Gadgets Africa
  • News
    Paystack co-founder Shola Akinlade acquires Danish football club

    Paystack co-founder Shola Akinlade acquires Danish football club

    AI company Cerebras releases ChatGPT-like models

    AI company Cerebras releases ChatGPT-like models

    China urges Apple to strengthen data security, privacy protection

    China urges Apple to strengthen data security, privacy protection

    FTX's Bankman-Fried faces new indictment of bribing Chinese officials

    FTX’s Bankman-Fried faces new indictment of bribing Chinese officials

    Google to launch new features for teachers, students

    Google to launch new features for teachers, students

    Substack launches community fund for writers to own stake in company

    Substack launches community fund for writers to own stake in company

    Alphabet seeks dismissal of US antitrust lawsuit against Google

    Alphabet seeks dismissal of US antitrust lawsuit against Google

    Oxbotica, Google partner to deploy self-driving software

    Oxbotica, Google partner to deploy self-driving software

    Meta plans lower bonuses for staff -Report

    Meta plans lower bonuses for staff -Report

  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders
Gadgets Africa
No Result
View All Result

Nintendo profit rises as yen weakens

by Agency Report
August 3, 2022
in Gaming
Reading Time: 2 mins read
Nintendo profit rises as yen weakens

Image via Encyclopedia Britannica

Share on FacebookShare on TwitterShare on Telegram

Nintendo said Wednesday its first-quarter net profit jumped 28 per cent on-year, mainly thanks to a weaker yen, but hardware and software sales declined because of a chip shortage and Covid-19 supply issues.

The yen has plummeted more than 10 per cent against the dollar this year as sky-high US inflation fuels a widening monetary policy gap — a boon for Japanese companies like Nintendo who sell products overseas.

For the three months to June, the gaming giant posted a net profit of 118.9 billion yen ($893 million), citing the positive impact of “the depreciation of the yen”.

But the company left its annual forecast unchanged, warning that the global shortage of semiconductors and other logistical snarl-ups could hamper console production and distribution.

New game releases got off to a good start, including “Nintendo Switch Sports” and “Mario Strikers: Battle League”, it said, but sales were still no match for the previous year during the pandemic gaming boom.

“Due to the effects of supply shortages in semiconductors and other components among other factors, hardware sales were down 22.9 per cent year-on-year, and software sales were down 8.6 per cent year-on-year,” Nintendo added.

Soaring demand for indoor entertainment during virus lockdowns sent the company’s profits soaring to an annual record of 480 billion yen in 2020-21.

The firm nearly matched that figure in the last financial year, with its blockbuster Switch console continuing to perform well and strong software sales, especially for “Mario Party Superstars” and the latest Pokemon titles.

But Nintendo now has a more cautious outlook as life returns to normal, causing the gaming craze to slow, and expects to report a 340-billion yen net profit in 2022-23.

Hideki Yasuda, a senior analyst at Toyo Securities, warned that the chip shortage and supply problems linked to Covid-19 lockdowns in China would continue to pose headaches for Nintendo.

“The company is feeling significant pressure on its supply chain,” he told AFP before the earnings release. “The Switch is sold out at stores. There is not enough supply.”

It will be “very difficult” for Nintendo to hit its annual production target for the console if the problems continue, Yasuda said, after Switch sales declined 20 per cent on year in 2021-22.

However, a recession in the United States or elsewhere is unlikely to pose a major problem, he said.

“Video gaming doesn’t feel the impact of recessions. When the economy is strong, people buy products. When the economy weakens, people spend more time playing games.”

AFP

Tags: Nintendo
ADVERTISEMENT

Related Posts

GameStop smashes revenue expectations, achieves profitability
Gaming

GameStop smashes revenue expectations, achieves profitability

by Joy Onuorah
March 21, 2023
China okays first foreign video games since 2021 crackdown
Gaming

China okays first foreign video games since 2021 crackdown

by Agency Report
December 28, 2022
Gaming industry feels squeeze after pandemic boom
Gaming

Gaming industry feels squeeze after pandemic boom

by Agency Report
August 14, 2022
House of Reps NIN gaming operators
Gaming

Reps demand integration of NIN for gaming operators

by Enitan Daramola
June 23, 2022
Next Post
PHOTOS: Pantami meets Twitter, Facebook representatives

PHOTOS: Pantami meets Twitter, Facebook representatives

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

How to activate 5G on iPhone

How to activate 5G on iPhone

November 14, 2022
Facebook removes Afghan accounts controlled by Taliban

Facebook removes Afghan accounts controlled by Taliban

July 21, 2022

Trending.

Important steps to extend your iPhone's lifespan

Important steps to extend your iPhone’s lifespan

December 26, 2022
US gov’t investigates complaints on Ford Explorer flying parts

US gov’t investigates complaints on Ford Explorer flying parts

January 31, 2023
How to retain MTN, Glo, 9Mobile numbers outside Nigeria

How to retain MTN, Glo, 9Mobile numbers outside Nigeria

December 10, 2022
FG, EU launch electric motorcycles for rural communities

FG, EU launch electric motorcycles for rural communities

April 7, 2022
Mobile subscriptions hit 222 million in 2022

Mobile subscriptions hit 222 million in 2022

January 23, 2023
Gadgets Africa

© 2023 Gadgets Africa.

Navigate Site

  • News
  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders

Share

No Result
View All Result
  • News
  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders

© 2023 Gadgets Africa.

Go to mobile version