Consolidated Results for the Nine Months Ended December 2007 and 2008

Nintendo’s consolidated financial results for the nine-month period ending December 31, 2008, reflect a period of significant growth in net sales alongside profitability challenges driven by macroeconomic volatility. Net sales reached 1,536.3 billion yen, an increase from the 1,316.4 billion yen reported during the same period in 2007. However, operating income of 501.3 billion yen and net income of 212.5 billion yen were negatively impacted by substantial foreign exchange losses resulting from the sharp appreciation of the yen.

The company’s performance was anchored by its electronic entertainment division, which accounted for over 90% of total sales. Hardware momentum remained strong, with Nintendo DS reaching 25.62 million units sold during the nine-month period and Wii achieving 20.52 million units. Software sales also saw robust performance, particularly for titles such as Mario Kart Wii and Wii Fit, both of which exceeded 10 million units sold. Geographically, the company maintained a strong international presence, with overseas sales accounting for 87.2% of total consolidated net sales.

Financial stability remained high, with a capital adequacy ratio of 66.3% as of December 31, 2008. Total assets were reported at 1,768 billion yen, a slight decrease from the previous fiscal year-end, primarily due to dividend payments and income taxes. The company adopted several updated accounting standards during this period, including new regulations for quarterly financial reporting and inventory measurement, though the impact on overall operating income was noted as minor. Looking ahead, Nintendo maintained its focus on expanding the gaming audience while navigating the risks associated with currency fluctuations and market uncertainties.