Nintendo Reports Drop in Quarterly Profit on Weak Switch, Software Sales

By Kosaku Narioka

Nintendo reported a drop in first-quarter net profit due to weaker sales of Switch console and software.

The Japanese videogame maker said Friday that net profit fell 55% from a year earlier to 80.95 billion yen, equivalent to $542 million, for the three months ended June. That missed the estimate of Y88.33 billion in a poll of analysts by data provider FactSet.

First-quarter revenue decreased 47% from a year earlier to Y246.64 billion.

Nintendo kept its sales forecasts for Switch console and software and earnings projections for the fiscal year ending March 2025.

The videogame industry is struggling to regain its vigor seen during a pandemic-driven boom a few years ago.

Nintendo said in May that it would announce a successor to its seven-year-old Switch videogame console by the end of March 2025.

The Japanese videogame maker has been trying to diversify its income streams, using its popular characters and game series in movies and other forms of entertainment outside the videogame space.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 02, 2024 03:09 ET (07:09 GMT)

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