Nintendo 2009 Annual Report Download - page 22

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During the fiscal year which ended March 31, 2009, the worldwide economy deteriorated significantly primarily due to rising oil
prices, higher raw material costs, the credit crisis caused by the subprime home mortgage crisis in U.S. and a severe financial crisis
from September onward. Although political authorities in many countries have been enforcing financial stabilization policies and
economic stimulus measures, the future of economies around the world is still unclear.
However, the video game industry, which has been less impacted by the economic downturn than most industries in the past,
remained relatively stable in spite of the large consumer spending decline.
Under such circumstances, Nintendo has continued to execute its strategy of expanding the gaming audience mainly by
broadening the definition of video games. A wider variety of games, from not only Nintendo but also third-party publishers, have
attracted both novice and skilled game players causing sales of Nintendo DS and Wii to continue to grow. As a result, Nintendo
achieved record results in both net sales and profit. Net sales were 1,838.6 billion yen (US$18,761 million) increased by 9.9% from
the previous fiscal year, including overseas sales of 1,609.6 billion yen (US$16,424 million), which accounted for 87.5% of total
sales. Operating income was 555.2 billion yen (US$5,665 million) increased by 14.0% from the previous fiscal year, ordinary income
was 448.6 billion yen (US$4,578 million) increased by 1.8% from the previous fiscal year, though foreign exchange losses were
133.9 billion yen (US$1,366 million) caused by the strong yen, and net income was 279 billion yen (US$2,847 million) increased by
8.5% from the previous fiscal year.
Overview
With respect to sales by business category, within the handheld device segment of the electronic entertainment products
division, worldwide unit sales of Nintendo DS hardware were 31.18 million units during this fiscal year and have reached 101.78
million units life-to-date. Nintendo DS Lite continued to enjoy robust sales abroad while Nintendo DSi was released on November
1, 2008 in Japan. Sales of Nintendo DS exceeded 100 million units faster than any console or handheld video game hardware in
history. Regarding Nintendo DS software sales, Pokémon Platinum Version sold 3.75 million units and Kirby Super Star Ultra sold
2.36 million units, despite the fact that they were not released in Europe. In addition, Rhythm Heaven and Wagamama Fashion
Girls Mode were released in Japan during this fiscal year and made a strong contribution to sales in the category. Long-term selling
titles such as Brain age: Train Your Brain in Minutes a Day! and the sequel version Brain Age 2: More Training in Minutes a Day!
reached a total of 7.31 million units during this fiscal year and 31.12 million units life-to-date. As a result, the number of
million-seller titles life-to-date (including third-party publishers) increased from 57 to 91 compared with the previous fiscal year.
In the console business, Wii hardware enjoyed robust sales abroad and achieved worldwide sales of 25.95 million units the
current fiscal year and has reached 50.39 million units life-to-date. Wii became the fastest home video game hardware in history to
reach 50 million unit sales. Regarding Wii software, Mario Kart Wii, which allows players to feel as if they were actually driving by
using the Wii Wheel, sold 15.4 million units. Animal Crossing: City Folk, which allows players to play and chat with their distant
friends through the Wii Speak accessory, sold 3.38 million units, and Wii Music, which allows players to easily enjoy playing
simulated musical instruments with the Wii Remote and Nunchuk sold 2.65 million units worldwide. Wii Fit, released overseas this
fiscal year after the launch in Japan last fiscal year, enjoyed robust sales and sold a total of 16.37 million units this fiscal year and
18.22 million units life-to-date worldwide. These titles contributed to a rise in console software in this fiscal year, as the number of
million-seller titles life-to-date (including third-party publishers) increased to 54 versus 26 the previous fiscal year.
Net sales in the electronic entertainment products division were 1,835.3 billion yen (US$18,728 million) increased by 10.0% from
the previous fiscal year, while sales in the other products division (playing cards, karuta, etc.) were 3.2 billion yen (US$33 million)
decreased by 9.7% from the previous fiscal year.
Revenue and Expenses
Analysis of Operations and Financial Review