Nintendo’s stock price drops 7.5% after latest financial results
Nintendo‘s stock price dropped by 7.5% following its latest financial results.
The company’s Tokyo Stock Exchange price dropped from ¥5,624 down to ¥5,201, its biggest drop in over a year.
The drop puts Nintendo’s share price back to roughly where it was in January 2022, when it dropped to ¥5,192, and suggests a negative reaction to the publication of Nintendo’s latest financial results on Tuesday.
In its results for the first nine months of FY23, Nintendo said its net sales were down 1.9% at 1,295 billion yen ($9.9 billion) and net profit was down 5.8% at 346.2 billion yen ($2.6 billion).
The company said fluctuations in foreign exchange markets had contributed to sales and profits declining, despite strong sales of Switch games and hardware.
Nintendo also said it expects to sell 18 million Switch consoles by the end of March, which is down from the 19 million predicted in the previous quarter, and 21 million before that.
That would mean that, as it approaches its seventh year on the market, Switch sales will have declined for two fiscal years in a row (down from 23m units in FY22 and 28.8m in FY21).
After Nintendo’s results were first posted, Bloomberg reported that they had come as a negative surprise to some market analysts, with Toyo Securities’ Hideki Yasuda telling the publication: “The outcome was weak and that’s a surprise.
“The year-end holiday season suggested sales of hardware weren’t that strong despite amplified supply, which also weakened sales of software. It’s now clear that the Switch’s momentum is downward.”
These views were echoed in a new Bloomberg article today, in which other analysts suggested that the Switch is running out of steam. “Earnings showed the Switch is rushing to the end of its life cycle at a
Read more on videogameschronicle.com
