Nintendo's Q1 fiscal results show sales slump
Nintendo released its latest financial earnings report for the period ending June 30 (Q2 to us, but fiscal Q1 to those business types at the house Mario built) ... and it could've been better. Don't be fooled: Nintendo still managed to make profits across the board, but compared to the same period last year, profits weren't nearly as dramatic.
First, let's talk DS. Nintendo revealed lifetime sales of the DS has reached a whopping 107.75 million units and that the new DSi has managed to reach a respectable 6.68 million. Hardware sales for this quarter were lower than last year, however, as Nintendo revealed it only sold 5.97 million handhelds compared to the 6.94 million sold in 2008's fiscal first quarter. Even software was down quite a bit, with a mere 29.09 million units of DS software flying off store shelves this quarter compared to the more impressive 36.69 million of last year.
On the Wii side, Nintendo revealed lifetime sales have reached 52.62 million units, but that 2009 console sales were down as well. Nintendo reported that during this year's fiscal first quarter, the company could only unload 2.23 million Wiis compared to the 5.17 million it sold during this same time period last year. Software on the platform also took a hit, as Nintendo recorded only 31.07 million units managed to find consumer's homes compared to the 40.41 million of last year. It's important to note that last year's sales were significantly boosted by the releases of Mario Kart Wii and Wii Fit.
So, as one can guess, Nintendo saw its massive profits shaved down quite a bit this past quarter. With all of the dips in hardware and software sales, Nintendo saw its net sales drop a staggering 40 percent to ¥253.4 billion ($2.65 billion) compared to last year's ¥423.38 billion ($4.43 billion). Nintendo also saw a drop in its operating income, which fell from last year's ¥119.19 billion to ¥40.4 billion ($1.25 billion to $422.5 million), a decline of 60.61 percent. So ... who do you call when your money-printing machine is on the fritz?
