Nintendo released its annual fiscal report today, and even though the company is still looking in pretty good shape their numbers are down considerably across the board
for the first time in years. Specifically, the company raked up $15.2 billion in revenue last fiscal year, which ended March 31, down 22% from last year. Operating profit dropped 36% to $3.8 billion and net profit was down to $2.4 billion from $2.9 billion a year earlier.
Nintendo blamed the weaker financial performance on several factors, including a recent price drop on the Wii amid competition from Microsoft and Sony, fewer strong Wii software titles in the first half and a stronger Yen.
The appeal for Wii consoles and DS handhelds also appear to be waning. The company sold 20.53 million Wii consoles over the period -- a drop-off of 21% compared to last fiscal year -- and even with Nintendo launching the new DSi XL sales on the handheld front fell 12% to 27.11 million units. Of course, these are dream numbers for most other gaming companies out there but are cause of concern over at Nintendo.
Looking forward the Japanese giant remained modest in its forecast for the current fiscal year ending March 2011, predicting a net profit of around $2.1 billion -- down another 12.5% from its latest results. With both Sony and Microsoft working on their own motion sensing technologies, it seems the company will need to focus on delivering quality games and maybe even refreshing its hardware to revive sales.