Nintendo's profit rises despite shortages of computer chips

By AP News

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TOKYO (AP) — Nintendo’s profit in the April-June quarter rose 28% from a year earlier on healthy demand for its games, although its console sales were dented by a shortage of semiconductors.

TOKYO (AP) — Nintendo’s profit in the April-June quarter rose 28% from a year earlier on healthy demand for its games, although its console sales were dented by a shortage of semiconductors.

The Japanese video game maker behind the Super Mario and Pokemon franchises said Wednesday its profit in the last quarter totaled 118.9 billion yen ($895 million), up from 92.7 billion yen in the same period in 2021.

Quarterly sales fell 4.7% to 307.4 billion yen ($2.3 billion), according to Kyoto-based Nintendo Co.

Other game makers, such as Sony Group Corp., automakers like Toyota Motor Corp. and other manufacturers have been hurt by shortfalls in supplies of the chips that run most modern products.

While those supply chain disruptions are largely due to the pandemic, game companies got a big boost in demand from COVID-19, which had people stuck at home and turning to games for entertainment. As pandemic precautions ease, that spike in sales is wearing off.

Hit games have also driven console sales, such as “Animal Crossing: New Horizons.” Among the games that were released and did well during the last quarter were “Nintendo Switch Sports,” which sold 4.84 million units, and “Mario Strikers: Battle League.”

Previously released games with strong sales included “Kirby and the Forgotten Land” and “Mario Kart 8 Deluxe.” Sales were also strong for downloaded digital games.

Nintendo sold 22% fewer Switch consoles during the latest quarter, at 3.4 million units, compared to the same period last year. Cumulative sales topped 111.08 million units.

The company expects to sell 21 million Switch machines for the fiscal year. More than 100 million users played the Switch over the last year, according to Nintendo.

The company kept its profit forecast for the fiscal year through March 2023 unchanged at 340 billion yen ($2.6 billion).

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Yuri Kageyama is on Twitter: https://twitter.com/yurikageyama

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Toyota Motor

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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