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Nintendo sales down, profits up

By Staff

Declining GameCube and Game Boy lines hurt Nintendo's sales, but foreign exchange gains and strong DS showing save company's bottom line.

TOKYO--Nintendo posted its financial results today, and it turns out the company has been making more money while selling fewer games.

Nintendo today reported its consolidated results for the nine-month period ended December 31, 2005. For the time frame, the company's bottom line improved considerably, as its net income increased to 92.2 billion yen ($792 million) over the 67.8 billion yen ($583 million) it reported for the same period a year before. Despite that improvement, Nintendo's net sales were down 1.7 percent from the preceding year to 412 billion yen ($3.54 billion), hurt by declining sales of GameCube and Game Boy Advance hardware and software lines.

GBA sales were particularly hard hit. Nintendo moved less than 7.5 million Game Boy Advance, SP, and Micro units for the time frame, down from 14.3 million for the same time frame a year before. Sales of GBA games were also hit, down to 51 million from the previous year's 73 million. Likewise, the GameCube saw its sales drop from 3.46 million units to 2.16 million units, while game sales for the system slid from 40 million units to 28 million units.

Helping to offset the decline of the company's older systems, Nintendo's DS sold 9.16 million units during the nine-month period. That's up from the 2.84 million sold the previous year, a less-than-meaningful comparison considering the machine launched near the end of that time frame. The DS also saw game sales of 35.9 million for the period, far outstripping the 5 million units it moved the year before.

While Nintendo also today unveiled the Nintendo DS Lite redesign, which will go on sale March 2, several days before the end of the company's fiscal year, it apparently had the unit in mind when it made its initial DS hardware projections, as they have not changed. The company still expects to sell 12 million DS systems for the fiscal year ending March 30, 2006.

As strong as the DS's numbers were, the key to Nintendo's bolstered net income was not its game sales. The company cited foreign exchange gains of 45.2 billion yen ($388 million) thanks to the increasing value of its foreign assets compared against the yen. While that puts Nintendo ahead of the game in its financial report, it should be noted that the company's operating income (calculated before foreign exchange gains, ancillary income and expenses, and taxes) was down 20 percent, from 103 billion yen ($885 million) to 83 billion yen ($713 million).

169 comments
mOnKiLaiON
mOnKiLaiON

x_X.. mai gaD D: io ke iva a sabeR que asi paso o.O.. necesito ver las noticias mas seguiDo :D!.. xD x)

boo_dat
boo_dat

awesome...I hope Nintendo doesn't continue to suck! Seriously, Nintendo use to own the gaming market...I wish those days were here again...sadly, they aren't...it's false hope to think that the Revolution will be any good...sounds to me like Nintendo has blown it one too many times...they need SOLID games if they want to claw back into the market...maybe Nintendo needs to fold, pack up, move on...I dunno, to me, they're dead...

Lord_Venom_II
Lord_Venom_II

Awsome! I just hope that Revoloution doesn't cost too much! lol

terrorsound
terrorsound

I prefer the graphics a GC produces, to me it's closer to next gen consoles then the ps2 or the xbox, all I have to do is look at the RE 'remake' graphics and that difference is put to rest for me. The thing that makes nintendo different is that they are innovators over the other companies, they do gamble but I'd rather take a chance on a new way of playing a game then play the same old interface\platform, yawn.. I am very glad that capcom released the 'remake' RE titles on the GC, they are multitudes higher in quality of gameplay, content and visuals and I think they did a better job compared to the RE4 port on sony's ps2, the RE4 graphics on the ps2 are'nt as sharp, there's something missing there. RE is what made consoles popular to me and if RE is released with quality in mind on the game cube, that's where my dollars will go.. So far the majority of GC\nintendo releases have been innovative and very very successful compared to the RE lemons and new genre games released on other systems. Keep at it nintendo, quality over quantity is great and online is still a catch phrase fad to me, I'd rather have quality games over medeocre online trendy games any day!!!!!! Port scanning sucks!!! almost forgot, thanks for the rootkit sony!!!!!!!!!

barnold81
barnold81

Nintendo participates in an industry that is largely evaluated by sales rather than profits, so I think this is definitely not good news for Nintendo. I also feel like third-party support is moving away from Nintendo due to their repeated technological blunders (Virtual Boy, N64 cartridges and GCN mini-DVD's). I've been worried about the company for years now. The DS is a resounding success though (thank god). Even if the Revolution is successful, they will need to convince third-parties that it is the platform of choice, even though many people (not all) will be purchasing the PS3 by default. I'm looking to buy a Revolution, and perhaps only a Revolution, but there is much uncertainty about the future of this company. I'm saying my prayers for Nintendo. . . They are perhaps the ONLY console company that innovates. Show your support to Nintendo and the evolution of video games!

ofcourseyes
ofcourseyes

I don't get it. Sales down, profits up? Ok whatever, I just hope the Revolution is better than the dissapointing Gamecube.

maxwellego
maxwellego

"GAMEPLAY" is an original trademark of the big N. The Super Nes was my first system, then there was the GameBoy. So, are the Cube sales down? Well, I love my GameCube and Nintendo will be my favourite company forever. Now give me the REVO... pleaseeeeeeeeee!

spetznazkye
spetznazkye

this sucks i hope they go bankrupt and microsoft or sony buy em

FANTALOVER
FANTALOVER

that's the way...now bust everyone up with the Revolution ...

