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Nintendo Raises Full-Year Profit Forecast to $2.8 Billion on Record Switch Sales

Nintendo's first-half earnings surge 18% YoY, with net profit hitting 271 billion yen. Upbeat Switch console sales drive strong performance
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Nintendo, the renowned gaming giant, has upped its full-year profit projection to 420 billion yen ($2.8 billion) following record-breaking first-half earnings, propelled by robust sales of the Switch console.

For the period spanning April to September, the Japanese company reported a net profit of 271 billion yen, marking an impressive 18% surge from the previous year. Revenue followed suit, registering a 21% climb to 796 billion yen. Notably, Switch sales reached 6.8 million units, reflecting a 2.4% increase compared to the corresponding period in the previous year.

The heightened profit forecast for the fiscal year ending March 2024, now set at 420 billion yen, is primarily attributed to anticipated foreign exchange gains. This figure significantly surpasses the earlier estimate of 340 billion yen.

Nintendo made a robust entry into May with the launch of “The Legend of Zelda: Tears of the Kingdom” for the Switch, the 20th major release in its action-adventure game series. The title achieved a groundbreaking feat by selling 10 million units in the initial three days of its release in Japan.

The newly released game “Super Mario Bros. Wonder” is projected to sustain high demand. Additionally, Nintendo secured another triumph with “The Super Mario Bros. Movie,” which has grossed over $1 billion at the global box office.

However, the company cautioned that it is on track to sell approximately 15 million Switch consoles in the ongoing fiscal year, down from around 18 million in the previous year. Since its introduction in early 2017, Switch sales have enjoyed steady growth, culminating in 28.8 million units sold for the year ending March 2021. Nevertheless, sales have been on a gradual decline for the aging console, now approaching its seventh year.

Nintendo’s President, Shuntaro Furukawa, expressed prudence regarding Switch sales, despite the upturn witnessed in the company’s fiscal first half. He noted, “If we don’t increase sales during the holiday sales season, we won’t reach [the full-year target].”

Consoles and games traditionally constitute over 90% of Nintendo’s revenue. The company usually experiences a surge in sales from winter through March, with heightened demand during the Christmas and New Year festivities, as well as post-spring graduation and school entrance exams.

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