Japanese gaming
giant Nintendo has swung back into profit thanks to the success of the new
Switch console it released in March. Nintendo beat analyst expectations by
posting first-quarter operating profits of 16.21bn yen (£111.39m), compared to
a loss of 5.13bn yen in the same period last year. The Kyoto-based company sold
1.97m units of the Switch console in the three months to the end of June, down
from the 2.74m it sold in its first month. However, it has reiterated its
target of selling 10m units in the year. The demand for the console has helped
push Nintendo’s share price up dramatically since it was launched. Nintendo
shares have risen more than 55pc since March 2, the day before the Switch was
released.
The company is working on
diversifying its portfolio, having announced that it is building Nintendo theme
parks and taken its first steps into mobile gaming with the release of the
Super Mario Run game last year. The decision followed the enormous success of
the Pokemon Go mobile game, which was developed by Niantic, a US company in
which Nintendo holds a stake. Demand for the Switch has been so strong that the
company reportedly doubled its planned production in March, before ordering a
production increase two months later in order to to have more consoles ready
for the holiday season. In the UK, video game retailer Game Digital blamed a
low supply of the console for a profit warning which sent shares tumbling 36pc.
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