Financial Results Briefing: Nine-Month Period Ended December 2010

The financial results for the nine-month period ending December 2010 reflect a significant contraction in performance for Nintendo Co., Ltd. compared to the same period in the previous fiscal year. Net sales for the nine months totaled 807.99 billion yen, a marked decline from the 1.18 trillion yen reported for the same period in 2009. Operating income also saw a substantial decrease, falling to 158.79 billion yen from 296.65 billion yen, while net income dropped to 49.56 billion yen from 192.60 billion yen. This downturn was exacerbated by significant non-operating expenses, specifically foreign exchange losses totaling 84.40 billion yen, which heavily impacted ordinary income.

The company’s performance was driven by global hardware and software sales across the Nintendo DS and Wii platforms. Despite the overall decline, specific titles maintained strong momentum; for instance, Pokémon Black and White versions achieved 5.32 million units sold globally, and Wii Sports continued to show high life-to-date figures. The geographic scope of these sales remained broad, covering Japan, the Americas, and other international markets, with the Americas serving as a primary driver for both hardware and software volume.

Looking ahead, the company’s strategic focus shifted toward the launch of the Nintendo 3DS, scheduled for release in early 2011 across Japan, the United States, and Europe. The briefing outlines a robust software pipeline for the 3DS, featuring both first-party titles and third-party support from major publishers. These results underscore a transitional period for the company as it managed the maturity of its existing hardware cycle while preparing for the introduction of new gaming technology.