Weaker Wii sales: Nintendo's profit drops for first time in 6 years

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Nintendo in Japan released its annual fiscal report [ENG, PDF] today, and even though pretty much every financial key figure took a nose dive, things still look pretty good on the whole. The company racked up $15.2 billion in revenue last financial year (which ended March 31, 2010), down 22% from last year. Operating profit dropped 36% to $3.8 billion, while net profit – for the first time in six years – dropped to $2.4 billion, compared with $2.9 billion a year earlier.

These are dream numbers for most of the other gaming companies out there, but probably not so for Nintendo. The company said that Wii sales came to “just” 20.53 million units worldwide last fiscal, down 21% from the previous year (the console made its debut in 2006). And Nintendo predicts that this number will go down to 18 million this fiscal year, along with a minus of 14% in Wii software sales.

For the current financial year ending March 2011, Nintendo expects another dip, namely a net profit of “just” $2.1 billion, operating profit of $3.4 billion and revenue of $14.9 billion. Still not bad, considering Nintendo’s hardware portfolio hasn’t changed that much in recent years.

Image credit: Kaynil / deviantArt

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