Nintendo’s Q2 profit falls 52%, cuts forecast

Nintendo’s Q2 profit falls 52%, cuts forecast
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First Published: Thu, Oct 29 2009. 12 42 PM IST
Updated: Thu, Oct 29 2009. 12 42 PM IST
Tokyo: Nintendo Co Ltd reported a 52% slide in quarterly profit on Thursday, hurt by slowing demand for its flagship Wii videogame console and the strong yen, and slashed its full-year forecast.
Demand for Nintendo products has cooled as rival Sony Corp has bolstered its line-up of console games, and as Apple Inc’s iPhone has become a popular platform for handheld games.
Nintendo’s earnings, like those of other Japanese exporters, have been blunted by the stronger yen, which eats into overseas profits.
Nintendo, which also faces stiff competition in the videogame market from Microsoft Corp, posted an operating profit of ¥64 billion ($709 million) in the July-September quarter, compared with ¥133 billion a year earlier.
That was also lower than an average of ¥90 billion in a poll of four analysts by Thomson Reuters.
Reuters calculated the quarterly figure by subtracting Nintendo’s first-quarter results from the first-half figures released on Thursday.
Nintendo cut its operating profit forecast for the year to March 2010 by a quarter to ¥370 billion, ending a three-year run during which it booked a record profit on booming demand for its Wii console and DS portable device.
Analysts are expecting a full-year profit of ¥442.8 billion, according to Thomson Reuters.
In September, Sony’s Playstation 3 usurped Nintendo’s Wii to become the top-selling US video game console for the first time since its release, according to research group NPD.
Shares of Nintendo finished down 1.1% ahead of the results. The stock has declined about 28% so far this year, compared with a 14% rise in the Nikkei 225 share average.
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First Published: Thu, Oct 29 2009. 12 42 PM IST