these questions, yet the majority seems to have the same attitude as you and disregard when somebody tells them about those games. Wii has hardcore games...The problem is that hardcore gamers often just look a blind eye at them so they can keep on b*tchin. Anyway if anybody really cares then here are some great picks coming christmas(i should not have to tell you about the great games already out this year, this is just christmas). Goldeneye , Conduit 2 , COD: Black op , Donkey kong country, Epic Mickey, Sonic colors , Tom Clancys: HAWX 2 , The Sims 3 , Need for speed: Hot persuit....I have a feeling im forgetting something big...anyway..........game on.

BLuFAlc0n
BLuFAlc0n

....well looks like we have to wait for those killer games on the Wii to come out, before it gains sales again... as for the DS, only 5 Million left to go :)

grungeman91
grungeman91

They had a good run and it was bound to happen at some point, I hate to see a company lose profit but nothing has come out for the Wii in quite awhile.

Seiki_sands
Seiki_sands

[This message was deleted at the request of the original poster]

grasshopper6
grasshopper6

well what they expect I think everyone by now has wii in their living room or nursing homes playroom

Reilly86
Reilly86

I know what Nintendo need to do now... get another million un-fun party games released that over shadow the few brilliant Wii games. I mean what is Nintendo going to release the Christmas for the Wii that will make the hardcore gamers salivate? I saw an advert for the Wii the other day and they are STILL adverting Wii Sports after 4 years! Does Microsoft still advertise Perfect Dark Zero or does Sony still advertise Devil May Cry 4, No because almost every week there is a bigger and better game released. The last great Wii game was Super Mario Galaxy 2 which was 4 months ago and before that...I think was Super Smash Bros Brawl about 2 years ago. Everyone has got the Wii now and its time to start releasing games that made Nintendo great like Ocarina of Time and for the love of god release a Star Fox or F-zero game!

amaan4ever
amaan4ever

135 million DS?? Damn thats alot of DSs

rcktz
rcktz

I don't get it, how come big N making over a hundred bucks per every Wii unit sold in profits, while making people buy multiple versions of NDS and having a cohort of evergreen titles can at the same end up having a loss, maybe by loss they mean they get their hopes up too high? That yen thing must be darn strong to convince me that the report is not flawed.

Darth_Tyrranus
Darth_Tyrranus

dRuGGeRnaUt, I really think you are belittling a technology which you do not fully understand. The parallax barrier screen is much more than just a coating, otherwise you wouldn't be able to turn off the 3D at will, would you? I think you need to do some more research on this topic. Furthermore, Sharp owns the patent on this technology, meaning that Nintendo will have to pay Sharp royalties for use of the parallax screen in their handheld. This cost is of course passed onto the consumer. As far as the price is concerned, we have no idea how much the 3DS costs to manufacture. Obviously Nintendo would prefer to have a small profit margin for every 3DS sold as opposed to losing money for every 3DS sold. Making a profit from your product isn't necessarily greed. Sometimes it is merely financial responsibility, imagine that!. Since we have no idea about how much profit Nintendo will make per 3DS, to say they are greedy is a baseless assumption.

nini200
nini200

now would be the time to buy stock in Nintendo.

SnuffDaddyNZ
SnuffDaddyNZ

The good new for nintendo - I STILL haven't bought a Wii! The R&D that went into the 3DS will probably be attributed to this fall, and I KNOW that I'm buying one of those on day one.