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Nintendo Profit Drops 51 Percent


djamb3

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Nintendo Profit Drops 51 Percent

 

This morning, Nintendo reported that its first-half operating profit dropped 51 percent, citing sluggish Gamecube sales, price cut in Nintendo DS, and hefty development costs for the Nintendo Revolution. Shares of Nintendo have risen 13.2 percent for the first six months of the business year, but have underperformed the Nikkei average which has rose 16.3 percent.

 

On a similar note, Nintendo also changed its forecasts for sales of various consoles and handhelds. The company has forecasted fewer Nintendo DS and Gamecube units to be sold, but has increased its forecast for Game Boy Advance units due to the newly released Game Boy Micro system.

 

 

in nintendojo

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That doesn't sound good but the problem with these per cent numbers is that you have no idea how much money it really is - so 50% could seem pretty bad, when in the end they still have a lot of operation profit left - sure they had double the operation profit before.

And I guess a drop towards the end of a console generation is just normal.

But if the Revo performs as we all hope Nintendo won't have to worry anymore :)

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Not only are they still in profit, but this is natural.It's the last breath for GC, so sales are bad, the handheld market place is more crowded now, the Yen isn't doing very well, there's an economic crisis going on with oil prices and all and they're investing in Revolution without seeing the money return until it launches. So, it's pretty normal.

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