TKandPBC
TKandPBC

Same thing with Revolution. It's going to sell the least. (HAHAHA 360 is gonna sell the most because MS is set for any situation with the money they have). BUT Revolution is the only console being sold for at a profit (compared to 360 and PS3). Everytime a 360 is sold, MS loses $120, and everytime a PS3 is sold, Sony will lose over $150. Nintendo will actually gain money for the Revolution.

Night_Frost
Night_Frost

In my opinion, the first three years the Gamecube was out were the best years cause they had all sorts of awesome games, LoZ: Windwaker, Eternal Darkness, MGS: The Twin Snakes and the RE Remake, but after 2004 ended, things started to fall, still, I have high hopes for the Big N and pray that the Revolution lives up to its name...wait, Nintendo never disappoints...right?

trabracha
trabracha

Yeah, who are all you coneheads who think nintendo is going down the drain? That's about as likely as me buying a 360. My friend got one of those and wow were we peeved? What a waste of money. Great graphics, can't complain there, but the games? What are they waiting for? Give the gamers what they really want. GAMES. That's what Nintendo does. We get games. Lots of games. So if some of them stink, we have options, variety. Something for everyone. How many games does the 360 support right now? I'll let you all count. Go Nintendo and Sony. Stay Strong.

2w-sephiroth
2w-sephiroth

If Nintendo goes bankruped, there is no more point of playing console games, the only reason why Sony is making good is to make compitence. When the PS1 came out it was so crapy! It had to really make an improvement after N64 came out. PS dint even have Analoge, OR rumble! Hmm I will Stick with PC gaming if that happens, i love blizzard, they have the same love as nintendo.

ewjim
ewjim

It's not a big surprise for me, because they just keep on coming "new" systems.

ninfan4life
ninfan4life

imavus ur a f in tard does it really matter if u play a handheld at home do u see nintendogs on cube wat bout mario and luigi partners in time or even mariokart ds ONLINE omfg i can't wait for SSB for ds its going to be...... yea u noe ONLINE

oldvidplayer
oldvidplayer

I'm surprised GBA systems and games sales went down if i read the article correct.. I thought the sales were strong. I bought a nintendo DS few days ago at K-mart because k-mart is going out of business so i got a DS at 25% off. i was lucky there was 2 DS left at k-mart, i was very surprised k-mart has the out of business sale for almost 2 month psp, ps2 and x-box was already gone just about everything was picked clean, so i was very lucky to get a DS even games was 25% off so i got last copy of Mario Kart, and I got Dragon ball Z super sonic warrior.

remmbermytitans
remmbermytitans

revolution will blow those numbers away.... though i think its funny that the DS priced at $120 is selling more than the gamecube priced at $99 or lower..... weird.... but.... go nintendo!!

IhateMario
IhateMario

The revolution will change all those numbers, they will look like crap! I can't wait any longer for the rev...

Volgin_1
Volgin_1

Yea, I doubt nintendo will ever go bankrupt. They have built such a strong international fanbase. I'm sure if Nintendo puts out some games that target all age groups, it will do just fine. A lot of people seem to have something against Nintendo because they produce fun games rather then mediocre violent ones.

mariokart64fan
mariokart64fan

and you obviously cant connect to internet outside so why else would you same for psp which is the worst handheld to date (great features but bad games to show them off) dont get me wrong i like every console sony made but psp changed the whole thing i mean if nintendo can make a profit while selling less its amazing i bet if sony did this theyd fail same for microsoft nintendos one company thatll never go bankrupt

chrisdojo
chrisdojo

ds should do even better once more rpg's and rts games are released.

wikkedclown17
wikkedclown17

revolution is gonna BLOW up the competition. period.

ultvgmer
ultvgmer

Thank you Doshey, finally some1 sees it as i do. I love Nintendo, but come on hold ur f***** balls intack ppls!

doshey
doshey

you guys need to shutup with the F***ing Rev. you guy need to wait to see what will happen not think that it will help them or screw them but just what till the system is out! not that hard

Cuchofleta
Cuchofleta

I'm Nintendoes since it all started, and I'm Nintendon't suck forever.

