The gaming market leader may be looking at their first annual profit decline in six years.
A combination of factors, including a decline in Wii console sales and the strengthening of the yen, may bring Nintendo to cut its earnings forecast and report its first annual profit decline since the fiscal year ended March 2004. Bloomberg reports that, in the consensus opinion of analysts, Nintendo's net income might fall as much as 11 percent to 249.3 billion yen ($2.7 billion) this fiscal year.
The six-year run of increasing profit from Nintendo includes the launch of successful hardware products such as Nintendo DS (2004), Nintendo DS Lite (2006), and Nintendo Wii (2006), all of which have been overwhelming successes for the Kyoto-based company.
Aside from a decline in Wii console sales, another factor in the decline in profit has been the strength of the yen, which is reducing the value of Nintendo's overseas sales. Analysts at Morgan Stanley have recently raised their currency exchange value impact projection from 23 billion yen to 37 billion yen.
Nintendo will report their yearly earnings on October 29.