Nintendo Consolidated Financial Highlights: Nine Months Ended December 2005

Nintendo’s consolidated financial results for the nine-month period ending December 31, 2005, reflect a strategic transition toward the Nintendo DS platform and the implementation of the Nintendo Wi-Fi Connection service. The company reported net sales of 412.3 billion yen and a net income of 92.1 billion yen, representing a 36.1% increase in net income compared to the same period in 2004. While operating income declined by 19.7% to 82.7 billion yen, total income before taxes benefited significantly from a 45.2 billion yen foreign exchange gain.

The handheld segment served as the primary growth driver, fueled by the success of the "Touch! Generations" software lineup, including titles such as Nintendogs, Brain Training, and Brain Flex, each surpassing 1 million units sold. The Nintendo DS hardware achieved record-breaking momentum, becoming the fastest-selling gaming device in Japan to reach 5 million units. Furthermore, the introduction of the Nintendo Wi-Fi Connection facilitated strong software performance, with Mario Kart DS selling over 3 million units in the third quarter alone and Animal Crossing: Wild World achieving rapid adoption in both Japanese and U.S. markets.

Geographically, the results encompass global operations, with specific performance data provided for Japan, the United States, and Europe. The financial position remains robust, with total assets reaching 1,180 billion yen as of December 31, 2005. Despite a decrease in net cash and cash equivalents due to treasury stock acquisitions and dividend payments, the company maintained its previously announced annual financial forecasts for the fiscal year ending March 31, 2006, projecting net sales of 500 billion yen and net income of 75 billion yen.