Investors are watching gaming firms closely for signals that the COVID-19 pandemic sales boom may be running out of steam. Nintendo is highly dependent on the cyclical console business, with sales of its devices traditionally peaking around the fifth year.
Nintendo saw sales of Switch Lite units more than halve to 1.14 million during the April-June quarter but maintained its full-year forecast for Switch hardware at 25.5 million units. It sold 4.45 million Switch consoles, including the Lite, during the quarter.
Both companies have warned that shortages of semiconductors could hurt game console output beyond current targets.
Kyoto-based Nintendo is hoping to revive Switch sales momentum with a new $349.99 Switch OLED model launching on Oct. 8. It is also relying on a pipeline of popular games including “WarioWare: Get It Together” and remakes of Pokemon titles to boost earnings.
It stuck with its full-year profit forecast of 500 billion yen, lower than an average prediction of 623.5 billion yen. The company is known for releasing conservative profit outlooks that it revises up through the business year.
($1 = 109.6200 yen)
(Reporting by Tim Kelly and Sam Nussey; editing by Anil D’Silva and Edwina Gibbs)