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Nintendo's fiscal first-quarter net profit beat estimates
CNBC • • technology
Key Points:
- Nintendo reported fiscal first-quarter revenue of 517.8 billion yen ($3.28 billion) and net profit of 147.4 billion yen, both surpassing analyst expectations significantly.
- Despite strong financial results, Nintendo Switch 2 hardware sales declined 34.4% year-over-year to 3.82 million units, while original Switch sales dropped 31.8% to 0.66 million units.
- The company maintained its full-year net sales forecast at 2.05 trillion yen and cited higher component costs, including memory chip price increases, which impacted costs by nearly 100 billion yen.
- Nintendo emphasized the importance of releasing new game titles regularly to expand the Switch 2's user base, highlighting strong sales of games like Tomodachi Life: Living the Dream and Pokémon Pokopia.
- Nintendo has implemented price increases for the Switch 2, including a $50 hike in the U.S. and a price rise in Japan, with hardware sell-through remaining solid in the Japanese market.
