Nintendo's Mysterious Caution on FY ’10

Here’s a puzzle: Why does Nintendo expect dramatically fewer software titles to sell for its Wii and DS game machines this year?

This morning, Tokyo time, the company announced results for its fiscal year ended in March that were a little bit better than expected thanks to the strength of the Japanese Yen, turning in 1.8 trillion Yen in revenue ($18 billion, roughly) and 555 billion in operating profit. But for the current year, the company forecast sales to be flat, at 1.8 trillion, which is in line with estimates, but profit of 490 billion Yen, which is short of Street estimates for about 517 billion.

Nintendo says that’s because it will see a sharp decline in software titles for the DS, and software, of course, carries higher profit margins.

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