Cuchofleta
Cuchofleta

I'm Nintendoes since it all started, and I'm Nintendon't suck forever.

seanmcq
seanmcq

Well spoken. I love video games, and I will happily play the best and enjoy the best from any console or platform. For whatever reason, despite the masses I still feel that the mighty N were the first and are still the best, whatever that means. But I loved ico, god of war, deus ex, halo and even intend to play a whole load more.

goatblower
goatblower

This is why nintendo is still in the console war. They are in 3rd place but they are making mega profit, which if I am not mistaken is more that Microsoft's Game Division.

gtimandan
gtimandan

Every system that's out now, or has been released in the past, was a great piece of work - it was up to the developers to create interesting software for the machine that was the tricky part [Philips CD-i, Atari Jaguar, etc]. The current crop of machines are top-notch offerings with great support and should be immensely appreciated [by you!] and the mfrs respected for their immense and expensive efforts. The next batch of machines will continue this progression, being better and faster than the machines they replace, however just about everyone is getting tired of stuff such as "Star Wars: Episode 162, the Geezer Race For The Tapioca Pudding Wars", or "GTA: Geriatric City" or "Need For Speed: Wheelchair Races" [no offense implied to anyone for any reason]. The gaming environment has become WAAAAY too stale & repetitive. So what if the graphics are prettier but it's the same game over again & again? These folks need to cowboy-up and produce some more original content [thanks, Nintendo and even Sony for trying - keep it up!] than all of these rehashes that only get prettier but the song stays the same. I'd *hate* to see another video game crash like from 23 years ago [shudder].

pac-master
pac-master

i'm getting tired of hearing stuff like "x-box is the best" and "halo2 is the only good game out right now". no. people who say stuff like that should just go work for the lazy, rich slob we call bill gates. he didn't invent windows or the x-box. he stole the idea of windows from someone else. and he paid someone else to invent x-box. besides the x-box 360 was a huge flop. sure it sold, but it sucked, sucked, SUCKED. i went to the local EB games and asked about it and he told me that in customer service everyday he gets people whose x-box 360s caght on fire and how the laser gouged out the discs. i'm waiting for revolution and PS3. LONG LIVE SONY AND NINTENDO!!!

LanceK17
LanceK17

Hurry up Revolution!!!!!

cyprus646
cyprus646

Rev will change every thing wait and see.

shrum91
shrum91

the DS is doing better in america as well

shadow_link_87
shadow_link_87

Personally I think Nintendo is doing great (w/ the DS that is..) and judging by the recent shortage of supplies in Japan it ain't going to die anytime soon. According to retailers in japan the DS is literally flying off the shelf. Some people will even pay 30k Yen (approx 300 us$) for a USED DS... So yea.. Not to say psp is doing bad but ds is just doing better (at least in japan)

gtimandan
gtimandan

Like I said back on pg 6 of this thread - this article does NOT indicate an anomaly [sorry - big word...ummm] this is not sign of a problem within Nintendo that the GameCube sales are sliding. Go back to pg 6 and read my diatribe for more insight. If you'll investigate further, you'll see that Xbox and likely PS2 sales are off quite a bit over the previous year as well, due only to the fact that new hardware is soon replacing those consoles and therefore not as many folks are adopting what is soon to be "old" technology - they're waiting instead to make their investments on the new technology. Nintendo, Sony & Microsoft will be around for hopefully decades to come, making consoles all the while. And this endless bantering about "Mine's better!" or "*THIS* company rules and *YOUR* company blows!" will also continue, ad nauseum it would seem, due _only_ to the raging hormones of youth. I've been gaming for over 25 years, and what's presented in this article is NOT Earth shattering, believe me. Let's just all enjoy the games, k? That's what it's all about :)

TTS_Fusion
TTS_Fusion

True, but if I wanted to play Gunstar Heros, and I didn't have a Saturn, I'd be out of luck if I was inside my house. See, even though there is many a thing I could do with my 4000 channels, for example, I would still only be entertianed by the Sci-Fi channel, even though I have many other channels that I could watch. Other people can be entertained by the simpler things in gaming, and handhelds provide.

