Nintendo Announce 2010/11 Profits
Nintendo Japan have now announced their end of year profits and it’s a big change to what we’re used to seeing from the company that is used to rolling in cash. The happy image of the DS printing money opitimises Nintendo’s success in the current generation; however, with the vast change in the currency market, the global recession and more recently the rumours of the Wii 2 their overall profits have been hit.
Here’s a graph – it makes for easier reading:
As can be seen, overall, this is a decrease on YOY operating profits and income by between 33%-66%, which is a huge drop for a global company.
However, Nintendo are expecting a modest increase across the board as part of their financial forecast, as detailed below:
So overall, there’s an expectation for a modest increase in sales, but the actual income should increase significantly. Nintendo have not detailed why they believe the income will increase by 42%; however, i’s highly likely that the strength of the Yen will come into question over the next few months with Japan suffering a natural disaster and intervening in the currency market directly prior to the disaster.
Overall it looks like the growing uncertainty in the current markets financially, the credit crunch and the overall saturation of the market of the Wii have hit Nintendo fairly hard. Nintendo have officially confirmed that the 11 March Earthquake and subsequent Fukushima Nuclear Disaster have not impacted Nintendo operations (with Nintendo HQ being in Kyoto, the other side of the country).