With strong sales of the DS, a weak Yen, and optimistic expectations for the launch of the Wii, Nintendo announced on Tuesday that it is increasing its annual profit expectations for the 2006/2007 fiscal year.
Backing up statements made earlier this year by Nintendo of America's President, Reggie Fils-Aime, that Nintendo will be profitable with the Wii from day one, the forecast shows a 20.5 percent increase in profits from earlier projections for the year.
Nintendo's optimism rests largely on continued strength of their portable gaming devices, including an 18 percent increase in projected sales of the Nintendo DS following a widely successful launch of the DS Lite, and a 9 percent increase in DS game sales. Even the aging Gameboy Advance still seems to have untapped life left, as Nintendo has increased its earlier projections by 32 percent.
According to Reuters, "The company now expects a group net profit of 100 billion yen ($850 million) in the year ending March 31, up from its earlier estimate of 83 billion yen. It reported a profit of 98.4 billion last year."