Tokyo
The runaway success of the Switch 2 console drove up Nintendo’s net profit by more than 50 percent in the nine months to December, the Japanese video game giant said Tuesday. But a global memory chip shortage, created by frenzied demand for artificial intelligence hardware, could push up manufacturing costs.
The Switch 2 became the world’s fastest-selling games console after launching to a fan frenzy last summer. It is the successor to the original Switch, which soared in popularity during the pandemic when games such as “Animal Crossing” struck a chord during long lockdowns. Both are hybrid devices that can be connected to a TV or used on-the-go.
In April-December, net profit jumped 51.3 percent year-on-year to 358.9 billion yen ($2.3 billion), and revenue nearly doubled on-year to 1.9 trillion yen, Nintendo said. But the firm kept its annual unit sales target for the Switch 2 steady at 19 million, and also held its full-year net profit forecast of 350 billion yen.
“Nintendo Switch 2 got off to a good start following its launch on June 5 and unit sales continued to grow through the holiday season,” the company said. Nearly 17.4 million Switch 2 devices were sold in the nine-month period, it added. “Maintaining momentum is certainly a big focus for Nintendo,” Krysta Yang of the Nintendo-focused Kit and Krysta Podcast told media.
A lack of heavy-hitting first-party new games for the Switch 2 in coming months risks hindering growth, although third-party titles such as “Resident Evil Requiem” should help fill the gap, she said. Nintendo said Tuesday it planned to release “Mario Tennis Fever” this month and “Pokemon Pokopia” in March. While the firm is diversifying into hit movies and theme parks, consoles remain the core of its business. — DNA
