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Nintendo hikes Switch sales forecast, reports profit at decade high

Nintendo Co Ltd <7974.T> on Thursday raised the full-year sales forecast for its hit Switch console, after posting its highest quarterly profit in 10 years on strong demand for the device over the year-end shopping season.

www.reuters.com

Nintendo raised its Switch sales forecast for the year ending March 31 to 19.5 million units from 18 million units in a previous estimate, and hiked its operating profit forecast by 15% to 300 billion yen.

Operating profit for the October-December quarter rose 6% to 168.7 billion yen ($1.54 billion), versus 158.6 billion yen a year earlier.

The quarterly profit was its highest since the same period of 2009, but still came in below an average forecast of 175 billion yen from 10 analyst estimates compiled by Refinitiv.

The Kyoto-based gaming company sold 12.6 million units of its hybrid home-portable Switch device in the nine months to December and 5.2 million handheld-only Switch Lite units that went on sale in September.

Nintendo’s release of the lower-priced Switch Lite handheld and two new Pokemon titles - the console’s fastest-selling game series - have helped drive momentum in the device’s third year as hardware from rivals Sony (6758.T) and Microsoft (MSFT.O) approaches the end of its lifecycle.

Gaming fans have growing opportunities to experience Nintendo’s popular roster of characters, from a branded store in Tokyo that has seen long queues, to a Nintendo-themed area due to open in Osaka’s Universal Studios Japan park this summer.

The company’s expansion includes the start of Switch sales in China in December with partner Tencent Holdings Ltd (0700.HK) as it tries to shut down a gray market for its products.

With its family-friendly games, Nintendo is seen as having a better chance of receiving approval for its titles from China’s regulators.

Production in China is seeing some impact from the coronavirus epidemic that has hit the country, CEO Shuntaro Furukawa said at a news briefing.

Nintendo's shares closed down 1% ahead of the earnings, with the benchmark index .N225 down almost 2%. Its shares are down 4% this year, having climbed 50% last year.

Thanks mods for the title change

 

[IbizaPocholo]

The Switch Online Service Now Has More Than 15 Million Subscribers

But not everyone is renewing their membership

www.nintendolife.com

During Nintendo's latest financial results briefing, president Shuntaro Furukawa touched on both the positives and negatives of the service – mentioning how new members "continue to join", but not everyone is necessarily renewing their membership:

One more point to mention is the more than 15 million accounts worldwide with a paid membership to Nintendo Switch Online, and those sales occupy a certain presence within our digital sales. But while new members continue to join, there are also those who do not renew their memberships.

According to Niko Partners senior analyst Daniel Ahmad (via Twitter), this is eight million more subscribers than this time last year. It's also means "approximately" 29% of Switch owners subscribe to Nintendo's paid online service.

To ensure this growth continues, Furukawa reiterated how the company would continue to enhance the appeal of the service:

We will continue to enhance the appeal of the service to bring more features and more fun to Nintendo Switch.

 

[Codes 208]

You want people to stay with the subscription? Add n64 and gb-gba games you bastards.