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Nintendo Reports Trailing Profit In 1st Quarter As Sales Of Aging Switch Game Console Slide
TOKYO — Nintendo announced a 55% reduction in profit in the April-June quarter, as sales of both equipment and game software fell compared to the previous year.
Game machine sales typically decline after they hit the market. The Switch is in its eighth year of business, with more than 140 million units sold.
Nintendo | Reuters
Nintendo Reports Trailing Profit As Sales Of Aging Switch Game Console Slide
Nintendo Co., owner of the Super Mario and Pokemon franchises, reported a profit of 80.95 billion yen ($543 million) in the fourth quarter, down from 181 billion yen the previous year. Quarterly sales fell 46.5%, at 246.6 billion yen ($1.7 billion).
The company did not provide any fresh details on the promised Switch successor. Earlier this year, its president, Shuntaro Furukawa, said an announcement would be made before April 2025.
There are an estimated 128 million Switch players worldwide. Quarterly Switch machine sales plummeted 46% year over year to 2.1 million from 3.9 million.
Nintendo | Polygon Image
Nintendo stated that the losses in sales and profit reflected particularly excellent results last year when they received a significant lift from a Super Mario Brothers movie. Nintendo emphasized that its latest profits and sales, which were in line with analysts’ expectations, were equivalent to what it earned between January and March.
Another Super Mario film is planned for 2026 since Nintendo relies on its valuable intellectual property to keep its operations running.
The latest installments of Mario Party, Donkey Kong, and Zelda are expected in the coming months.
“Other software publishers also plan to release a wide variety of titles, and we will strive to invigorate the platform by continually introducing new titles in addition to the existing titles,” the Japanese company added.
The firm committed to continuing to entice consumers to its games. The Museum will open later this year in Kyoto, Japan’s historic city and headquarters. A store will open in San Francisco’s Union Square next year.
Stocks fell 2.3% in Tokyo trading just before earnings were announced. The Nikkei index fell 5.8% on Friday.
Nintendo | CNET Image
The stock has recently declined as the US dollar has weakened against the yen, trading at approximately 149 yen. It had previously cost over 160 yen. A weak yen benefits exporters like Nintendo because it increases the value of their international earnings.
Nintendo maintained its earnings prediction for the fiscal year through March at 300 billion yen ($2 billion).
SOURCE | AP
