Japan’s Nintendo Enjoys Profit Rise

May 8th, 2009 at 12:00 am
 


Nintendo Logo

It seems that in spite of the current global recession, there are still some other companies that have not yet been severely affected by the events, at least for now. Consider Japan’s Nintendo which recently reported an 8.5 percent rise in annual profit. It is one of the very few big name companies in Japan that was still able to report profits despite the global downturn.

The rise in profits was reported to be fueled by healthy sales of its popular Wii game consoles and the portable DS handhelds. The company reported a record 279.09 billion yen (around US$2.8 billion) in net profits for the fiscal year ending in March. The figures were up from 257.34 billion yen recorded the previous year. Fiscal year sales totaled 1.839 trillion yen, up from the 1.672 trillion yen posted the previous year. Around 87.5 percent of these sales came from the overseas market.

The higher fiscal year figures came as a result of better sales performance for its Nintendo Wii game console. The Wii, with its innovative motion sensitive controller, has reached over 50 million unit sales, the fastest pace for any video game console ever. The same can be said of its similarly successful Nintendo DS handheld consoles, which had so far reached around 101.78 million unit sales.

But despite the welcome figures, Nintendo is expecting lower sales figures in the coming months due to the current downturn still affecting the global market. The company has since lowered their forecasts for shipments for the coming first quarter but remain bullish about the future for the video game industry. By offering additional features to the Nintendo Wii such as video on demand and better online services, the company hopes to drum up the demand for their newer video console releases in the future.