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Nintendo Q2 2007 Earnings Report

by Steven Rodriguez - July 26, 2007, 6:18 pm PDT
Total comments: 5 Source: Nintendo

Profits up 400% from Q2 2006; Wii shipment target upped to 16.5 million by the end of next March.

This week Nintendo released its second quarter fiscal highlights, and it comes as no surprise that it's making serious money off of the continued success of the Wii and DS. For the three month period that ended on June 30, the company's net sales total was 340.4 billion Yen ($2.87 billion). That led to a net profit in the quarter of 80.3 billion yen ($680 million), which is an increase of a staggering 416% over the same period last year.

The Nintendo DS sold through another 6.98 million units in the three month reporting period, bringing its life-to-date figure up to 47.27 million units worldwide. Pokémon Diamond and Pearl were the big software titles of the quarter, selling through a 3.55 million units during the period and 8.76 million units in total. As for the Wii, Nintendo moved out 3.43 million more consoles during the three month period, which inches the system toward the 10 million unit mark: There are now 9.27 million Wiis in the world. Super Paper Mario, Mario Party 8 and Wii Play were cited by Nintendo as big reasons for strong hardware and software sales.

The biggest piece of news to come out of the financial report is that Nintendo has increased its shipment forecast of the Wii to 16.5 million systems by the end of March 2008. Previously, Nintendo said that it could produce 14 million units. This will hopefully make it a little easier to find a console this holiday period, when demand for game products are traditionally at their highest.

With an increase in console shipments also comes an increase in expected revenue. Nintendo is now forecasting a year-end net sales figure of 1.4 trillion Yen ($11.7 billion), up from 1.1 trillion Yen ($9.5 billion) from the previous quarter's estimate. Profits are now estimated to hit 245 billion Yen ($2.1 billion) instead of the previous guess of 175 billion Yen ($1.5 billion), an increase of 40%.

Talkback

If Wiis continue to be perenially sold out until next March (which looks more and more likely, eerily recalling similar situations for the DS Lite), then by Macrh 31st, Nintendo would have sold more than 21 million Wiis worldwide!

Also... it puts them on track to be the system that is the closest possible resemblance of PS2 style sales. I'm not saying it'll be a PS2, because it obviously won't. I'm just saying it'll be the closest thing to it that we get this generation.

steveyJuly 26, 2007

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*Insert We're in the money song here*

wulffman04July 26, 2007

Mary Party 8 *sigh*

UltimatePartyBearJuly 27, 2007

I guess this shouldn't really be that shocking. Nintendo was raking it in with the GameCube in spite of its market share. Once they had a big hit on their hands, insane profit growth was inevitable.

I like your article better, Windy. Mine didn't go into the numbers quite so much!

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