Nintendo's Record Year: 150% Jump in Operating Profit

[Paco]

<TABLE style="MARGIN: 0px 13px 13px" cellSpacing=0 cellPadding=0 width=499><TBODY><TR><TD class=gy12>After raising its forecast several times, the final results are in for Nintendo and they're very, very good. Sales and profit were way up and are expected to climb again in the new fiscal year. The DS fueled Nintendo's growth as 23 million units were sold. The Wii has sold 5.84 million. More within...

</TD></TR><TR><TD class=gy12>As was expected, after Nintendo raised its forecast for the fourth time, the company today has officially announced record results for the fiscal year ended March 31. Revenues were up 90 percent to 966.5 billion yen and operating profit climbed an incredible 150 percent to 226 billion yen—both record highs for Nintendo.



It should come as no surprise that these fantastic results were largely driven by the Nintendo DS handheld. Nintendo had full-year sales of 23 million units of hardware and 123 million of software. Life-to-date the DS install base worldwide has grown to over 40 million.



Also contributing to Nintendo's bottom line has been the strong start for the Wii. Nintendo said that through March 31, the company has sold through 5.84 million units. It was Nintendo's goal to ship 6 million worldwide by the end of its fiscal year. Along with the nearly 6 million Wiis sold, almost 29 million Wii games have been purchased. Nintendo boasted that the Wii has "taken a step toward becoming a cultural phenomenon, appealing widely to both avid and previously disinterested game-playing audiences."



In the new fiscal year (which started April 1), Nintendo is anticipating sales of another 14 million Wiis, which would bring the install base to nearly 20 million by this time in 2008. The company also expects to sell another 55 million Wii games during that time.



Nintendo doesn't really see its DS slowing down anytime soon, either. For the current fiscal year, the company has forecast sales of 22 million more units and 130 million units in DS software sales.



After posting a record year, the company believes it will have an even better year now. Nintendo is forecasting consolidated sales to increase nearly 18 percent to 1.14 trillion yen and operating profits to increase nearly 20 percent to 270 billion yen.

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Nintendo owns everyone! I really wonder if Sony and Microsoft see these results and wonder if they took a wrong turn?