We store cookies, you can get more info from our privacy policy.

Nintendo Revises Fiscal 2009 Projections Upwards

by Carmine Red - September 3, 2008, 5:16 pm EDT
Discuss in talkback! Source: Press Release

Nintendo's estimates are usually conservative, but the Japanese company is now a little more optimistic than before thanks to the success of the Wii and the DS.

As if they weren't expecting to sell enough already, Nintendo has now revised their fiscal and shipment estimates for the current fiscal year upwards. By the end of the fiscal year ending March 31, 2009, Nintendo expects to sell more videogame hardware and software, and make even more money doing so.

Nintendo's forecasts tend to come off as conservative estimates, especially in the face of their present market-leading success. In this case, continued robust sales of their videogame products and a change in anticipated trends in foreign currency exchange rates were the indicators that led Nintendo to provide slightly more optimistic forecasts.

Compared with the 2008 Fiscal Year report Nintendo put out in April, Nintendo is revising its net income forecast to more than 410 trillion yen (approximately $3.78 billion US). That indicates an increase of 26.2% compared with the 325 trillion yen (approximately $3 billion US) they had originally expected.

Nintendo also increased their estimates as to how many units of Nintendo DS and Nintendo Wii products they would ship by the end of next March. In April they expected to ship 28 million units of DS hardware, an actual decrease from the previous year. Now however, Nintendo has an estimate that actually beats last year's hardware shipments: 30.5 million units. With the Wii, Nintendo had originally stated their already ambitious expectations of 25 million hardware units shipped. Now they anticipate shipping 26.5 million units. They also believe they'll sell more software for both systems than originally believed.

NINTENDO REVISES FINANCIAL AND SHIPMENT FORECASTS UPWARD

Nintendo Co., Ltd. revised upward its financial and unit shipment forecasts for both the six month period ending September 30, 2008, and for the full fiscal year ending March 31, 2009.

Compared with original full year forecasts issued on April 24, 2008, the company sees increases in sales by 11.1%, in operating income by 22.6%, and in net income by 26.2%. Financial revisions were the result of continued robust sales for both Wii and Nintendo DS, as well as changes in the expected foreign currency exchange rates based on recent trends in the foreign currency exchange markets.

On the same basis, new forecasts for full year global hardware and software unit shipments for both platforms increased as follows:

Subject / Estimate as of 4/08 / Estimate as of 8/08

Nintendo DS hardware / 28 million / 30.5 million

Nintendo DS software / 187 million / 197 million

Wii hardware / 25 million / 26.5 million

Wii software / 177 million / 186 million

In addition, the company announced a change in dividend policy. For the full fiscal year ending March 31, 2009, it issued a revised dividend estimate of ¥1,680 per share, an increase of 22% over the original estimate stated on April 24, 2008.

Got a news tip? Send it in!
Advertisement
Advertisement