Nintendo's Actions Suffer Hard Blow: Here's Why
Although Nintendo's most recent financial report had a couple of positive novelties, such as the fact that Pokémon Scarlet & Violet exceed 20 million units sold, the results published by the company were not liked by the market. Thus, the actions of the Japanese company have reached its lowest point in the last year. The price of the Nintendo Tokyo Stock Exchange fell from ¥5,624 yen to ¥5,201 yen, this has a 7.5%decrease.
The company's most recent fiscal report revealed that its net sales decreased by 1.9%, to ¥1.2 billion yen, or $9.9 billion dollars, and net profit fell by 5.8%, to ¥346 billion yen, or $2.6 billion. Nintendo mentioned that fluctuations in currency markets had contributed to the decrease in sales and profits, despite the strong sales of Switch games and hardware. Along with this, the sales expectations of your console for the current fiscal year were also reduced.
Instead of waiting 19 million, as mentioned in the second quarter, the company now hopes that by March 31, 2023 18 million units have been sold. Hide Masada, a Bloomberg reporter, mentioned that this was a surprise for many, pointing out that the impulse of the switch is falling. This was what he commented:
The end of the year Christmas season suggested that hardware sales were not so strong despite the extended offer, which also weakened software sales. It is now clear that the impulse of the switch is going down. Although the switch already exceeded PS4 sales, and console games have been a success, the company's general results were not expected. However, with a new direct Nintendo planned for today, the perspective of investors and the stock market could be positive again. On related issues, you can see the Nintendo Direct today live here. Similarly, Tears of the Kingdom could be delayed. Editor's note: Like other companies, Pandemia had its effects in Nintendo. As if that were not enough, the fact that the supply of PS5 throughout the world is finally fulfilled the demand of the public, it means that the switch already has competition, this after two years without some.
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