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Home World News Washington Post World News Nintendo’s Profits Soar on Switch Machine, Software Sales

Nintendo’s Profits Soar on Switch Machine, Software Sales

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TOKYO – Japanese video game maker Nintendo posted a 34% increase in profits in the first half of its fiscal year on strong sales of products for its Switch console such as “Splatoon 3,” a paint-shooting game, the company said Tuesday.

That prompted the Pokemon and Super Mario game maker to raise its April-March fiscal year earnings forecast to 400 billion yen ($2.7 billion), from an earlier forecast of 340 billion yen ($2 billion) in earnings. .3 billion).

Even the better forecast is below what Nintendo made in the past fiscal year, at 477.7 billion yen.

Entertainment companies received a boost from the pandemic as people tended to stay at home more than go out. That benefit is likely to diminish as coronavirus restrictions ease.

Japanese exporters like Nintendo are also getting a boost from a weaker yen, which increases the value of their overseas earnings when converted to yen. The US dollar, which traded at about 110 Japanese yen a year ago, is now close to 150 yen.

The net profit of Kyoto-based Nintendo Co. was 230.45 billion yen ($1.6 billion) for the six months to September, up from 171.8 billion yen the year before.

Half-year sales were yen 656.97 billion ($4.5 billion), up 5% from yen 624.3 billion.

Nintendo said shortages of computer chips and other components caused by COVID-19-related lockdowns and other disruptions are hurting production. Nintendo Switch sales were down 19% from the previous year to 6.68 million units.

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

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

The Mario Kart and Kirby games, which were released earlier, also sold solidly, as did third-party offerings, resulting in 15 million games sold for the Switch over the six-month period.

Nintendo’s software sales grew 1.6% year-over-year to 95.41 million units. Downloadable online games also performed well.

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

“By continuously working to preload production and select appropriate transportation methods in preparation for the holiday season, we will work to deliver as many consoles as possible to consumers in every region of the world,” the company said in a statement.

In game software, “Bayonetta 3” is slated to release 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 expects to sell 19 million Switch consoles in the current fiscal year. It previously expected to sell 21 million Switch machines. Switch’s cumulative sales around the world have surpassed 114 million machines.

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama





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