Nintendo Co., Ltd. has logged a two-digit decline in sales and income during Q1 (April - June 2005) of FY2005. Sales dropped 14.0% year-on-year (YoY) to ¥70,684 million and operating income decreased 78.5% YoY to ¥3,754 million. Sales of the "Nintendo DS" game console exceeded 1.38 million units during these three months but sales have moderated recently compared to the first four months after the product launch which marked sales of over 5.27 million units. However, a company spokesperson was optimistic about the future, saying; "We understand it is selling steadily. Although the hardware itself is not highly profitable, once it is widespread, it may trigger a burst of demand for new software titles. We expect a promising outlook ahead." Among the 5.32 million volumes of Nintendo DS software sold so far, "Nintendogs," released in April 2005, is especially selling well.
Sales of "Game Boy Advance" and "Nintendo GameCube" hardware declined about 60%. Also, sales of software for these consoles dropped about 30-40% since time has elapsed since their market release. As for the full fiscal year, the company expects to retain sales equivalent to that of the previous year, as the spokesperson added; "For the game industry, sales for the November-to-January period, including year-end and New Years holidays, that absolutely decides the outcome."
Mami Akasaka, Tech-On!
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