Nintendo’s profit drops 60 percent, company downgrades outlook for Switch consoles

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: ČTK

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Golden Brokers Review

Golden Brokers Limited was founded in 2018, it is...

Siemens’ Quarterly Profit Beats Estimates as the Company Benefits from AI-Related Demand

German industrial conglomerate Siemens increased its profit from industrial...

Sell Stop Orders: How They Work, When They Trigger and Where They Fail

A sell stop order allows investors to automatically sell an asset...

German Authority Investigates PayPal Over Possible Restriction of Competition

The online payment system PayPal may be engaging in...

Airbnb Could Earn More From the Same Booking

Airbnb plans to bring car rentals and partner services directly into its platform. With AI customer support reducing overheads, the company aims to earn higher profits from existing customer bookings.

Over-the-Counter Markets: How OTC Trading Works Outside Centralized Exchanges

Over-the-counter (OTC) trading allows investors, financial institutions, and companies...

Maersk’s profits grew, but a return via Suez may squeeze margins [1]

Maersk posted an operating profit of USD 3.3 billion...

Shooting Star Candlestick: How to Read It Without Trading the Shape Alone

A shooting star candlestick can warn that an upward...
spot_img