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Nintendo needs Switch to be its ‘earnings driver’
Quarterly profit above projections but anaemic sales highlight how important it is for the company’s new Switch console to succeed
Tokyo — Nintendo reported quarterly profit above projections and increased its outlook for the year, but anaemic sales highlighted how important it is for the company’s new Switch console to succeed. A weaker yen and brisk holiday sales helped the Kyoto-based game maker deliver profit of ¥64.7bn ($565m) for the period ending in December, exceeding analysts’ average projection for ¥20.5bn. For the fiscal year, profit would be ¥90bn instead of the previously forecast ¥50bn, Nintendo said on Tuesday. Still, revenue for the quarter fell 21% to ¥174.3bn, while the full-year outlook was kept at ¥470bn. The company’s 3DS handheld device, which had helped the company sustain earnings, is starting to sputter. Super Mario Run, Nintendo’s first game for smartphones, had 78-million downloads, yet only 5% of those opted to pay $10 for the full version. The company also revealed that Animal Crossing, an upcoming smartphone game, would be delayed. All of this means that there is little room for mi...
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