Nintendo raises full-year forecast on strong software sales

    • The successful launch of The Super Mario Bros Movie in April may provide a tailwind for Nintendo’s software library and hardware sales, as the company also launched a new game in the Mario franchise recently.
    • The successful launch of The Super Mario Bros Movie in April may provide a tailwind for Nintendo’s software library and hardware sales, as the company also launched a new game in the Mario franchise recently. PHOTO: AFP
    Published Tue, Nov 7, 2023 · 03:21 PM

    NINTENDO raised its forecast for the fiscal year ending March on expectations it can sell more games to existing Switch owners.

    The Kyoto-based entertainment company said it now expects operating income of 500 billion yen (S$4.5 billion), up from 450 billion yen previously. It reported operating profit of 94.5 billion yen and revenue of 334.9 billion yen, both beating average analyst estimates of 91.6 billion yen and 311.4 billion yen, respectively. The weak yen helped Nintendo’s earnings, the bulk of which comes from overseas.

    Nintendo’s signature console, now more than six years old, has sustained its popularity with the help of game-themed custom editions and a regular flow of in-house blockbuster titles drawing new users to the platform. This month, the company added to its initiatives to expand its audience by doing video game events at nursing homes in Japan. Its shares have risen 16 per cent since the start of the year.

    The handheld-hybrid console has sustained sales deep into its lifespan, however upgraded next-generation machines from Microsoft and especially Sony Group have raised the competitive stakes. Sony’s PlayStation 5 has been the best-selling console in the US this year, according to data from Circana, formerly NPD.

    The successful launch of The Super Mario Bros Movie in April may provide a tailwind for Nintendo’s software library and hardware sales, as the company also launched a new game in the Mario franchise recently.

    The surge in artificial intelligence technology is likely to greatly benefit game platforms including Microsoft’s Xbox and Sony’s PlayStation, who’ll be “the most clear-cut beneficiaries” in the games industry, Morgan Stanley analysts led by Matthew Cost wrote last month. Nintendo has less upside from AI adoption, but also faces low risk of disruption, they added. BLOOMBERG

    Share with us your feedback on BT's products and services