If anyone has had experience reading fiscal reports, or anything of the like you'll know that figures tend to be abbreviated. That's usually because it takes up a lot of space to write out all those zeros. Generally, the company will write out something like: (Thousand Dollars) — 3,000…and if you multiply those two together, you get $3,000,000.
Nintendo had to do something like that in their report. Specifically with their net sales numbers. Instead of abbreviating with a thousand dollars it was with 'millions' of yen. The equation reads like this: (Million Yen) — 1,838,622…Ok, all you math scholars out there, what does that equal to?
1.838 Trillion Yen(bold for emphasis)
Fiscal reports are incredibly boring, unless you have some kind of creepy love affair with money and numbers. I read through the report and picked out some interesting stats to share and what they could mean for the future of Nintendo. If you'd like to read the entire report,click here.
Probably the first big stat that jumped out to me, besides their net sales was the forecast for next year's report. According to the 2010 forecast, Nintendo's net sales will decrease by 2.1% or about 39 billion yen. Of course, a lot of times the forecasts are lowered so they can later brag about how they performed better than anticipated.
Then later on in the forecast, they predict that they're net income will increase. The reason for this is probably due to the lowering of production costs. This is a sign that a potential price drop could be in the foreseeable future.
Wii Unit Sales For The 2009 Fiscal Year: 25.95 Million Units Sold (50.39 Units Sold To Date)
Scrolling further down the fiscal report, their Fixed Assets really jumped out. Specifically under theProperty, plant, and equipmentcategory. Nintendo looks to be expanding their physical presence in the world. Nintendo's assets through land increased by nearly 12 billion yen. Even more staggering was their 'construction in progress' assets. Nintendo must be constructing some massive expansions as their assets from construction in progress went from 292 million yen to 3.4 billion yen. It's easily their largest jump in the asset department.
If you're looking for a job, Nintendo dramatically increased their employee's benefits. Employee's retirement and severance benefits jumped from 715 million yen to 5.9 billion yen.
There were stats for third party software sales in the report as well. What is most interesting about these figures is that third party sales increased in every region around the world, except Japan where it decreased somewhere around 100 million yen.
Finally, two of the most interesting numbers were found down near the bottom of the report. While most companies are having to re-structure (a.k.a laying off and firing employees), Nintendo increased their work force. Expenses for employees increased by about 40 million yen last year.
The juiciest bit of news from the report is Nintendo's increase in expenses for theirResearch and Development. Expenses for R&D increased by 50 million yen and the 2010 forecast looks to increase by 3 million yen. Wonder what Nintendo is creating, that they need all that money for?