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Nintendo profit falls as Switch sales fade

Nintendo profit falls as Switch sales fade

FILE PHOTO: The Nintendo logo is displayed at the Nintendo Tokyo store, in Tokyo, Japan, Nov. 19, 2019. REUTERS/Issei Kato

(Corrects to read 22per cent (not 12per cent), paragraph 1)

TOKYO : Japan's Nintendo Co Ltd said on Thursday that sales of its Switch console fell 22per cent in the April-June quarter, in a sign that demand for the hit device may be fading in its fifth year on the market.

Investors are watching gaming firms closely for signs of a tail off in the sales boom during the COVID-19 pandemic. Nintendo is highly dependent on the cyclical console business, with devices traditionally peaking around the fifth year.

Sony Corp said on Wednesday sales of its new PlayStation 5 were robust, helping it post a record profit during the quarter.

Nintendo, which saw sales of Switch Lite units more than halve to 1.14 million, maintained its full-year Switch hardware forecast at 25.5 million units. It sold 4.45 million units of its Switch console, including the Lite, in the latest quarter.

The Kyoto-based games maker is hoping to revive Switch sales momentum with a new US$349.99 Nintendo Switch OLED model launching on Oct. 8. It is also relying on a pipeline of popular games including "WarioWare: Get It Together" and remakes of Pokemon titles, to boost earnings.

The creator of Super Mario and Animal Crossing posted a 17per cent fall in first-quarter operating profit to 119.8 billion yen (US$1.09 billion), missing the forecast of 129.3 billion yen by nine analysts, Refinitiv Eikon data showed.

It stuck with its full-year profit forecast of 500 billion yen, lower than an average prediction for 623.5 billion yen from 19 analysts, according to Refinitiv.

This story corrects to read 22per cent (not 12per cent), paragraph 1.

(US$1 = 109.6200 yen)

(Reporting by Tim Kelly and Sam Nussey; editing by Jason Neely and Anil D'Silva)

Source: Reuters/lk

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