The problem is that the yen has appreciated wildly against the dollar since that time -- what was $766 million a year ago, would be more like $850 million today. In and of itself, that kind of appreciation might look spectacular, except 81.4 percent of Nintendo's sales have been overseas during the current fiscal year. When the yen is this strong, earnings on Japanese exports (sold with importers' currencies) are dashed on their way back to Japan (where they are converted back to yen). According to Nintendo's first-half report (April–Sept. 2010), "foreign currencies generated exchange losses totaling 62.1 billion yen," and, in turn, the company suffered net losses of ¥2 billion (about $24.6 million) for the period.
Keep in mind, this loss comes after selling 4.07 million copies of Pokémon Black and White since September 18 (in Japan alone); 5.1 million units of Super Mario Galaxy 2; and a million-plus Wii Party games. Worldwide, DS software sales totaled 54.84 million units, while Wii games accounted for 65.21 million units sold in the first-half of the fiscal year.
As for hardware, the various DS models combined to move 6.69 million units (including 2.26 million DSi and 3.21 million DSi XLs), as Wii racked up another 4.97 million units sold during the period. And did you hear? The new red Wii and DSi XL are going to be released next month to celebrate ... uh, the 25th anniversary of Super Mario Bros., of course!
Nintendo DSi XL
Nintendo Wii console