By Vineetha Menon
Tokyo-based gaming giant sees 66% fall in profits in dismal first quarter earnings
Nintendo’s profits have taken a steep 66% fall this quarter, which the company has blamed on crawling demand for its Wii gaming consoles.
Its operating profit for the first quarter of 2009 came to 40.4 billion yen ($426 million), against a 119.2 billion yen profit for the same quarter in 2008.
Nintendo had so far managed to ride out the economic rollercoaster but slowing demand for the Wii and exchange rate fluctuations have dragged the Tokyo-based gaming giant down. Sony also put up a 25.7 billion yen loss in its first quarter results (ending June 30th) earlier this year, while last week Microsoft announced a 17% decline in revenue to reach $13.10 billion for its fourth quarter (ending June 30th).
Despite bleak quarterly financial results, Nintendo will not be making changes to its full-year forecast, standing by its projections of a 12% decline to reach 490 billion yen. It’s expected to be Nintendo’s first annual loss in four years.