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Nintendo’s operating profit is down from 16.47 billion yet to 3.75 billion yen. Nintendo has put the results down to low margins on hardware, together with high development costs. Strong sales of the DS have not helped the situation as much as you might have expected. Nintendo has shipped over 1.38 million units in the quarter, but the company makes very little profit on each unit. The DS has had a negative impact on GBA hardware sales, with only 980,000 units sold compared to 2.32 million in the same period the previous year, and the GameCube also slumped with sales of only 260,000 units.
Nintendo will be hoping for a strong showing from The Legend of Zelda: Twilight Princess, as well as a boost in GBA game sales when the Game Boy Micro is released later this year. Nintendo is still expecting full year operating profits to rise 3.1 percent to 115 billion yen.
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