Nintendo's yearly profits drop, Wii sales fall

Today, Nintendo posted its 2009-2010 fiscal earnings, and the Japanese gaming giant is beginning to stumble. For the first time in six years, Nintendo’s annual net profit fell, dropping 18% to ¥228.64 billion ($2.45 billion) in this fiscal year, which ended in March 2010. Nintendo blamed the slide on the appreciation of the yen, a late 2009 price cut on the Nintendo Wii, and the lack of strong game titles to drive the sale of hardware. Speaking of hardware sales…they lagged a bit, with Nintendo selling 20.5 million Wii consoles, down from 26 million in the previous year. The DSi showed a similar decline as Nintendo sold 27.11 million units, down from 31.18 million in the previous year. Despite the decline, Nintendo remained optimistic for the current fiscal year with a forecast of: ¥200 billion in profits, 18 million Wii units, and 30 million DSi units. The Japanese gaming company dismissed concerns over increased competition from the XBOX 360, the Playstation 3, and the Apple iPad citing its knowledge of the gaming business and its unique hardware, which appeals to a wide audience. Nintendo did not comment on the future of the Wii hardware, but did confirm the rumored 3DS, a new handheld gaming device that will allow 3D gameplay without the need for special glasses.Read (PDF File)