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Nintendo Wary on Outlook Amid Game Player Battle

Time: 04:39 EST/09:39 GMT | News Source: Associated Press | Posted By: Alex Harris

Japanese video game giant Nintendo, maker of the GameCube player, said on Thursday its profits rose last business year but offered a wary outlook amid a price war with Sony's PlayStation 2 and Microsoft's Xbox. Nintendo, known for its Pokemon character and handheld Game Boy players, said group net profit for the year that ended on March 31 was $855.8 million, up 10.2 percent. Group sales were 554.89 billion yen, up 20 percent.

Seventy percent of sales were overseas, which gave the 2001/02 earnings an added bonus because a favorable exchange rate meant they generated more yen when repatriated. The results, announced after the Tokyo market closed, were close to what Nintendo projected last month when it revised up its 2001/02 group net profit forecast to 110 billion yen from 80 billion yen. Analysts warn that Nintendo could see sales of its GameCube console suffer this year as Sony Corp and newcomer Microsoft Corp raise the heat on prices.

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