Iwata: Nintendo May Beat Outlook Due To Wii Success

Speaking in a new interview, Nintendo president Satoru Iwata has indicated an "emerging possibility" for financial results even better than company predictions, following a successful U.S. and Japanese launch for the Wii. In the new interview conducted by news agency Reuters, Iwata is quoted as being particularly pleased that no cannibalization has gone on between the company's DS handheld and the Wii. Analysts were concerned that similar demographics and control methods between the two machines might mean sales of the Wii would eat into the DS' success. However, Iwata specifically commented in reply to this: "Some analysts say the largest rival of the Wii is the DS. But if you take a look at DS sales in the United States in the Thanksgiving week, or DS sales in Japan in the week of the Wii launch, there has been little impact." Nintendo's sales forecasts are overall fixed at 740 billion yen ($643.9 million), with profits at 145 billion yen ($126.2 million) for the financial year ending March 2007, and Iwata now says of the current goals: "We had come up with the current earnings forecasts before we sold even a single unit of the Wii and when we were not so sure about the cannibalisation effect between the Wii and the DS." Presumably, the Wii's brisk Japanese sales start revealed today should further strengthen Iwata's confidence. Thus, he concluded: "Confidence could be too strong a word, but there is an emerging possibility (for higher earnings results)."