Nintendo, the gaming industry giant, has raised its annual net profit forecast, stating that a weak yen and steady sales of the Nintendo Switch console, which is currently celebrating its seventh anniversary, will contribute to increased profits. The company reported that sales have increased in the first three quarters, with major releases including the new Zelda game and the Super Mario film, which have contributed to increased sales of the Mario series games. Currently, Nintendo expects to achieve a net profit of 440 billion yen ($2.96 billion) in the current fiscal year, which is higher than the previously announced forecast of 420 billion yen.
The Nintendo Switch, which can be used both as a portable and TV-compatible console, has become a must-have device for all age groups during the Covid pandemic, but interest in the gadget is slowly waning. The Kyoto-based company sold 13.74 million Switch consoles in April-December 2023, a 7.8 percent decrease compared to the previous year. Speculation is now emerging that Nintendo will soon announce a new console to replace the Switch, although the company has so far kept its plans secret. “It would not be surprising if they announced a new next-generation console at any time,” said Hideki Yasuda, an analyst at Toyo Securities, prior to the publication of the financial results. Sam Naji, director of the gaming industry consulting and analytics firm SJN Insights, added that the announcement could happen this summer, with a likely release in November to take advantage of holiday shopping. “They need to find the right moment because they are aware that the announcement will likely cause a decline, or at least a significant decrease in Switch sales,” Naji said.
Naji said that creating a new product will be a challenge because the Switch needs to cater to two audiences – the older generation who play it as a console, and younger players who use it as a portable device. “Nintendo always surprises us, but I don’t see how they can improve on it,” he said. “I wouldn’t be surprised if it’s just an enhanced version of the Switch” with more memory or a “more powerful chipset.” Nintendo’s net profits in the first three quarters increased by about 18 percent year-on-year, reaching 408 billion yen.
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The source of the article is from the blog exofeed.nl