TOKYO – On Thursday, Nintendo, the Japanese gaming company, announced a 43% drop in profits for the fiscal year ending in March. However, the company remains optimistic, expecting a recovery with the release of its upgraded Switch console this June.
Nintendo Co.’s profit for the fiscal year through March totaled 278.8 billion yen ($1.9 billion), down from 490 billion yen the previous fiscal year.
Sales for the year decreased by 30%, amounting to 1.16 trillion yen ($8 billion), compared to the previous 1.67 trillion yen, reported the Kyoto-based creator of popular franchises like Super Mario and Donkey Kong.
Game companies generally experience a decline in fortunes the longer a new console is on the market, as many consumers have already purchased the device. Nonetheless, the release of popular new games can significantly enhance their financial outcomes.
Much anticipation has been building over the rollout of the so-called Switch 2, which goes on sale June 5.
Nintendo said it expects to sell 15 million Switch 2 consoles for the fiscal year through March 2026.
Demand has dwindled for the current Switch, now in its eighth year after its debut. The number of Switch players around the world remains above 128 million people, according to Nintendo.
Nintendo said attractive software was coming for the Switch 2 later this year, including “The Legend of Zelda” games, a Pokemon title and a Kirby game, as well as offerings from outside software companies.
Also adding to the momentum is the opening of a Nintendo store in San Francisco and the Super Nintendo World amusement facility opening in Orlando, both set for this month, according to Nintendo.
Nintendo is projecting a 300 billion yen ($2.1 billion) profit for the fiscal year ending in March next year, a nearly 8% improvement from the fiscal year just ended, on sales of 1.9 trillion yen ($13 billion), up 63% on-year.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
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