If there’s a downside to an unexpected and massive spike in success, it’s that when things get back to normal, things can look worse by comparison. This is the “problem” that Nintendo is currently facing in publishing its latest quarterly report, reflecting the fact that the world has changed again. In the three months to June 30, the company posted an operating profit of 119 billion yen, which is approximately $ 1.1 billion. However, that’s 17.3 percent less than last year, when people were required to spend much more time indoors than the 144 billion yen ($ 1.3 billion).
Another difference compared to last year is the lack of a branded Nintendo game that would attract users like it did in 2020. Animal Crossing: New Horizons was (according to some analysts) the third-highest selling game of the year, which also led to an increase in sales of new Switch consoles among buyers willing to take part in the game. In fact, New Horizons is still in demand, with 1.26 million units sold this quarter, a year after its initial launch. And Nintendo’s total software sales were just 10.2 percent less than sales in the same period last year.
Funnily enough, Nintendo lined up a schedule in its financial report showing this if you remove Crossbreeding spike, its software sales have grown steadily since at least 2018. The fact that investors are still clearly nervous about Nintendo’s future – to the point that Bloomberg reports that the company will carry out a share buyback to close the gap in the fallen sales – shows the gap between Wall Street and the world we live in. But the company hasn’t changed its sales forecast or plans for the rest of the year, such is his confidence in his business.
Nintendo’s financial health is set to look much better anyway in late 2021 when several major games are released that will be released soon. Remake HD Zelda: Heavenly Sword is not covered in this report, and WarioWare: Get Together falls in September. Launches in October Metroid dread and Mario Superstar Party, and in November it launches Pokemon Shiny Diamond and Shining pearl… Plus, you know the OLED Switch and Zelda Game and Watch are coming soon, which will boost hardware sales.
Not to mention, there will probably be a third of Splatoon game continuation Zelda: Breath of the Wild and a new entry in Mario + Rabbids row. And investors seem to be forgetting that if we’re all asked to start commuting again, we’re more likely to be tempted to bring along those Switch consoles that some people panickedly bought early last year. … Which will require a constant stream of new games to keep their fingers entertained while they sit on the bus or subway.
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