For the first time since they released the cultural sensation known as the Wii, Nintendo has reported decreased year-over-year profits for the first half of the fiscal year. In fact, they are down over 50% from last year’s profits for the same period, from $1.1 billion dollars to $772 million over the period of April to September 2009.
Many factors could have contributed to the decline, namely the vast number of Wiis that have all ready been purchased all over the world. While market-saturation was undoubtedly the primary cause, Iwata also noted Nintendo’s lack of quality software, saying, "Wii has stalled. We were unable to continually release strong software, and let the nice mood cool."
Over the first half of fiscal 2008 Nintendo sold 10 million Wii consoles, this year they sold only 5.75 million. Of course the word "only" is used relatively, as its sales have still made it the number one selling home console in all but one of the months so far this fiscal year(sales numbers courtesy of the NPD Group). That month would, of course, be September, where we saw the Playstation 3 ride the combination of a new SKU as well as a price drop to the top of the charts.
Reflecting the first half numbers, Nintendo has modified their projections for fiscal 2009 sales; they are now projecting 20 million consoles sold by the end of March 2010(down from the previously estimated 26 million). Iwata feels they will be able to reach the projection based on the momentum gained from the late-September price drop, from $249.99 to $199.99.
During a season which has seen the Wii dominate sales, and with such quality releases as New Super Mario Bros Wii on the horizon, it’s not a stretch to believe that 15.25 million consoles over the next six months is entirely possible.
