Nintendo profits rise despite shortage of computer chips
TOKYO (AP) — Nintendo’s profit in the April-June quarter rose 28% from a year earlier on healthy demand for its games, though its console sales were hurt by a shortage of games. semiconductors.
The Japanese video game maker behind the Super Mario and Pokémon franchises said on Wednesday its last-quarter profit was 118.9 billion yen ($895 million), down from 92.7 billion yen a year earlier. the same period in 2021.
Quarterly sales fell 4.7% to 307.4 billion yen ($2.3 billion), according to Kyoto-based Nintendo Co.
Other game makers, such as Sony Group Corp., automakers like Toyota Motor Corp. and other manufacturers have been hit by supply shortages of the chips that run most modern products.
While these supply chain disruptions are largely due to the pandemic, gaming companies have received a surge in demand from COVID-19, which has locked people at home and turned to games for fun. As pandemic precautions ease, this surge in sales is fading.
Blockbuster games have also boosted console sales, such as “Animal Crossing: New Horizons.” Among the games that launched and did well in the last quarter were “Nintendo Switch Sports,” which sold 4.84 million units, and “Mario Strikers: Battle League.”
Previously released games with strong sales included “Kirby and the Forgotten Land” and “Mario Kart 8 Deluxe”. Sales were also strong for digital downloaded games.
Nintendo sold 22% fewer Switch consoles in the last quarter, at 3.4 million units, compared to the same period last year. Cumulative sales exceeded 111.08 million units.
The company expects to sell 21 million Switch machines during the fiscal year. More than 100 million users have played the Switch over the past year, according to Nintendo.
The company kept its profit forecast for the fiscal year through March 2023 unchanged at 340 billion yen ($2.6 billion).