Video Games: The Switch Boosts Nintendo’s Annual Net Profit

Video Games: The Switch Boosts Nintendo's Annual Net Profit

The Japanese video game pioneer Nintendo reported Thursday a 39% year-over-year jump in its annual net profit, thanks to its Switch console and especially to the growing associated games library, but expects a decline of 7 % in 2019/20.

The net result for the year ended March 31 was 194 billion yen (1.76 billion francs), for a turnover that gained 13.7% year on year to 1200.6 billion yen, carried by the performances during the holidays with games that have been torn off.

The original goal of selling in the 20 million year the Switch hybrid console, both fixed and portable, had been lowered during the year to 17 million, and this total was almost reached (16.95 million, 13%). This brings to 34.64 million cumulated since the marketing of this machine two years ago.

Nintendo, which is developing a new version for the coming months, table for this year started April 1 out of a total of 18 million units sold.

All-powerful switch

Meanwhile, thanks to Super Mario, Smash Brothers, Pokemon, 118.55 million games for Switch (87%) were sold during the review period and Zelda’s parent company, Pikachu et al., Hopes to sell 125 million on the current year.

Game downloads for consoles or mobile phones certainly increase sharply because the basis of comparison was low, but this still represents only a small part of the total revenue.

The Switch is de facto now almost the only major source of income for the centenary company, whose activities began with traditional Japanese card games.

The 3DS / 2DS handheld consoles, they, no longer find takers, and Nintendo does not speak moreover so much more, even if the installed fleet leads some sales of dedicated games.

For the current year, which will be closed in March 2020, Nintendo is expecting 4.1% growth in revenue and operating profit of JPY 1,250 billion and JPY 260 billion, respectively. could do better if the currency rates prove more favorable than those with which he made his calculations (105 yen for one dollar, against 110.9 yen on average last year).