Nintendo Q1 profits tumble 61%

Nintendo has become the latest video games company to suffer significant year-on-year declines, with net profits down 60.6 per cent in Q1 2009-2010 to YEN 42 billion, compared to YEN 107 billion in the same period a year before.

The firm this morning reported operating profits of YEN 40bn for the three months ending June 2009 – representing a 66 per cent drop compared to the same period in 2008.

Sales fell to YEN 253 billion from YEN 423 billion a year ago.

Wii sales crashed from 5.17 million units in the first quarter last year to 2.23 million this year.

DS sales fell from 6.94 million to 5.97 million year-on-year. DSi made up 3.65 million of the total figure.

Nintendo is sticking by its previous prediction that its full-year figures will show a 12 per cent year-on-year decline at YEN 490bn. If correct, this will be the platform holder’s first annual profit drop in four years.

It expects to sell 26m Wiis and 30m DS’ in the current fiscal year.

Nintendo’s shares have dropped 21 per cent since the start of the year, worse than the Nikkei’s average decline of 15 per cent so far in 2009.

Falling sales of the Wii have been pinned as the main culprit, though speculators have also highlighted the rise of the iPhone and the possible effect that is having on the appetite for DS.

Indeed, Ubisoft earlier this week revealed that its DS returns are down 67 per cent year-on-year.

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