Nintendo Financial Results Briefing for the Nine-Month Period Ended December 2011

The financial results for the nine-month period ending December 2011 reflect a challenging fiscal environment for Nintendo, characterized by a significant decline in profitability and net sales. The company reported a net loss of 48.35 billion yen for the period, a sharp reversal from the 49.56 billion yen profit recorded during the same timeframe in the previous fiscal year. Net sales fell to 556.17 billion yen, down from 807.99 billion yen in the prior year, driven by weakening demand for legacy hardware and the costs associated with transitioning to new platforms.

The company’s operating income also entered negative territory, recording a loss of 16.41 billion yen, compared to an operating profit of 158.80 billion yen in the previous year. This downturn was exacerbated by unfavorable foreign exchange fluctuations, which resulted in substantial non-operating expenses, including 53.73 billion yen in foreign exchange losses. The gross profit margin narrowed significantly to 23.6%, down from 39.7% in the prior year, reflecting the impact of hardware price adjustments and shifting product mix.

Geographically, the results cover Nintendo’s global operations, with specific sales data provided for Japan, the Americas, and other regions. The report highlights the performance of key hardware platforms, including the Nintendo DS, the Nintendo 3DS, and the Wii. While the 3DS saw growth in software sales toward the end of the calendar year—led by titles such as Super Mario 3D Land and Mario Kart 7—the overall hardware transition period placed heavy pressure on the company’s bottom line. The document concludes with a forward-looking product roadmap, detailing upcoming third-party and first-party software releases intended to stimulate engagement across the 3DS, DS, and Wii platforms in early 2012.