Nintendo Consolidated Results for the Nine Months Ended December 2010

Nintendo’s consolidated financial results for the nine months ended December 31, 2010, reflect a period of significant contraction compared to the same period in 2009. The company reported net sales of 807.9 billion yen, a 31.7% decrease, and operating income of 158.7 billion yen, down 46.5%. Net income fell sharply to 49.5 billion yen, representing a 74.3% decline. This downturn was driven by slower hardware sales and the negative impact of a strengthening yen, which resulted in 84.4 billion yen in foreign exchange losses.

The company’s core strategy remains focused on expanding the gaming population through accessible hardware and software. During this period, Nintendo sold 15.7 million Nintendo DS units and 13.72 million Wii units worldwide. While software titles such as Pokémon Black and White, Super Mario Galaxy 2, and Wii Party performed well, overall hardware sales failed to reach the record-breaking levels achieved in the previous year, particularly in the United States. Overseas markets accounted for 84% of total net sales, underscoring the company’s heavy reliance on international performance.

Looking ahead to the fiscal year ending March 31, 2011, Nintendo has maintained its previous earnings forecast while adjusting unit sales projections. The hardware forecast for the Nintendo DS was lowered to 18.5 million units and the Wii to 16 million units, though these figures now incorporate the anticipated launch of the Nintendo 3DS. Conversely, software sales forecasts were increased to 135 million units for the DS platform and 170 million units for the Wii. The company continues to operate as a single business segment, with management decisions and resource allocation handled on a centralized, company-wide basis.