The net profit of the Japanese video game company Nintendo fell 59.9% between April and September, to 108,658 million yen (655.5 million euros), mainly due to the reduction in sales of Switch platform consoles .
The operating profit of the company based in Kyoto, western Japan, fell 56.6% in that period, the first half of its fiscal year, to 121,513 million yen (733 million euros), according to the financial report published today.
The document also reveals that sales fell 34.3%, to 523,299 million yen (3,156 million euros).
Given the results known this Tuesday, The Japanese company has reduced some forecasts for its 2024/25 financial yearcounting on even more difficult months than expected until the launch of the successor to its Switch console.
For the year ending at the end of March 2025, the group has revised downwards its operating profit targets, which are now expected to decline by 32%, as well as sales (-23%).
Nintendo forecasts annual net profit of 300 billion yen (1.8 billion euros), which would mean a drop of 39% year-on-year.
The world of video games (and investors) remain attentive to the slightest indications about the console that will succeed Switch, and Nintendo did not reveal until last May that an announcement would be made in this regard at the end of March 2025.
“It is difficult to precisely determine Nintendo’s timeline” regarding the Switch’s successor, commented Takeshi Koyama, in a recent Mizuho Securities note.
The video game giant is “focusing on sales of its current Switch console in 2024,” especially during the Christmas period, he added.
Several analysts also expect a launch between March and June 2025, which would allow Nintendo to raise the bar for the 2025/26 financial year, which will begin on April 1.
The Switch, launched in March 2017 and sold more than 146 million unitsAccording to Nintendo’s latest figures, it will have already been eight years old, surpassing the brand’s previous consoles in terms of longevity.
Recognizing that sales of consoles (-31% in one year) and games (-27.6%) were “below initial expectations” in the first half (April-September), the Kyoto-based company also reduced its Switch sales target for the entire year: 12.5 million units, compared to the previous forecast of 13.5 million.
While we wait for the next generation of consoles, The company hopes to stem the inevitable decline in sales with regular releases of new games in its historical series. like him The Legend of Zelda: Echoes of Wisdom and S.Super Mario Party Jamboreein recent weeks, or Mario and Luigi: The Epic of Brotherhoodwhich goes on sale Thursday.
Source: Observadora
