Battered by declining sales of its Wii video game console, Nintendo Co. announced it would introduce a new, ultra-powerful console in 2012. The announcement came as Nintendo posted double-digit declines in sales and profit for its fiscal year ended March 31.
The Japanese game company said Monday that its revenue slumped 29% last year to just more than 1 trillion yen, or roughly $12.4 billion. Profit slid 66% to 77.6 billion yen, or $948 million. The results were much lower than Nintendo had forecast: Last May it said it expected sales of 1.4 trillion yen and net income of 200 billion yen.
Losses due to the strong yen, which meant sales outside Japan converted to fewer yen, accounted for $604 million of Nintendo's annual loss.
Core sales also were to blame. After a massive wave of popularity, sales of the Wii fell 25% to just over 15 million units last fiscal year, compared with 20.5 million a year earlier. Nintendo's DS series of hand-held consoles also took a hit. Last fiscal year, DS sales dropped 22% to 21.1 million units — including 3.6 million units of Nintendo's 3DS console, which was introduced in late March. The year before, Nintendo sold 27.1 million DS consoles.