Nintendo Sales Up, Profits Down, Financial Forecast Revised

Nintendo has just released its financial statement for the nine-month period ending December 31, 2008. In short, sales were up, but profits down.

Compared to the same period last year, net sales were up 16.7 percent to the equivalent of US$17.07 billion. Net profit, however, dropped 17.9 percent to the equivalent of $2.36 billion.

According to Nintendo, income levels were impacted by the large exchange loss due to the yen's spike in value. The strong yen has negatively impacted other international Japanese corporations such as Toyota and Sony.

As a result, the company has released a revised financial forecast for the financial year (April 1, 2008 to March 31, 2009). The previous financial forecast that was announced on October 30, 2008, predicted the yen equivalent of US$22 billion in net sales. It is now forecasted to be $20.2 billion, a 9 percent decrease.

However, net sales are predicted to be up 8.8 percent for the financial year.

Net income was originally forecasted to be $3.77 billion last December, but the revised forecast pegs it at $2.55 billion, a 10.6 percent drop.