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It
recorded a 424 billion yen ($2.7 billion) net profit for the
fiscal year that ended in March, up from nearly 279 billion yen
the year before.
Annual sales rose 99% to 2.3 trillion yen ($15 billion) from 1.2
trillion yen a year earlier, as demand for Switch 2 held up,
although sales for the first-generation Switch declined.
Nintendo said it was raising the Switch 2 price in Japan to
59,980 yen ($382), effective May 25, from 49,980 yen ($318), “in
light of changes in market conditions, and after considering the
global business outlook.”
In the U.S., the price will rise to $499.99 in September, from
$449.99.
Nintendo, which is based in the ancient Japanese capital of
Kyoto, did not go into details. But all major Japanese exporters
are having to cope with U.S. President Donald Trump’s tariff
hikes and other higher costs that have been worsened by the war
in Iran.
Nintendo Co., which did not break down quarterly results,
expects an 11% decline in profit for the fiscal year through
March 2027, to 2.1 trillion yen ($13 billion). The projection
takes into account the planned price hikes.
On the plus side, Nintendo’s film “The Super Mario Galaxy Movie”
has grossed more than $800 million since its release a month
ago.
Among its recent successful game software offerings were “Mario
Kart World” and “Donkey Kong Bananza.”
The game “Tomodachi Life: Living the Dream” has sold more than
3.8 million units since going on sale two weeks ago.
Nintendo expects to sell 16.5 million Switch 2 machines in the
fiscal year through March 2027, down nearly 17% from 19.86
million in the last fiscal year. It also forecast that Switch 2
software sales will continue to grow, at 60 million, up 23% from
48.7.
It’s common for game machines to sell briskly right after they
are launched and then see sales decline. Game software tends to
continue growing. The Switch is a hybrid game machine,
functioning both as a home console connected to a display, or as
a portable handheld.
Nintendo promised more software titles for the Switch 2 this
year, including from other creators, including the latest “Final
Fantasy.”
Nintendo’s stock price jumped 3.6% after earnings were
announced.
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