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Nintendo’s profits soar on Switch, software sales


Nintendo's profits soar on Switch, software sales

A man advertises a Nintendo Switch at an electronics retail chain in Tokyo on October 13, 2021. Japanese video game maker Nintendo recorded a 34-year increase in first-half profit of its fiscal year. % on Tuesday, November 8, 2022, because its products Switch Console like “Splatoon 3”, a paintball game, sold well. Source: AP Photo / Koji Sasahara

Japanese video game maker Nintendo recorded a 34% increase in profits in the first half of the fiscal year thanks to strong sales of Switch console products such as “Splatoon 3”, a video game console. paintball gun, the company said Tuesday.

That prompted the Pokemon and Super Mario game maker to raise its profit forecast for the April-March financial year to 400 billion yen ($2.7 billion), from a previous forecast of 340 billion yen (US$2.7 billion). 2.3 billion USD).

Even better forecasts are lower than what Nintendo earned in the last financial year, at 477.7 billion yen.

Entertainment companies have received a boost from the pandemic because people are more inclined to stay at home, instead of going out. That advantage is likely to wear off as coronavirus restrictions get easier.

Japanese exporters like Nintendo are also getting a boost from the weaker yen, which has lifted the value of their overseas earnings when converted to the yen. The US dollar, which was trading at around 110 Japanese yen a year ago, is now near 150 yen.

Net profit at Nintendo Co. based in Kyoto totaled 230.45 billion yen ($1.6 billion) in the six months to September, up from 171.8 billion yen the year before.

First half revenue came in at 656.97 billion yen ($4.5 billion), up 5% from 624.3 billion yen.

Nintendo said shortages of computer chips and other components due to COVID-19-related lockdowns and other disruptions impacted production. Nintendo Switch sales fell 19% year over year to 6.68 million units.

Other Japanese companies such as Sony Corp. and Toyota Motor Corp. also affected by chip shortage.

Other popular Nintendo game software released in the past six months include “Nintendo Switch Sports,” which sold 6.15 million copies, and “Mario Strikers: Battle League,” with 2.17 million copies.

Mario Kart and Kirby games, which were released earlier, also sold very quickly, as did offerings from external publishers, resulting in 15 million best-selling games for the Switch in a six-month period.

Nintendo’s software sales grew 1.6 percent year-over-year to 95.41 million units. It says downloadable online games also work fine.

Nintendo said the crisis situation in chips and other parts is likely to gradually improve in the coming months. Christmas and the New Year holidays are important times for Nintendo’s business.

“By continuously working on preload production and selecting appropriate shipping methods to prepare for holiday seasonWe will work to make as many consoles as possible available to consumers in every region of the world,” the company said in a statement.

In game software, “Bayonetta 3” was released in October, followed by “Pokémon Scarlet” and “Pokémon Violet” in November, “Fire Emblem Engage” in January 2023, and “Kirby’s Return to Dream Land Deluxe” in February 2023, according to Nintendo.

Nintendo is expected to sell 19 million Switch consoles for now financial year. Before that, it was expected to sell 21 million Switch units. The Switch’s cumulative sales worldwide have reached 114 million units.

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