(1) Consolidated Statement of Income (April 2009 through June 2009)
compared to the same period of the previous year

Net Sales:	253.4 billion yen	(- 169.8 billion yen)
Operating income:	40.4 billion yen	(- 78.7 billion yen)
Ordinary income:	64.8 billion yen	(- 112 billion yen)
Net income:	42.3 billion yen	(- 64.9 billion yen)

*Note: Amount in parentheses indicate change from the same period in the previous fiscal year

• Net sales: Reasons for decrease
  Primarily, there were fewer software launched that strongly drove Wii hardware sales. Another factor is that the average exchange rates for the U.S. dollar, Euro and other foreign currencies against the Japanese yen became unfavorable due to a stronger yen exchange rate trend. This foreign exchange factor resulted in 42.3 billion yen of negative impact to sales.
• Gross profit ratio:
  The gross profit ratio went down from the same period a year earlier. Primary reason is due to the impact of yen appreciation as the average yen exchange rates during this period became stronger by 7.23 yen per U. S. dollar and 30.86 yen per Euro.
• Selling, general and administrative expenses (SG&A expenses): Reasons for decrease
  Mainly due to the decrease of advertising expenses related to decreased sales
• Operating income ratio:
  Gross profit ratio declined by about six percent versus the previous first quarter. SG&A expenses decreased, however, SG&A expense percentage to net sales rose. Thus, the operating income ratio declined this June quarter compared to the previous June quarter.
• Ordinary income ratio:
  In addition to about 12 percent decline of operating income ratio, foreign exchange gains were 20 billion yen during this period while the gains were 47.8 billion yen a year earlier. Interest income decreased due to the lower yield. For those reasons, ordinary income ratio declined this period compared to the same period a year ago.
• Extraordinary income:
  This income is primarily due to a refund for the penalties of a lawsuit paid in prior years (accounted for as gain on prior periods adjustment) and the reversal of allowance for doubtful accounts because of the decrease of trade accounts receivable balance from the end of last fiscal year-end.
• Extraordinary loss:
  This loss is primarily due to loss on prior periods adjustment. In connection with the accounting method of redeemable points (by Club Nintendo etc.), they were expensed in previous years. Effective from this period, the granted points have been treated as deferred sales until the points are redeemed. The loss is due to this accounting method change.

(2) Consolidated Balance Sheet as of June 30, 2009
(as compared with the end of March 31, 2009)

• Short-term investment securities:
  The main reason for the decrease is the decrease of certificates of deposits (used for the payment of taxes, dividends and procurement etc.).
• Inventories: Reasons for the increase
  Primarily due to the increase of Wii hardware inventory

Supplementary information

<Consolidated sales units during the April to June 2009 period
compared to the previous period>

• Wii:
  During the three-month period ending in June last year, Wii software titles Wii Fit, Mario Kart Wii, and Super Smash Bros. Brawl each had robust worldwide sales since their launch and contributed to the boost in Wii hardware sales. For this three-month period, Wii Fit and Mario Kart Wii continued to sell well overseas, however, there were no consecutive launches of major new titles like the previous first quarter. This resulted in lower sales of Wii hardware as well.
• Nintendo DS:
  While sales of Nintendo DS declined this quarter, Nintendo DSi, released in April this year overseas, is selling well. As for Nintendo DS software, DRAGON QUEST IX: Hoshizora no Mamoribito from SQUARE ENIX was shipped in Japan for a July launch and Pokémon Platinum Version sold well in the U.S. and Europe. However, the overall sales units dropped compared to the previous first quarter.

(3) Consolidated earnings forecast

The earnings forecasts for the six-month period ending September 30, 2009, and the fiscal year ending March 2010 are unchanged from the forecasts in the Consolidated Financial Statements report released on May 7, 2009:

	Six-months ending Sept. 2009	Fiscal year ending Mar. 2010
Net Sales:	700 billion yen	1,800 billion yen
Operating income:	165 billion yen	490 billion yen
Ordinary income:	170 billion yen	500 billion yen
Net income:	100 billion yen	300 billion yen

*Note: Full-year sales unit forecast, estimated exchange rates (1 U.S. dollar = 100 yen, 1 Euro = 130 yen) are unchanged for the first six-month period and full fiscal year.

Supplementary information

During the three-month period ending June last year, major Wii software titles, such as Mario Kart Wii (in Japan, the U.S. and Europe), Wii Fit (in the U.S. and Europe) and Super Smash Bros. Brawl (in Europe), were launched consecutively. In particular, Mario Kart Wii and Wii Fit performed well from launch and contributed to earnings to a large extent. During the three-month period ending in June this year, fewer major titles resulted in the decrease of sales and profits. However, beginning from the second quarter of this fiscal year, major titles will be released consecutively both from Nintendo and third party publishers. No change has been made to forecasts for this fiscal year.

Q & A