Nintendo Profit Outlook Slashed By High Yen
Japanese gaming giant Nintendo cut its annual profit outlook by approximately a third, with the company falling short of expectations for the second quarter in a row.
The Kyoto-based video game company reported revenues of $718 million and a net income of $602 million.
This fell short of analysts’ predictions, which pegged the company’s revenues at $788 million.
While these numbers fall far short of last year’s Q4 results, it’s worth noting that Nintendo didn’t release any major software or hardware hits during this period.
The company cited stronger-than-expected yen in foreign currency and weak demand for their Wii-U consoles as the primary causes for the weak quarter, with the latter expected to reach 800,000 annual sales by the end of the fiscal year.
Nintendo’s recent move into the mobile gaming sector saw them make some gains with Pokémon Go adding $115 million in profits as well as generated an increase in sales of other Pokémon products and 3DS hardware.
Their Amibo merchandise also continues to perform strongly, with the company shipping 3.8 million figures and 1.7 million cards over the quarter.
The earnings report also shed light on the expectations the company has for their next major home console – the Nintendo Switch.
According to Tatsumi Kimishima, Nintendo’s chief executive officer, the company plans to ship 2 million Switch consoles globally by the end of its launch window in March.
Nintendo’s stock rose 1.68 percent in after-hours trading following the release of the report.