Nintendo 3DS sells 3.6 million, profits down 66%

Nintendo's fiscal results for the year ending March 2011 were released this morning, showing good sales for the 3DS, but profits that fell well below analyst expectations.

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Nintendo released its financial results for the fiscal year ending in March 2011 this morning. Besides using the opportunity to tease its next console, the company revealed profit declines due to flagging Wii and DS sales, and shared some sales numbers for the new 3DS.

First, the good news. Nintendo has sold about 3.61 million units of the 3DS worldwide, making for what Nintendo calls a "smooth start" in sales. Though Nintendo was no doubt hoping for more of a breakout hit, the 3DS sales so far seem to be aligning with the company's expectations.

Net income, on the other hand, was significantly lower than company estimates. Nintendo brought in 77.6 billion yen (approximately $946 million), which might sound great until you recall that the company predicted 200 billion yen ($2.1 billion) for the period. This accounts for a 66% drop, which Nintendo attributes to appreciation of the yen and a price drop for the Nintendo DS hardware series.

"The market reaction is likely to be negative, because the profit outlook fell short of the consensus," analyst Yusuke Tsunoda told Bloomberg. "Sales of Wii software are forecast to plunge, while at the same time the company's outlook is probably taking into account a price cut for the console."

For the period ending in 2012, Nintendo expects net income of 110 billion yen ($1.3 billion), and net sales of 1.1 trillion yen. It will "vigorously spread" the 3DS, launch its new eShop, and rely on Wii and DS sales with evergreen titles and the launch of The Legend of Zelda: Skyward Sword.

Nintendo also includes a brief mention of the Japan earthquake, saying the effect it may have is "unpredictable." The company claims it hasn't suffered any direct damage to production facilities, but expects an indirect impact from "individual consumption patterns or economic conditions" in Japan.

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  • reply
    April 25, 2011 8:15 AM

    Steve Watts posted a new article, Nintendo 3DS sells 3.6 million, profits down 66%.

    Nintendo's fiscal results for the year ending March 2011 were released this morning, showing good sales for the 3DS, but profits that fell well below analyst expectations.

    • reply
      April 25, 2011 8:16 AM

      The Wii and DS and software sales are falling quick. Thus thats why Nintendo is getting new hardware out asap.

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        April 25, 2011 7:04 PM

        ASAP? No, it's been 6 years, so it's time for a new console. History repeats, just as it has for a few decades.

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          April 25, 2011 7:36 PM

          Yes but both the Xbox 360 and ps3 are older and their replacements are no where to be seen. I think if the sales drop wasn't so drastic (66% drop since last year) we wouldn't be hearing about the Wii replacement.

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            April 27, 2011 12:13 PM

            The Wii came out in the same month as the PS3, the DS was out a year before the 360 (two years before the PS3 and Wii).

            The wii's sold 86 million units, the DS has shifted 146 million units and the 360 and ps3 have each sold 50 million units.

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              April 27, 2011 12:13 PM

              Not to mention the Wii and DS make profit on hardware and the PS3 and 360 make a loss.

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      April 25, 2011 8:32 AM

      The problem is that it's quite a pricy unit, and the majority of users are kids. I doubt parents would dish out that kind of cash if their kid already has a DS.

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        April 25, 2011 8:37 AM

        I think it is more to due with the fact there are no killer games pushing the 3ds as a platform. I expect the 3ds will sell well and once a big game whether it be a Pokemon or Ocarina or whatever comes out to drive sales of the system. Also it is going to be the big ticket item of Christmas.

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          April 25, 2011 8:51 AM

          yup, it needs to drop $50 and grow the library, plus almost all the online functionality is still a month or two off from showing up.

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          April 25, 2011 8:58 AM

          Pokemon + MGS + Resident Evil.

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      April 25, 2011 8:57 AM

      They are going to sell a but ton of these things (3DS) this Christmas once a few good games are out.

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        April 25, 2011 9:40 AM

        I agree, Nintendo will likely focus on the growing 3DS library and new Wii Zelda this holiday.

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          April 25, 2011 7:55 PM

          Will Skyward Sword be any good though?

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            April 27, 2011 12:14 PM

            It's a Zelda game. Of course it'll be good.

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