Consolidated Results for the Six Months Ended September 2010

Nintendo’s consolidated financial results for the six-month period ending September 30, 2010, reveal a significant downturn in performance compared to the same period in 2009. Net sales declined by 33.7% to 363.1 billion yen, while operating income fell by 48.0% to 54.2 billion yen. The company reported an ordinary loss of 4.1 billion yen and a net loss of 2 billion yen, largely attributed to the appreciation of the yen, which resulted in 62.1 billion yen in foreign exchange losses. Overseas markets accounted for 81.4% of total sales, leaving the company highly sensitive to currency fluctuations.

The decline in financial performance was driven by a reduction in hardware and software sales across both the Nintendo DS and Wii platforms. Nintendo DS hardware sales dropped to 6.69 million units, and Wii hardware sales reached 4.97 million units. While specific titles such as Pokémon Black and White in Japan and Super Mario Galaxy 2 globally provided some momentum, the overall volume of software sales decreased year-over-year. The company maintains a single-segment business structure, focusing on the development and distribution of electronic entertainment products worldwide.

Looking ahead to the fiscal year ending March 31, 2011, Nintendo has adjusted its financial forecasts to account for the stronger yen and current sales trends. The company anticipates net sales of 1.1 trillion yen and an operating income of 210 billion yen. Management remains committed to its strategy of expanding the gaming population through accessible products, with future growth expectations tied to the upcoming release of the Nintendo 3DS, for which the company has projected 4 million hardware units and 15 million software units in its annual forecast.