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Nintendo's Profit Rises 72% for Latest Fiscal Year

24 May, 2001 By: Hive News

Japanese videogame companyNintendo Co. reported that big gains from a weaker yen sent profits soaring 72% for the latest fiscal year despite slow sales of its Nintendo 64 game console.

Nintendo said Thursday it expects operating profits to jump more than 40% this fiscal year as it launches its GameCube console Sept. 14 in Japan and Nov. 5 in theUnited States.

Nintendo earned 96.6 billion yen ($806 million) in the year ended March 31, up from 56.1 billion yen the previous year. Revenue fell 13% to 462.5 billion yen ($3.9 billion) from 530.7 billion yen a year ago.

Nintendo earnings received a 66.34 billion yen ($554 million) boost from currency fluctuations. A weaker yen helps boost the earnings of exporters like Nintendo.

Later this year GameCube will face off with Sony PlayStation 2 and Microsoft's new Xbox for console supremacy in the battle of the millennium.

For this fiscal year, Nintendo plans to sell 4 million GameCube machines and 10 million software games for it. Combined sales targets for the Game Boy and Game Boy Advance were set at 23.5million units for the machines and 77.5 million for the software.

Game Boy Advance, a revamped version of the Game Boy portable machine that went on sale earlier this year in Japan, is set to hit U.S. stores June 11.

The company is forecasting group net profits of 80 billion yen ($668 million) on sales of 580 billion yen ($4.8 billion) for fiscal 2001 ending March 2002. It expects operating profits will reach 120 billion yen($1.2 billion).

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