Nintendo Profits Beat Sony and Microsoft

It may sound like bad news for Nintendo, but it’s not as bad as you may think. The company has announced a 78.5 percent decline in operating profit for the last quarter ending June 30, 2005. Its $123 billion operating profit from the same period in 2004 dropped to $33.4 million this year. The decline in profit is contributed to two main factors.

The first is a lack of games released during the quarter. More than a dozen games shipped for the Game Boy Advance in the US, but North America received less than ten major GameCube releases.

The second reason for the decline is attributed to lower sales of the Game Boy Advance and GameCube. GBA only shipped 980,000 units during the quarter, as opposed to 2.3 million last year. Sales of the GameCube dropped sixty percent compared to the same quarter last year.

Although this seems bleak, Nintendo still made a profit which is more than Sony or Microsoft can say. Sony reported a loss of $52.6 million and Microsoft reported a loss of $179 million during the same quarter.

by lindsay
07/29/2005 10:59AM
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