Nintendo Co. on Tuesday lowered its fiscal-year earnings forecasts as it expects weaker sales of its Switch consoles and software.
The Japanese videogame company 7974, +0.05% now expects revenue to decrease 5.6% to Y1.600 trillion ($12.06 billion) for the fiscal year ending in March, more sharply than its previous forecast of a 2.7% decline. It expects net profit to drop 22.5% to Y370.00 billion, compared with its previous expectation for a 16% decrease.
Nintendo said it sold 14.9 million Switch consoles in the nine-month period ended Dec. 31, down from 18.95 million units during the same period a year earlier. It sold 172.1 million Switch software copies in the nine-month period, down from 179.3 million copies a year earlier.
The company cut its forecast for Switch console sales to 18.0 million for this fiscal year from its previous view of 19 million units and reduced its projection of Switch software sales to 205.0 million copies from its previous view of 210.0 million copies.
Nintendo said its nine-month net profit fell 5.8% from a year earlier to Y346.23 billion. Third-quarter net profit was Y115.78 billion, given net profit of Y230.45 billion in the preceding six-month period, according to a Wall Street Journal calculation. That was below the estimate of Y159.06 billion from a poll of analysts by Quick.
Nine-month revenue declined 1.9% from a year earlier to Y1.295 trillion. Third-quarter revenue was Y638.20 billion, given a revenue of Y656.97 billion in its first half.
Write to Kosaku Narioka at [email protected]