July 26, 2017

Hot Switch sales boost Nintendo sales, trim quarterly loss

28 April 2017, 01:18 | Muriel Sparks

Nintendo said Thursday it expects to sell 10 million units of the new Switch game console over the next year, as it bets big on the successor to its poor-selling Wii U.

The strong launch for Switch is a relief for Nintendo, which has seen sales and its strength in the industry faltering since the Wii U launched in 2012.

Nintendo also revealed that its more affordable 3DS console is continuing to sell well, with 7.27 million units sold over the past fiscal year, an increase of 7% year-on-year. That forecast is less than analysts were expecting. Nintendo gambled on a hybrid design that allows the Switch to play games on the big screen TV at 1080p when docked, and also on the go with a built-in 6.2-inch 720p multi-touch display. Now the early success of the Switch has fueled hope of a long-term earnings recovery and sent the firm's share price about 20 percent higher since the console's March debut.

Based on the hype around the console, initial reviews and the fact that some are calling the new Zelda game the greatest game ever created, the Nintendo Switch appears to be in a very solid position right now. In particular, The Legend of Zelda: Breath of the Wild has won huge popularity with recorded sales of 2.76 million units (the total units sold including the Wii U version is 3.84 million units) and 1-2-Switch has been generating buzz. Ono projects annual sales of the Switch will grow for the next three years from 8.7 million in 2018 to 18 million in 2020. Sales have actually increased over the a year ago, most likely due to popular titles like Pokemon Sun & Moon. Those specifically mentioned by Nintendo are Pokemon Sun and Moon, with combined sales of 15.44 million, Super Mario Maker for 3DS with 2.34 million units and Kirby: Planet Robobot with 1.36 million units.

With the Switch off to a strong start and production increased, Nintendo believes it will sell another 10 million units in the next year. Downloads for Fire Emblem were less than one-tenth of that figure, but Fire Emblem earned more than Mario through in-game purchases.

Easy choice: Browns CB Haden wants Garrett with No. 1 pick
With the need for a quarterback glaring, the Browns find themselves once again trying to find their franchise signal caller. How many trades did the Bears make during last year's draft? Still, there's only so much information to gather and analyze.

Aside from these games, Ratalaika Games have a number of games out on other systems and they have confirmed they are looking at porting those to Switch as well, so be on the lookout for future announcements regarding these titles as well. Nintendo said the NES Classic launched to "widespread popularity". Third-party developers have also announced major titles for Nintendo 3DS. Net profit was helped by Yen64.5 billion from selling part of the stake in the Seattle Mariners operator it owned.

Will the Switch change Nintendo's outlook?

Switch's future hinges on whether Nintendo can provide a continued stream of attractive game titles, said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. "Pikmin in June and July", the report says regarding 3DS.

Following today's release of financial results for the 2016 fiscal year, Nintendo CEO Tatsumi Kimishima spoke as usual with shareholders and journalists to comment on the state of the company. During this period we will continue striving to maintain the momentum of the platform and to reach a broader audience, including females and children, across the world.

Other News

Trending Now

Russian warship sinks after Black Sea collision
The Turkish coast guard said it rescued 78 people from the Russian ship, which was later confirmed by the Russian authorities. Shipping agent GAC said the Russian ship and the Togo-flagged vessel - Youzarsif H - collided in fog and low visibility.

Honeywell Tops Profit And Sales Estimates
LLC now owns 942 shares of the conglomerate's stock worth $110,000 after buying an additional 566 shares during the period. The company had revenue of $9.49 billion for the quarter, compared to analysts' expectations of $9.33 billion.

Saudi King Salman fires top officials, restores benefits to state employees
In other changes, Salman dismissed minister of information and culture Adel Al Turaifi and replaced him with Awad Al Awad. Meanwhile, Saudi Minister of State for Civil Service Khaled Al Araj was removed from his post and set to be investigated.

Fiat Chrysler profit up more than a third as Europe improves
It represents a security's price that, if achieved, results in a trader recognizing the best possible outcome for his investment. The average is taken over a specific period of time, like 10 days, 20 minutes, 30 weeks, or any time period the trader chooses.

Trump blasts 'ridiculous' court ruling that blocked his order on sanctuary cities
Judge Orrick said that the language of the executive order made clear it sought to withhold funds beyond law enforcement. Orrick said his ruling does not affect the administration's ability to enforce existing conditions on federal grants.

Exxonmobil Investment Management Inc. TX Lowers Position in Paypal Holdings Inc (PYPL)
The overall volume in the last trading session was 5.12 million shares, versus the average volume of 3.93 million shares. Today, Paypal Holdings (NASDAQ:PYPL) stock received an upgrade by Piper Jaffray Companies from Underweight to Neutral.

NFL prospect denies rape report made to police; no charges
His draft stock was continuing to rise following the NFL Combine and Conley was projected by many to me a mid first round pick. We will have to see how much this report impacts Conley's draft status when the draft officially kicks off on Thursday night.

Ivanka Trump heads to Berlin for women's conference
Donald Trump will prioritise the European Union ahead of Britain over free-trade deals with the U.S. , officials have said.

Hyundai Motor Q1 net plunges 21% on weak China sales
Kia Motors will subsequently also produce other models, which includes its global high-volume hatchbacks - the Picanto and Rio. We also brought you some information about its likely product line-up, pricing and model positioning strategy.

Twitter smashes analyst predictions as number of users soars
The microblogging service said average monthly active users increased 6% to 328m in the first quarter from a year earlier. Twitter says that Trump is not the only reason Twitter growth improved last quarter.