Vladimír Urbánek (Kurzy.cz)
World markets  |  January 30, 2013 10:24:58

Nintendo raises profit outlook, weakening yen helps overcome the decline in sales

World leader in the production of video game consoles, the Japanese company Nintendo, raised its profit outlook for this year, when the effect of a declining yen makes up for the drop in sales.

Net income for the fiscal year ended at the end of March this year should grow annually more than doubled to 14 mld.JPY compared the resulting market expected only a slight improvement on the approximately 6.6 mld.JPY. While still in October last year, the company reduced its earnings estimates by as much as 70%.
Company management while reducing estimates for the development of sales of its products. The company expects to sell about 4 million Wii game consoles for this fiscal year compared to the October estimate of 5.5 million devices. 3DS console sales should reach 15 million units compared to 17.5 million previously estimated.

The Japanese currency has weakened over the last month against the U.S. dollar by as much as 5%, which increased the foreign income of the company.

According to statistics from the NPD Group, sales of gaming consoles, the necessary software and accessories in the U.S. in December declined by 22% to 3.21 mld.USD. This software sales declined by 26% to 1.54 mld.USD, console sales alone fell by 20% to 1.07 mld.USD.
Sales for the full year 2012 in the USA declined by 22% to 13.3 mld.USD.
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