By Kosaku Narioka
Nintendo Co.’s net profit in the first half of the year fell 19% from a year earlier, as the gaming boom sparked by the Covid-19 pandemic cooled.
The Japanese video game company said Thursday that net profit for the six-month period ended in September fell to 171.83 billion yen ($ 1.51 billion) from 213.12 billion yen, when the surge gaming increased its bottom line amid the pandemic.
Second-quarter net profit was 79.09 billion yen, given first-quarter net profit of 92.75 billion yen, according to a calculation by the Wall Street Journal. This missed the estimate of Y91.74 billion taken from a quick survey of analysts.
First-half revenue fell 19% from a year ago to 624.27 billion yen, as sales of Switch consoles and software fell.
Second quarter revenue was 301.625 billion yen, compared to 322.65 billion yen in the previous quarter.
Nintendo raised its sales forecast for Switch software, but lowered its Switch console sales forecast for its fiscal year ending in March, as a chip shortage is holding back hardware production. Nintendo expects to sell 24.0 million Switch consoles this fiscal year, up from 25.5 million previously, and 200 million copies of Switch software, up from 190 million previously forecast.
Nintendo maintained its revenue guidance for the year and increased its view of net profit. The company continues to expect revenue to decline 9.0% to 1.6 trillion yen, with net profit down 27% to 350.00 billion yen, less sharply than its previous view of a decrease of 29%.
Write to Kosaku Narioka at [email protected]