Nintendo Releases Q1 Financial Report

Is Nintendo making money while they make the 3DS?

Nintendo has released their financial report for the first quarter of the fiscal year 2011 (April 2010-March 2011). The most interesting tidbit: Nintendo had a negative income for the last three months, losing $291 million USD, due to a 25% drop in sales compared to last year. Here are some other facts:

• Net sales were $2.18 billion USD, down 25.6 percent from last year.
• Nintendo experienced a net loss of $291 million USD over the past three months.
• Total assets are $17.2 billion USD, down 13% from December 2010.
• Expected net sales are $6.3 billion USD through September, and $16.2 billion USD through March ’11, which is down 2.4% from last year.
• Non-game sales, including T-shirts and toys, were $5 million USD.
• Research and development costs were $148 million USD, on track for $592 million USD this year.
• Best-selling DS games: Pokémon HeartGold/SoulSilver (1.69 million worldwide), Tomodachi Collection, Pokémon Platinum (1.91 million worldwide).
• Best-selling Wii games (this three-month period): Super Mario Galaxy 2 (4.09 million worldwide), New Super Mario Bros. Wii (1.1 million worldwide), Wii Fit (3.6 million worldwide), Mario Kart Wii (2 million worldwide), Wii Sports (1.91 million worldwide).
• Recent million-sellers (life-to-date): Pokémon HeartGold/SoulSilver (10.09 million worldwide), Super Mario Galaxy 2 (4.09 million worldwide), Wii Sports Resort (19.16 million worldwide), Wii Sports (66.19 million worlwide), Wii Fit Plus (14.52 million worldwide), New Super Mario Bros. Wii (15.81 million worldwide). Wii Sports is now the best-selling videogame in history by over 20 million units.
• DS sales this period: 3,150,000 hardware units sold, of which 1,000,000 were DSi and 1,570,000 were DSi XL. 22.42 million software units were sold, 8% of which were new releases.
• Wii sales this period: 3,040,000 hardware units sold, along with 28,170,000 software units, 4% of which were new releases.
• DS sales life-to-date: 132,040,000 hardware units sold, 18,820,000 of which were DSi and 3,650,000 were DSi XL. 740,930,000 software units were sold, 6% of which were new releases.
• Wii sales life-to-date: 73,970,000 hardware units sold, along with 573,000,000 software units, 4% of which were new releases.

Nintendo seems to be experiencing a minor dip in their sales, but my guess is it’s only temporary. Once the 3DS is released, sales should skyrocket back up, as long as they market it properly.