economy and politics

Nintendo reports lower profits after falling demand for its old Switch console

Deutsche Bank loses court battle over payment for Postbank acquisition

Nintendo and other game and toy makers make their biggest profits during the holiday shopping season.

ADVERTISING

Nintendo, the Japanese video game maker behind the Super Mario franchise, saw a 60% drop in profits during the first half of its financial year, as demand for its Switch console, now in its eighth year of sales, declined.

Kyoto-based Nintendo Co. reported a profit of 108.7 billion yen (653 million euros) for the period from April to September, as sales fell 34% from a year earlier to 523 billion yen ($3.1 billion).

More than 74% of its sales income They came from abroadaccording to Nintendo, without giving a breakdown in quarterly figures. Global Switch sales during the period fell to 4.7 million machines from 6.8 million units a year earlier.

But Nintendo said Switch sales were still growing and promised to stick to its goal of selling a Switch console to each individualnot just one Switch for each home.

Nintendo maintained its previous projection of a profit of 300 billion yen (1.8 billion euros) for the full fiscal year until March 2025almost 29% less than the previous fiscal year.

It was forecast that annual sales would fall 23% to 1.28 trillion yen (7.7 billion euros).

Reduced sales forecast

Also reduced its sales projection Switch for the fiscal year to 12.5 million units from a previous forecast of selling 13.5 million.

Nintendo and other game and toy makers make their biggest profits during the christmas shopping seasonas well as New Year’s, a holiday celebrated with fanfare in Japan, when children receive cash gifts from their grandparents and other relatives.

Nintendo has not yet announced details about a Switch successor.

Among the best-selling gaming software titles in the fiscal half are Paper Mario RPG, which has sold 1.95 million units since it went on sale in May, and Luigi Mansion 2 HD, which reached almost 1.6 million units in sales.

In total, more than 70 million Switch games were sold during the period, for a total of nine titles that became titles. with sales of one millionincluding products from third-party manufacturers or manufacturers other than Nintendo.

However, that was down from the more than 97 million games sold the previous year. The release of a movie Super Mario Brothers boosted sales in the previous fiscal year, while the absence of such a movie this fiscal year negatively affected the latest results, Nintendo said.

Revenues also fell mobile game deals and IP-related businesses, he said.

Source link