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Gamecube Price Cuts Slam Nintendo's Bottom Line
Nintendo reported operating results for the last six months, and they vividly show the impact of the company's competition with Sony and Microsoft.
While revenue dropped eight percent, profits fell substantially -- by 45 percent. The disparity between the two numbers indicates the extent to which the company's Gamecube price cuts have hurt its bottom line. Net profit came to 18.97 billion yen ($155 million) for the six months through September, down from 34.35 billion yen a year ago, on 208 billion yen ($1.7 billion) in revenues. Other items of note:
In the first half of the fiscal year, Nintendo sold 2.88 million GameCube machines, of which 88 percent were sold overseas.
A total of 6.68 million GameCubes have been sold since the launch last November, compared to 41.6 million PS2s and 3.9 million Xbox consoles.
20.2 million Gamecube titles were sold during the period.
Game Boy Advance sales sank by 60% in Japan (1.08 million units). Overseas, GBA sales declined by 18% to 4.71 million units.
Sales of GBA games rose 13%, reaching 21.4 million units.