Nintendo: 'We cleaned up this year'

Today, Nintendo's annual financial report was tendered to the press. Amongst the information to hand was the following:

"In less than five months since introduction, the company sold 5.84 million of its new Wii home video game systems globally, virtually every one snapped up immediately by consumers, along with nearly 29 million Wii games. Wii has taken a step toward becoming a cultural phenomenon, appealing widely to both avid and previously disinterested game-playing audiences.

For the fiscal year beginning April 1, 2007, Nintendo projects sales of 14 million Wii systems and 55 million games worldwide."

Well! That's strong talking from the big N for sure. But do they have fair reason to justify their projections? Calling the Wii a 'cultural phenomenon' is no small statement and the article goes on to talk about how dominant the DS has become, too. It seems this is the generation for the first time since the SNES where Nintendo have played their cards right down the line - and so far are winning.

We think that yes, this fiscal year has been one of Nintendo's cultural strongest. They have captured gaming in a new way and it is undeniable that something special is happening. The questions though are there; will it last and if so, how long for? Will the new PS3 and its development prove damaging for Wii in the months to come? Will the competition start to heat up as prices for X360 and PS3 slip down to meet the Wii? Will that even happen?

As far as we can see, if it doesn't happen and prices don't significantly fall for PS3 especially, the 'PS2 effect' of 'lots of games' won't be enough this time around the block. In short, most people already have a PS2 and 'lots of games' if that's who they are. The new breed of gamers behind them don't have the money for a PS3 - in fact I don't have the money for a PS3.

I'd say its check, not check mate. Time will tell, but the ball is well and truely on the court of Sony (and Microsoft!) to see how they can respond to Nintendo's staggering success in the next fiscal year. I would say Vista is a suitable distraction, though ...