TOKYO (Reuters) – Japanese gaming company Nintendo Co Ltd on Tuesday reported a 10% decline in quarterly profit, far wide of market expectations, as a rise in costs dulled stronger sales of its hybrid home-portable Switch console.
Operating profit for the three months through June was 27.4 billion yen ($252.26 million), versus the 40 billion yen average of 10 analyst estimates compiled by Refinitiv.
Gaming - Company - Switch - Consoles - Quarter
The Kyoto-based gaming company said it sold 2.1 million Switch consoles in the quarter, bringing the total installed base to 36.9 million units. It maintained its full-year sales forecast of 18 million units for the year ending March.
Looking to offset declining sales of its aging 3DS handheld console and expand beyond its core fanbase, Nintendo will in September launch the Switch Lite device, which cuts unit costs by dropping the Switch’s TV dock and detachable controllers.
Switch - Lite - United - States - Switch
The Switch Lite will retail in the United States at $199.99, compared with the Switch’s price of $299.99. Nintendo did not provide a sales forecast for the new device.
The launch comes as the famously secretive Kyoto-based gaming company shows signs of greater openness, tying up with mobile game developers for smartphone-based titles like Mario Kart Tour, which is due to be released this summer in partnership with...
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