Tuesday, March 21, 2023
HomeMarketNintendo Stock Falls on Weaker Outlook

Nintendo Stock Falls on Weaker Outlook

Nintendo expects to sell 18 million Switch consoles for the full fiscal year that ends in March.

- Advertisement -

Kiyoshi Ota/Bloomberg

American depositary shares dipped Tuesday after the Japanese videogame titan cut its expectations for
Switch hardware and software sales. It’s the latest videogame firm to lower its expectations for the coming months.

The company said it expects to sell 18 million Switch consoles for the full fiscal year that ends in March, down from a prior forecast of 19 million. The company also cut its forecast for software units sold to 205 million from 210 million. The firm expects full-year sales of 1.6 trillion yen ($12.2 billion), down from a prior estimate of 1.65 trillion yen.

“We will work to energize the platform by continuously adding new titles to those are already available and encouraging even more people to continue to enjoy playing Nintendo Switch,” the company said in an earnings release.

Nintendo also reported fiscal third-quarter revenue of 638.2 billion yen, which was in line with analyst expectations, according to FactSet. Earnings per share of 99.44 yen topped expectations at 99 yen a share, according to FactSet.
Take-Two Interactive Software
(TTWO) reported disappointing results and cut its outlook on Monday.

Nintendo said semiconductor and other component supply shortages hampered hardware production until late summer.

Nintendo’s American depositary stock dropped 4.5% to $10.10 in Tuesday trading.

The company said lifetime Nintendo Switch unit sales hit 122.55 million through Dec. 31, while software sales on the system were up to 994.3 million. Mario Kart 8 Deluxe is the top-selling game with 52 million units sold. Pokemon Scarlet and Pokemon Violet, which launched in November, combined to sell 20.6 million units through the end of the quarter.

The company plans to host a Nintendo Direct livestream at 5 p.m. ET on Wednesday. Such events generally present details of coming games, which could get Wall Street more excited about the firm’s content release pipeline ahead.

Write to Connor Smith at connor.smith@barrons.com

Credit: marketwatch.com

- Advertisment -

Most Popular