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Market experts predict first Nintendo profit slump for six years

by Steven Williamson on 22 October 2009, 12:15

Tags: Nintendo (TYO:7974), DS, Wii

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Market experts are predicting that Nintendo may be heading for its first drop in profits for six years.

Satoru Kikuchi, of Deutsche Bank AG told Bloomberg that "Nintendo may cut its profit projection about 30 per cent because of sluggish sales in the first half, the price cut for the Wii and currency-related impact. Investors are expecting the company to fully reflect its business environment in its forecast," which will be released on October 29.

Though Nintendo slashed the price of the console in the U.S. and Europe recently, sales have continued to fall, though NPD sales figures for September still indicate that the Japanese company shifted a combined total of almost 1 million units of its Wii and DS consoles.

Bloomberg predicts that Nintendo's net income is set to fall by around 11 per cent to $2.7bn.

Nintendo will be hoping that the introduction of the Black Wii, which is released in the UK and Republic of Ireland from 6 November and mainland Europe on 20 November will encourage strong Christmas sales.

HEXUS Forums :: 1 Comment

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I don't think it's the recession that is completely to blame….

Lots of people that don't normally buy consoles bought a Wii and had some fun with it, then shelved it….then started selling them off creating a rather large second-hand market for them.

The fad is wearing off for many.