Japanese video game company Nintendo’s net profit fell 60 percent year-on-year to 108.7 billion yen (roughly CZK 16.6 billion) in the first half of the fiscal year, the company said in a report today. Nintendo is now facing a drop in demand for its Switch consoles, which have been on the market for more than seven years. The company today downgraded some full-year forecasts, including its sales estimate for Switch consoles.
A huge drop
The company’s total sales fell 34 percent year-on-year to 523 billion yen in the first fiscal half ended Sept. 30. Worldwide sales of Switch consoles fell to 4.7 million devices from 6.8 million a year ago.
Nintendo now expects to sell 12.5 million Switch consoles in the full fiscal year, while it previously estimated full-year sales at 13.5 million devices. The company today lowered its full-year sales estimate to 1.28 trillion yen from the previously projected 1.35 trillion. As a result, sales are expected to fall more than 23 percent from the previous year.
Lower estimate
The company cut its full-year operating profit estimate to 360 billion yen from the previously projected 400 billion yen. However, it left its net profit estimate unchanged, continuing to expect it to fall nearly 39 percent year-on-year to 300 billion yen.
Nintendo launched the Switch console in March 2017. Since then, it has sold more than 146 million units, but demand is waning as the console ages. The company said in the spring that it would introduce a successor to the Switch console by March next year.
source: ÄŒTK
