Nintendo's profit for 2010 declines 66%

Nintendo's profit for 2010 slumped, despite the fact that the company managed to sell 3.61 million Nintendo 3DS portable systems. The Japanese games company profits plummeted during 2010, with a massive decline of 66% from 2009's fiscal year. As Engadget has reported, Nintendo's Wii sales have dropped between the two years by a quarter, with the console having sold fifteen million units during 2010, compared to the twenty million it sold during 2009. Multiple factors could have contributed to the decline in the sale of the Nintendo Wii, though it is most likely due to the success of both Microsoft's 'Kinect', and Sony's Playstation 'Move' perhiperals.

Nintendo has announced a successor to their Wii console, which is to release in 2012. With the console having sold in huge numbers since its release, the popularity of the successor, known at the time of writing as 'Project Cafe', should be interesting to see. During the fiscal year of 2010, the company made a net profit of $825 million, which is a large drop from their previous successes during 2009. Sales of the Nintendo 3DS went well, but the console does not appear as profitable as previous iterations in the Nintendo DS family.

Other sources give slightly different news as to the company's declining profit margin. According to DigitalSpy, Nintendo profits have nose-dived by 74%. DigitalSpy's article displays only until the end of December 2010, so it is possible that both Engadget and DigitalSpy have reported the falling profits correctly. Both websites may be correct in their reports, as it is possible consumers purchased Nintendo's DSi models towards the end of their lifespan in order to acquire the console at a low price, or as part of a 'bundle deal' at a retailer.

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