TOKYO, 07 FEB – The slowdown in demand for video games and the unfavorable exchange rate weigh on Nintendo’s accounts, which is forced to revise downwards its profit estimates for the current fiscal year. For the year ending March 31, net income is expected to come in at 370 billion yen, equivalent to 2.62 billion euros, from initial forecasts of 400 billion yen. The contraction in sales of the Switch console in recent months was 21.3% to 14.9 million units, in the face of the shortage of chips, a dynamic that lasted until the end of last summer. For the fiscal year, estimates for the popular console should reach 18 million compared to 19 million expected last year. Downsizing also by revenue, to the extent of 5.6% to 1,600 billion yen and operating profit, to 480 billion yen from 500 billion. Estimates that rely on unfavorable calculations on the yen-dollar exchange rate – at 125 and appreciating compared to the estimated level of 135. “We have observed radical changes in consumer spending habits due to general price increases, and a diversification of activities related to the entertainment industry in the post-COVID-19 phase,” Nintendo president Shuntaro Furukawa said at a press conference. In the nine months between April and December, the Kyoto-based company posted a 5.8% drop in profit to 346 billion (2.45 billion euros) and a 1.9% decrease in turnover, despite it announced a 10% wage hike for its employees starting in April as a measure to fight inflation and continue to attract new talent to the job market. (HANDLE).
(ANSA)
