Nintendo 2007 net, operating profits jump

Revenues up on sales of Wii, DS consoles

By Gavin J. Blair
hr/photos/stylus/24073-wii_boxes341x182.jpg

(Getty Images photo)

TOKYO -- Nintendo more than doubled its operating profit to a record 487.2 billion yen ($4.7 billion) in the year ending March 31 on the back of booming global sales of its Wii and DS game consoles, the company said Thursday.

Operating profit was up 115% from the previous year's figure of 226 billion yen. Net profit jumped 47.7% to 257.3 billion yen on sales of 1.6 trillion yen, up 73%. All the figures represent new record highs for the Kyoto-based game specialist.

In addition to comprehensively outselling rival consoles from Microsoft and Sony, Nintendo has benefited from the fact that many of its top-selling software titles such as "Wii Fit" and "Smash Bros," are in-house productions.

Games like "Wii Fit," which launches May 19 in the U.S., and a host of educational titles for the DS, have broadened the consoles' appeal outside the traditional gamers demographic to attract women and older casual players.

Nintendo president Satoru Iwata said that the company is planning to increase production of the Wii console in the summer to 2.4 million units a month from the current 1.8 million, to keep up with continuing high global demand.

Nintendo 2007 net, operating profits jump

Revenues up on sales of Wii, DS consoles

By Gavin J. Blair
hr/photos/stylus/24073-wii_boxes341x182.jpg

(Getty Images photo)

TOKYO -- Nintendo more than doubled its operating profit to a record 487.2 billion yen ($4.7 billion) in the year ending March 31 on the back of booming global sales of its Wii and DS game consoles, the company said Thursday.

Operating profit was up 115% from the previous year's figure of 226 billion yen. Net profit jumped 47.7% to 257.3 billion yen on sales of 1.6 trillion yen, up 73%. All the figures represent new record highs for the Kyoto-based game specialist.

In addition to comprehensively outselling rival consoles from Microsoft and Sony, Nintendo has benefited from the fact that many of its top-selling software titles such as "Wii Fit" and "Smash Bros," are in-house productions.

Games like "Wii Fit," which launches May 19 in the U.S., and a host of educational titles for the DS, have broadened the consoles' appeal outside the traditional gamers demographic to attract women and older casual players.

Nintendo president Satoru Iwata said that the company is planning to increase production of the Wii console in the summer to 2.4 million units a month from the current 1.8 million, to keep up with continuing high global demand.

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DENVER -- New figures from NPD Group suggest that the Amazon DRM-free digital music service is doing more to grow the overall digital music market as opposed to simply stealing customers from iTunes.

The research group says only 10% of Amazon customers had previously bought music from Apple's iTunes service. While many tagged the Amazon service as an "iTunes killer" when it first launched, the music industry's hope all along was never to cannibalize iTunes sales but rather encourage new digital buyers. NPD's data suggest exactly that is happening.

"The fact that Amazon's early growth does not appear to be at the expense of Apple iTunes is a healthy indication that the digital music customer pool can expand into new consumer groups who have not yet joined the iTunes community," said NPD analyst Russ Crupnick in a statement.

NPD says Amazon is now second only to iTunes in the a la carte digital download category (for those keeping score). The company did not disclose how many users Amazon has attracted in total, however it did say iTunes volume is 10 times that of Amazon.

Some interesting demographic breakdown has emerged between the two services as well. NPD says 84% of Amazon customers are male, compared to 44% of iTunes, but only 3% of Amazon customers were teens, compared to iTunes' 18% (the latter attributed primarily to the popularity of iTunes gift cards.)

NPD says Amazon's growth is likely more due to existing Amazon customers adopting the new service rather than due its lower pricing or DRM-free policies.

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