Nintendo Shares Fall After Quarterly Profit Drops 15%
Stock Chart for Nintendo Co Ltd (7974)
Nintendo Co., the world’s largest maker of video-game players, fell the most in a month in Osaka trading after the company posted a 15 percent drop in second- quarter profit on lower demand for the Wii and DS.
Nintendo declined 2.6 percent to 20,740 yen as of 9:47 a.m. on the Osaka Securities Exchange, poised for the biggest drop since Sept. 30. The Nikkei 225 Stock Average fell 1.4 percent. The shares have lost 5.9 percent this year.
Net income fell to 23.2 billion yen ($286 million) in the three months ended September, as revenue declined 41 percent to 174.5 billion yen. The figures were derived from first-half results released by Kyoto-based Nintendo yesterday.
Nintendo is forecasting its smallest annual profit in six years as demand for the Wii slumps and consumers hold off on buying DS players before the release of a 3-D model. President Satoru Iwata plans to introduce the 3DS handheld this fiscal year and a heart-rate-tracking “Vitality Sensor” accessory for the Wii to revive earnings growth.
The company sold 4.97 million Wii consoles in the first half ended Sept. 30, a 14 percent drop from a year earlier, while sales of DS players fell 43 percent to 6.7 million units. Nintendo kept its outlook for full-year sales of the handheld to decline 13 percent to 23.5 million units and Wii sales to drop 15 percent to 17.5 million units.
Nintendo said in June that the 3DS handheld, whose debut was pushed back until after the year-end holiday season, will allow users to see 3-D images without the need for special glasses. The product has three cameras and a motion sensor to create the 3-D effect.
The 3DS will go on sale in Japan on Feb. 26 for 25,000 yen and the following month in the U.S. and Europe, where the price hasn’t been set, Nintendo said last month.
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