|
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.
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.
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 DeNA Co Ltd.
While some analysts said that could prove a breakthrough hit,
early download numbers for Nintendo's most recent mobile title
Dr Mario World, developed with Line Corp, have trailed earlier
releases like Mario Run, data from Sensor Tower showed.
Nintendo's expansion plans also include a partnership with
China's largest games maker, Tencent Holdings Ltd, that aims to
sell the Switch in that country's stunted console market. The
two firms are set to exhibit at Shanghai's ChinaJoy gaming expo
in early August.
Last week, Tencent said it will work with Nintendo-backed The
Pokemon Company on a new game, in a partnership that could
capitalize on the popularity of Japanese characters in China.
On the Switch, analysts are looking to the release of the
device's first full Pokemon games - Pokemon Sword and Pokemon
Shield - in November to further push sales.
Nintendo's diversification drive comes as the global gaming
market faces a shake-up as entrants like Google parent Alphabet
Inc and Apple Inc move into game streaming services.
Many analysts nevertheless said games fans will continue to hew
to traditional console manufacturers like Nintendo and Sony Corp
with their exclusive games featuring well-established
characters.
Nintendo's shares closed up 0.7% ahead of the earnings
announcement. Its share price has risen 39% year-to-date.
(Reporting by Sam Nussey; Editing by Christopher Cushing)
[© 2019 Thomson Reuters. All rights
reserved.] Copyright 2019 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
