Friday, April 27, 2007

Nintendo is making money... a shitload of it.

Nintendo has reported a jump of 77% in its net profit for the Japanese fiscal year ending 31 March 2007 due to well, you guess it, the unexpected success of Wii and the continuious demand for the DS.

Unlike Microsoft and Sony, the Wii is actually a cash cow for Nintendo. They actually make money, as opposed to Microsoft's and Sony's approach of "loss money on console, but make money on software". The current mode for Nintendo is "make money on console, and make more money on software".

We can hardly blame them. The DS has sold 24 million units worldwide last year. Hell, even my household has 2 DSes. Since launch, Nintendo has sold close to 6 million Wii. The weaker Japanese Yen also helped to boost their foreign currency earnings.

The company forecasts to sell 22 million DS and 14 million Wii this fiscal year. If they can keep up the current trend, they might even sell more.

Net profit for 2006-7 fiscal year is 174.29 billion yen, revenue rose to 966.53 billon yen. That's like... a shitload of money. And if you're got shares in Nintendo JP, you will get a dividend of 690 yen per share. Nintendo JP closed at 37,800 yen on Friday.

Source: Forbes

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