Nintendo reports profit dropped 21 percent in fiscal first half
TOKYO ” Profit at Nintendo Co., which makes Super Mario video games and GameBoy Advance handheld machines, slipped 21 percent for the fiscal first half fell on year because of slumping sales of consoles and game software.
The Kyoto-based video game maker said Thursday its group net profit for the six months ended Sept. 30 dipped to 36.6 billion yen ($308 million) from 46.45 billion yen a year earlier.
Sales dropped 6 percent to 176.4 billion yen ($1.5 billion) from 188 billion yen. Breakdowns for numbers by quarter weren’t available.
Nintendo forecast a 75 billion yen ($632 million) profit for the full year ending March 31, 2006, on 500 billion yen ($4.2 billion) sales.
The company said its GameCube console sales in North America came to 630,000 for the half, down 36 percent on year, as buyers held off ahead of the introduction of next-generation consoles.
Nintendo plans to launch a new Revolution machine in 2006. Rival Sony Corp. is planning the PlayStation 3 for next year, and Microsoft Corp. has just begun selling the Xbox 360 in the United States.
Nintendo also cited higher research and development costs for the Revolution as well as game software for Nintendo DS, a portable machine with two screens, as taking their toll on earnings.
The company said such costs came to 14.8 billion yen ($125 million) in the first half, up 36 percent on year.