Nintendo Co., Ltd. has revised its financial outlook for the current fiscal year, projecting a decline in both sales of its Switch 2 console and net profit.
The Japanese gaming company reported that for the fiscal year ending March 31, net profit surged by 52% to 424.06 billion yen (approximately $2.7 billion), exceeding analyst expectations of 418.6 billion yen. Annual revenue nearly doubled, reaching 23.13 trillion yen.
However, for the new fiscal year beginning in April, Nintendo anticipates a different trajectory. The company forecasts an 11% decrease in revenue to 20.5 trillion yen and a 27% drop in net profit to 310 billion yen.
Specifically for its hardware, Nintendo announced it expects to sell 16.5 million units of the Switch 2 console this fiscal year, down from the 19.9 million units sold in the previous year. Conversely, the company projects sales of new game software for the console to reach 60 million copies, an increase from the 48.7 million copies sold last year.
The Switch 2 was launched in June of last year, intended to build upon the success of its predecessor, which saw massive sales fueled by a pandemic-driven gaming boom. The newer console, retailing for around $450 in the United States, features a larger, more responsive touch screen and upgraded graphics capabilities.
Headquartered in Kyoto, Nintendo is actively pursuing a strategy to diversify its revenue streams beyond its core video game business. Leveraging its portfolio of iconic intellectual property and game copyrights, the company is expanding into films, theme parks, and other entertainment ventures.
This strategy has seen recent success with the second animated film based on its classic games, "The Super Mario Galaxy Movie," which performed strongly at the box office this spring. The first Super Mario movie, released three years ago, grossed a total of $1.36 billion worldwide.
Furthermore, a live-action film adaptation of Nintendo's popular game franchise "The Legend of Zelda" is scheduled for release in 2027.
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