Nintendo Year End Financials

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Nintendo has continued to execute its strategy of expanding the gaming audience by broadening the definition of video games and so on. A wider variety of games from Nintendo and third-party publishers have attracted both novice and skilled game players, causing sales of Nintendo
DS and Wii to continue to grow. As a result, Nintendo achieved record results in both net sales and
profit. Net sales were 1,838.6 billion yen, including overseas sales of 1,609.6 billion yen, which accounted for 87.5% of total sales. Operating income was 555.2 billion yen, income before income taxes and extraordinary items was 448.6 billion yen, though foreign-exchange loss was 133.9 billion yen caused by appreciation of the yen, and net income was 279 billion yen.

With respect to sales by business category within the handheld device segment of the electronic
entertainment products division, worldwide unit sales of Nintendo DS hardware were 31.18 million units during this fiscal year and have reached 101.78 million units life-to-date. Nintendo DS continued to enjoy robust sales abroad while Nintendo DSi was released on November 1, 2008 in Japan. Sales of Nintendo DS exceeded 100 million units faster than any console or handheld video game hardware in history.

Regarding Nintendo DS software sales, Pokémon Platinum Version sold 3.75 million units and Kirby Super Star Ultra sold 2.36 million units, despite the fact that they were not released in Europe. In addition, Rhythm Heaven and Wagamama Fashion Girls Mode were released in Japan during this fiscal year and made a strong contribution to sales in the category. Long-term selling titles such as Brain age: Train Your Brain in Minutes a Day! and the sequel version Brain Age 2: More Training in Minutes a Day! reached a total of 7.31 million units during this fiscal year and 31.12 million units life-to-date. As a result, the number of million-seller titles life-to-date (including third-party publishers) increased from 57 to 91 compared with last year.

In the console business, Wii hardware enjoyed robust sales abroad and achieved worldwide sales of 25.95 million units this year and has reached 50.39 million units life-to-date. Wii became the fastest home video game hardware in history to reach 50 million unit sales. Regarding Wii software, Mario Kart Wii, which allows players to feel as if they were actually driving with a Wii Wheel controller sold 15.4 million units. Animal Crossing: City Folk, which allows players to play and chat with their distant friends by using Wii Speak, sold 3.38 million units, and Wii Music, which allows players to enjoy playing simulated musical instruments easily with Wii Remote and Nunchuk sold 2.65 million units worldwide.Wii Fit, which was released overseas this fiscal year after the launch in Japan last fiscal year, enjoyed robust sales and sold a total of 16.37 million units this fiscal year and 18.22 million units life-to-date worldwide. These titles contributed to a rise in console software in this fiscal year, as the number of million-seller titles life-to-date (including third-party publishers) increased to 54 versus 26 last year.

Net sales in the electronic entertainment products division were 1,835.3 billion yen, while sales in the
other products division (playing cards, karuta, etc.) were 3.2 billion yen.

With respect to Nintendo DS, Nintendo DSi, which can be customized for each individual’s use and is equipped with memory that allows players to download new software, is released abroad. Nintendo is developing software, such as The Legend of Zelda: Spirit Tracks (tentative name) which will appeal to a wider age group of people, and will launch in the latter half of this calendar year. In addition, Nintendo’s strategy is to accelerate current sales momentum by changing consumers’ attitudes from must-have for every family to must-have for everyone and to enrich the owners’ daily lives by providing information service at cultural facilities, commercial establishments and so on.

Regarding Wii, Nintendo will launch Wii Sports Resort worldwide. Attaching the Wii Motion Plus
accessory to the bottom of the Wii Remote will allow Wii Sports Resort players to feel as if they were actually playing sports more vividly than ever before. Through the internet, Nintendo has been offering the Wii Channel, with various information about weather, news, shopping and so on. To expand the service, Nintendo begins to offer a content providing service called the Wii-no-Ma Channel. This variety of offerings will be useful in people’s daily lives as Nintendo attempts to put smiles on more faces.

With regard to consolidated performance forecasts for the fiscal year ending March 31, 2010, net sales are projected to reach 1,800 billion yen, operating income 490 billion yen, income before income taxes and extraordinary items 500 billion yen, and net income 300 billion yen. Unit sales of the core products used for the forecast are listed on page 23. Exchange rates used for the forecast are 100 yen per U.S. dollar and 130 yen per Euro.

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