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Nintendo Continues To Profit

Nintendo disclosed earlier today that its quarterly profits more than doubled as demand for its Game Boy Advance soared and GameCube console sales increased by about eight-fold. Though the majority of its gain clearly was derived from the sales of Game Boy Advance software which was up a whopping 70% during the April-June period.

"We saw a 13 percentage point improvement in operating margin, because software sales were strong and we didn't have GameCube inventory costs that we had last year," said Nintendo Senior Managing Director Yoshihiro Mori.

In the numbers game, Nintendo's operating profit for the three months ending June 30th totalled 17.47 billion yen ($157.5 million) versus the 7.25 billion yen earned a year earlier.

GameCube sales also accounted for the biggest change in the past year as Nintendo sold 650,000 GameCube's for the quarter as opposed to a mere 80,000 units for the same period one year ago. And GameCube software sales have benefited from the larger installed base, getting a 20% boost in sales to about 7.4 million titles in the April-June period.

"At the moment, there are no serious concerns for Nintendo's business," said Hiroshi Kamide, analyst at KBC Securities. Clearly, Nintendo still has the muscle to make money in the industry. The question is can they improve their brand identity in the future with the impending launch of the Nintendo DS and the eventual launch of their next console the Revolution?

We'll be keeping an eye on them, that's for certain.