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Nintendo Announces Second Quarter 2007 Financials

by Steven Rodriguez - October 25, 2007, 8:13 am EDT
Total comments: 9 Source: Nintendo

Nintendo raises its profit forecast and Wii shipment targets yet again.

It's that time of the year again. Nintendo has released its financial report for its second fiscal quarter, running April through December of this year, and the numbers are mind-boggling, as usual.

For the six months previous, Nintendo posted net sales of 694.8 billion yen ($6.1 billion), taking in 132.4 billion yen ($1.7 billion) in net profit. Both of these figures are well over double what Nintendo managed in the same six-month period a year ago. As of the halfway point of Nintendo's year, it is forecasting 1.55 trillion yen ($13.6 billion) in net sales and 275 billion yen ($2.4 billion) net profit for the entire year, both about 60% increases over what it did the year before.

All of the profit Nintendo is generating has brought the company to a net worth of $13.8 billion, $8 billion of which is in cash. If you'll recall, Nintendo has zoomed up the charts in terms of market value, and thanks to its unprecedented success as of late, the company is the second largest in all of Japan.

Now, some interesting figures. 77.9% of Nintendo's sales take place outside of Japan, 38.5% in North America and 35.4% in Europe. The European tally has been increasing lately—26.1% a year ago and 27.5% six months ago—and with the current condition of the U.S. economy, it might not be much longer until Europe becomes Nintendo's dominant market.

Something else worth noting is that 2% of Nintendo's income this past half-year came in the form of royalties, and other content income. If you're curious as to how much money Nintendo made off of third party games, it's five billion yen, or around $44.5 million in six months.

The financial report also brings with it new hardware sales data. From April to September, Nintendo has sold 13.4 million Nintendo DS units and 7.3 million Wiis. In total, Nintendo has shipped 53.6 million handhelds and 13.2 million consoles. And speaking of the Wii, Nintendo has once again increased its annual Wii target shipment to 17.5 million consoles shipped by the end of March. Last quarter, Nintendo said it would make 16.5 million Wiis, and at the start of the year Nintendo said it would make 14 million.

On the other end of the hardware spectrum is the Nintendo GameCube. The poor purple lunch box was listed with zero hardware sales in every region except the Americas, where we kept the little guy alive with 80,000 total sales since April of this year. This last hurrah (or last gasp, if you prefer) has nudged the life-to-date global sales for the GameCube up a touch to 21.7 million, the number where it will likely stay for all eternity.

Talkback

Infernal MonkeyOctober 25, 2007

GameCube will be Nintendo's last console, they'll be bought out by Sony in 2004. Super Mario's Killzone will be a launch title for PS3.

LouieturkeyOctober 25, 2007

The Wii will outsell the worldwide lifetime of the GCN in less than two years time. That is just crazy. Just shows you how horrible the GCN did in the market.

UncleBobRichard Cook, Guest ContributorOctober 25, 2007

The Wii is also going out outsell the original XBox in less than two years as well. Does that mean the original XBox did horrible too?

Anywhoo:
"Something else worth noting is that 2% of Nintendo's income this past half-year came in the form of royalties, and other content income. If you're curious as to how much money Nintendo made off of third party games, it's five billion yen, or around $44.5 million in six months."

Nintendo to third parties: "We don't F'in' need you. Stop making crap on our systems, or we'll yank your license."

Come on... Yamatchi would do it. How do you say "Grow Yamatchi's Balls" in Japanese?

CericOctober 25, 2007

44 Million Dollars is all the made from third parties. No wonder Nintendo could care less about them.

Oh my god are you serious? 44 million is a PITTANCE! This... this is... this is crazy. Third party royalties account for just 2% of Nintendo's income?!?!?!?

BigJimOctober 25, 2007

So Nintendo is going to become a 3rd party now, right? face-icon-small-tongue.gif

that Baby guyOctober 25, 2007

Well, you have to wonder: Nintendo did license a ton of games in this past year, right? So if it's only worth 44 million to them, what is Sony getting? They've got less third parties releasing games than the Wii does, right?

Also, remember, that's basically 44 million dollars for doing nothing, which isn't that bad, even though it isn't very much.

roger6106October 25, 2007

$44 million is the money they get paid directly. If there were no third parties a lot less Wiis would have been sold.

UncleBobRichard Cook, Guest ContributorOctober 25, 2007

Really? Which third party games have been moving Wiis? Carnival Games?

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