Imavnas
Imavnas

See the thing is Mit_man, that most people dont elaborate. They dont say they play their games this much time and that much time. But its too hard for someone like me to ignore the countless of handheld owners ive known who sit at home and play their handhelds because their not willing to try out Console games. They account for such a LARGE amount of handheld owners that to single them out would get more than half the current DS owners. If Nintendo's Revolution fails for example, (this is an IF people, not saying it will or will not happen), then The DS would be the only system in which you could play Nintendo's franchises (I dont believe the BS they said about pulling out of gaming if their console fails, i think theyd go all out handheld). In that case, I can understand it. But with so many versions of their games out, you start to wonder how many times people will play Mario Kart to the point where their using their handheld, (an item that although CAN be used at home, should generally be used on the go) at home all the time. Mind you the reason this isnt the case with PSP is because its primarily selling point at the moment is "on the go" movies. But it happens with all handhelds because frankly, non casual gamers dont put much effort into anything BUT games. Even if their mindlessly playing games that are so ridiculously similar to games theyve played before. I have to say im sorry for including the minority (like yourself) of Handheld owners which dont do the aformentioned. But thats how it is. Now regarding the real life, and job, and all that; i was trying to encompass handheld owners as a whole and it was a mistake to do that as their is a minority of handheld owners, like yourself, that dont take their handheld games and play them at home constantly. People who have responsibilities but yet also want to enjoy the games. Still, the fact that this minority exists is still troubling. In general, at home, you should have plenty to do that you dont have to continue playing a game meant for on the go.

markbridges
markbridges

I'm glad to see that profits are up but on the otherhand, I'm a little disappointed to see the overall sales go down. C'mon people run to the stores and start ripping NIntendo merchandise off the shelves! Ya'll know its great stuff! LOL. Long Live Good ol' Ninty! Support games not bits bytes and millafillabillabytes. lol. Games aren't good if ONLY the graphics are good. That'd make it a movie. C;mon Revolution pull through for us all! -iMacTigerSweet

wackoss
wackoss

Isn't the story saying that Nintendo sales were down and that their profit or net income would've been lower than previous year if it wasn't for foreign exchange rates? So why is everyone saying long live Nintendo!?!? It may be because of the transition to the newer stuff like the Revolution and DS but being 20% down doesn't sound good.

Munkyman587
Munkyman587

I am sorry to say it, but nintendo has not caught my interest for a long time. They have their fan base to survive on, even if what the make is garbage (to each his own...) and no matter what, they will have fairly good sales unless they make a HUGE mistake, and I am talking AMAZINGLY HUGE... even then, they would still somewhat well. Each console seems to get progressivly worse than its predicessor... I own the NES, a very amazing system... SNES was awesome as well. Then N64 was alright, it had its games.. then Gamecube- the only game I might play again is the free zelda pack it came with or RE4, which is now on the PS2 as well. What will the new one bring? From the "controller," (yes, it is a new idea.. woohoo, congratz, they are payed that much to think u know...) I know it will probably not be my sort of system, but I can't make that judgement yet based on the available info (or lack of). GG nintendo = /

XplorWeb
XplorWeb

If only I had enough money to buy DS and revolution =P Glad to hear Nintendo's sales are doing well =)

gdsmck954
gdsmck954

Nintendo seems to be doing better than ever. Despite the fact everyone thinks they are going bankrupt. I'm curious to see how there sales increase after the release of the Revolution.

TTS_Fusion
TTS_Fusion

"Will"? Sorry, wasnt the DS the first Nintendo system to sell out in Japan? Yea, and you know how they like Nintendo in the far East.

Mit_Man
Mit_Man

To both Mit_Man and death919: It looks like it was "hurtful" enough of a post to be deleted by an admin. I dont get what so hurtful about the truth. The Gameboy was made so that people who sit in traffic, take the subway, take a bus, or otherwise spend hours away from home without ANYTHING to do, could enjoy themselves during that time. Its one of the reasons behind the original WALKMANs release. In fact, almost every electronic item that is considered a handheld has the phrase "on the go" attached to it. Point is, the Ds was made to be played on the go. Of course, Nintendo understands that there are plenty of people who like to waste time at home playing their handhelds instead of their console like they should be (or doing something productive like say exercise, which im sure would be a far better way for people, americans especially, to use their time). So they CONTINUE to make redesigned versions of their handhelds and remakes of their games with some changes to them. And the consumers keep on gobbling them up. Mit_Man, ive seen plenty of "adults" that just stay at home and play video games. I in no way implied that u were a "young gaming nerd" like you so said. You could very well be an Imperialistic society's slaving adult from what Ive gathered so far with routine days the likes of get home, wash up, play some games, eat, play some games, watch some news, play some games, go to bed, wake up and work again. Wow, NO ONE said they sit at home and only play their handhelds or play their handhelds most of the time when they're home. 90% of my time on my DS is spent on the go, but sometimes I will play it at home because it's a game, and I don't consider it that much less than a console game. Besides, I don't have any console games to play right now anyways until the new Zelda and Kingdom Hearts II. Then maybe I'll be concerned about stopping my DS play as soon I'm home or whatnot. But no one's said they spend that much time, enough time to waste their life away and replace doing anything productive, playing a handheld game at home.The young gaming nerd came from you stating that I constantly play video games at home, and stating how you know what a real life is and have a job and drive and whatnot.

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