Nintendo profit falls as Switch sales fade


A screen displaying the characters from the Animal Crossing series video game at a Nintendo store in Tokyo. - AFP

TOKYO: Japan's Nintendo Co Ltd said on Thursday that sales of its Switch console fell 12% in the April-June quarter, in a sign that demand for the hit device may be fading in its fifth year on the market.

Investors are watching gaming firms closely for signs of a tail off in the sales boom during the COVID-19 pandemic. Nintendo is highly dependent on the cyclical console business, with devices traditionally peaking around the fifth year.

Sony Corp said on Wednesday sales of its new PlayStation 5 were robust, helping it post a record profit during the quarter.

Nintendo, which saw sales of Switch Lite units more than halve to 1.14 million, maintained its full-year Switch hardware forecast at 25.5 million units. It sold 4.45 million units of its Switch console, including the Lite, in the latest quarter.

The Kyoto-based games maker is hoping to revive Switch sales momentum with a new $349.99 Nintendo Switch OLED model launching on Oct. 8. It is also relying on a pipeline of popular games including "WarioWare: Get It Together" and remakes of Pokemon titles, to boost earnings.

The creator of Super Mario and Animal Crossing posted a 17% fall in first-quarter operating profit to 119.8 billion yen ($1.09 billion), missing the forecast of 129.3 billion yen by nine analysts, Refinitiv Eikon data showed.

It stuck with its full-year profit forecast of 500 billion yen, lower than an average prediction for 623.5 billion yen from 19 analysts, according to Refinitiv. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Nintendo , Animal Crossing , Switch

   

Next In Business News

Malaysia's DuitNow, Singapore's PayNow to link in 2022
Asian shares creep higher, oil surges to 3-year peak
Govt remains committed to carbon neutral Malaysia by 2050 target
Axiata to dispose of 5% stake in XL
12MP: E&E to contribute RM120b to GDP by 2025
12MP: Digital economy to contribute 25.5% to GDP by 2025
Telcos weigh on FBM KLCI
OCBC Bank rolls out solar panel financing plan for residential homes
12MP: Investments in global services set to reach RM89bil in 2025
12th Malaysia Plan: GDP growth of 4.5% to 5.5%

Stories You'll Enjoy


Vouchers