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Nintendo Profits In – The Good (DS), The Bad (Wii) & The Ugly (PSP)

Nintendo Wii’s profits right down the drain.

It seems as though the time has come for the previously thought recession-proof gaming developer Nintendo have finally taken a hit in the economic downturn as their profits take a turn for the worse.

The developer had originally forecasted their sales of their popular Wii consoles to be around 27.5 million units, however after a quick rethink they have lowered their predictions by a million units. ds

Maybe they took a look out of the window to see how the recession is affecting everyone else in the crisis.

King of the Hill.

Nintendo have been on top of the world over the last couple of years as their Wii and DS consoles have enjoyed being kings of their gaming markets, although it looks as the champagne is about to stop flowing in the Nintendo office.

There’s still reason to smile over at Nintendo however because the DS sales are predicted to rise through 2009 by 1 million units.

Where’s the PSP2, Sony?

Nintendo fanboys should relax, however, as the company is not the only developer in the market suffering from the economic downturn.  Good news for Nintendo, and not so good news for Sony, is that Sony has declared they are enduring a staggering 95 per cent collapse in quarterly profits – ouch!

pspSony has been keeping quiet about the possibility of the PSP2 and the only information out there about the console is through secondary sources and guesswork.  Maybe they’re waiting to hit rock bottom and then launch the PSP2, making their way quickly back up to the top of the ladder in an explosion of glory – maybe not…

Either way they have to do something, the PSP has been struggling against the DS and the PS3, although picking up speed, has still been lagging against the massively successful Wii.

Let’s talk money…

Sales aren’t the only thing that Nintendo have to worry about though, and the current instability in the world’s currency is losing the developer a fair old wad of money.

Nintendo lost 174 billion Yen in the last three quarters of 2008 simply due to the volatility of the currency around the world.  That’s not really what you need when you’re fighting to stay successful through a recession.

Nintendo’s day in the sun is over?

A KBC financial analyst, Hiroshi Kamide, is proclaiming that the massive success of the Wii is finally coming to an end.  “Today’s revision suggests that the roaring pace of Wii growth that we’ve seen until now may be over.

“The numbers also imply that we are going to see a sudden collapse in the fourth quarter from record margins to some of the thinnest margins Nintendo has experienced for three years,” said Kamide.  The future months are not set to be so healthy for the developer.

DS or PSP?

If you’re thinking of buying a console soon, let us know your thinking behind your decision.  Let the DS/PSP argument rage on…

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