By Kosaku Narioka
Nintendo projected a softer year ahead following strong annual earnings, expecting weaker Switch 2 sales and lower net profit.
The Japanese videogame maker's net profit rose 52% to 424.06 billion yen, equivalent to $2.70 billion, for the 12 months ended March. That beat the estimate of Y418.6 billion in a poll of analysts by data provider Visible Alpha. Fiscal-year revenue nearly doubled to Y2.313 trillion.
For the current fiscal year, which began in April, it projected revenue would drop 11% to Y2.050 trillion and net profit would fall 27% to Y310.00 billion.
The company on Friday said it expects to sell 16.5 million Switch 2 consoles, down from the 19.9 million units sold the previous fiscal year. It expects to sell 60.0 million software copies for the new device, up from 48.7 million in the prior fiscal year.
Nintendo began selling the Switch 2 console in June, aiming to build on the success of its predecessor, whose popularity was amplified by a pandemic-driven videogame boom.
The device, which retails for about $450 in the U.S., features a larger, more responsive screen with enhanced graphics performance.
The Kyoto-based company has been trying to diversify its revenue streams beyond videogames. It has expanded into movies, theme parks and other forms of entertainment by leveraging its popular characters and game titles.
"The Super Mario Galaxy Movie," its second animated film based on the popular videogame series, proved a big success this spring. The previous Super Mario movie, released three years ago, grossed a total of $1.36 billion worldwide.
A live-action film based on Nintendo's popular game series "The Legend of Zelda" is scheduled for 2027.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
05-08-26 0324ET
