Nintendo on Friday reported Sales and profit The collapsed in the corporate's first fiscal quarter as sales of the aging Switch console declined.
Here's how Nintendo performed in comparison with LSEG estimates in its first fiscal quarter, which ended June 30:
- Revenue: 246.6 billion Japanese yen (1.65 billion US dollars) in comparison with the expected 289.61 billion yen.
- Net profit: 80.9 billion Japanese yen in comparison with expected 70.73 billion yen.
Net sales decreased 46.5% year-on-year, while net profit decreased 55.3%.
Nintendo sold 2.1 million units of its flagship Switch console, 46% lower than the previous 12 months.
Investors are eagerly awaiting news on a successor to the Nintendo Switch console to revive its gaming business. The company had previously said that the subsequent device could be announced in the present fiscal 12 months, which ends in March 2025.
Nintendo had previously announced that it will sell 13.5 million copies of the present Switch console model during this era. The company stuck to this forecast on Friday.
The Switch is now over seven years old and is the corporate's second most successful console when it comes to sales after the Nintendo DS. Over the years, Nintendo has continually upgraded the Switch with a greater display and capitalized on the recognition of games featuring well-known characters like Mario and Zelda, which has helped to sustain sales over the long run.
However, that effect appears to have worn off. Nintendo didn’t release a single blockbuster game within the June quarter and the corporate's software sales fell 41% year-on-year to 30.64 million units.
The Japanese gaming giant has announced a series of games featuring well-known characters corresponding to Mario and Donkey Kong which can be set to be released in the approaching months.
With console sales declining, Nintendo has also sought to license its mental property to be used in movies and theme parks. The company is working on an animated Super Mario film, produced by Illumination, set for release in 2026. Nintendo hopes this may proceed to draw users to its video games.
Despite this development, sales within the mobile devices and mental property business fell 54% year-on-year to 14.7 billion yen.
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