Nintendo raised its full-year profit forecast by 18% on Tuesday, as the weaker yen helped the Japanese video game maker offset slower-than-expected Switch console sales. The company, which derives around 80% of its revenue from overseas, expects its net profit to reach 400 billion yen (around Rs 22,200 crore) for the year to March 2023, up compared to the previous forecast of 340 billion yen (about 22,200 crore rupees). 18,900 crore).
The new projection is still below the consensus forecast for a profit of 463 billion yen (about 25,800 crore rupees), based on a Refinitiv poll of 21 analysts.
The creator of hit titles like Super Mario Bros. and Legend of Zelda cut its Switch console sales forecast for the business year to 19 million units from 21 million.
Nintendo changed its assumption for the dollar-yen rate to 135 from 115 to reflect the sharp depreciation of the Japanese currency this year.
Nintendo sold 6.68 million units of its Switch console in the six months to September 30, up from 8.28 million a year earlier. The console is in its sixth year on the market.
The company said in September that its latest title “Splatoon,” in which players engage in an ink turf battle, sold more than 3.45 million units in Japan within three days. its launch on September 9, its highest domestic launch sales ever.
In August, Nintendo announced that the company sold 23% fewer Switch consoles in the April-June quarter compared to a year earlier as a result of chip shortages.
At the time, the Kyoto-based game company said it expected purchases to improve “from late summer through fall” and stuck to its sales forecast of 21 million. units in the year to the end of March 2023, a number it has now revised to 19 million units.
© Thomson Reuters 2022