For the first time in six years, Nintendo is recording its first decline in profit.
In the six months ending September 2009, Nintendo reports that sales and income were "adversely affected by the appreciation of the yen and the price cut on 'Wii' hardware." During that same period, net sales were down 34.5 percent compared with the same period last year. Net income was down 53.4 percent from the same period last year as well — from 144.828 billion yen to 69.492 billion yen in the period ending September 2009.
Nintendo also states that "With respect to 'Wii', software titles which briskly drive hardware sales were not consistently launched in the first half of the year." Selling 5.75 million machines, Nintendo's Wii sales were down 10.1 million units compared to the same period in 2008.
The company did point out that this holiday season has a strong software line-up for the home console.