The finance results of Nintendo failed to meet analysts’ expectations, as lack of hit games led to the poorest revenue growth since the launch of the Switch console on the market in March 2017.
The company reported operating profit of 30.9 billion JPY (247 million USD) in Q3 2018, which is below the projected 37.9 billion JPY. The revenues for the period reached 221 billion JPY (1.96 billion USD), also below the expectations of 232 billion JPY. Nintendo sold 3.2 million units in the quarter from 2.9 million an year earlier.
The slowdown bothers investors, who have sent the price of Nintendo’s shares by 15% down this month, against the background of higher tech stocks. Nintendo Switch did not released new big titles in the quarter, and older and independent games were not enough to keep momentum. This raises concerns about Nintendo’s ability to reach its target of 20 million units sold for the fiscal year.
Nintendo did not change the forecast for its annual operating profit, revenue, software and Switch console sales.
“From the very beginning, we decided to set a goal that will not be easy, but it will be a challenge to achieve”, said the President of Nintendo, Shuntaro Furukawa. “The battle for the holiday season starts now”, added he..
Nintendo sold 24.2 million software items in the quarter compared to 13.9 million an year earlier. The revenue from mobile games over the period rose by 9% yoy to 9.7 billion JPY. The latest mobile title “Dragalia Lost” was released on September 27th, therefore it did not particularly affect the results for the quarter.
The revenue from 3DS continued to decline rapidly, shrinking by 65% to 16.4 billion JPY in the quarter.