AP

Japan games maker Nintendo’s profit slips amid chips crunch

Feb 7, 2023, 2:04 AM | Updated: 2:16 am

TOKYO (AP) — Japanese video game maker Nintendo recorded a slight drop in in profit in April to December as it maintained strong sales of its Switch console games.

Nintendo Co.’s net profit in the first nine months of the fiscal year through March was 346 billion yen ($2.6 billion), down 5.8% from 367 billion yen in the same period of the previous year.

Nintendo, the Kyoto-based maker of Pokemon and Super Mario video games, did not provide a breakdown of quarterly numbers.

Among the games selling well were “Splatoon 3,” a paint-shooting game, “Pokemon Scarlet and Violet” and “Nintendo Switch Sports.”

Nintendo sold fewer machines compared to a year earlier, partly because a shortage in computer chips, a critical part for the console, due to disruptions from the pandemic crimped production, the company said.

Nintendo lowered its full fiscal year profit forecast to 370 billion yen ($2.8 billion), from the 400 billion yen ($3 billion) it had projected in November. Previous fiscal year profit was 477.7 billion yen.

This fiscal year’s nine-month sales totaled nearly 1.3 trillion yen ($10 billion), down 1.9% from a year earlier.

Nintendo earlier was more bullish about its performance because an increase in people staying home during the pandemic boosted its sales.

That advantage is likely wearing off now that pandemic restrictions have eased and people increasingly are traveling and working outside their homes both in Japan and the rest of the world.

Nintendo expects to sell 18 million Switch consoles in the current fiscal year, down from an earlier forecast of 21 million Switch machines that was cut to 19 million machines late last year.

Cumulative Switch sales around the world have topped 122 million machines.

Japanese exporters like Nintendo have gotten a boost in profits from the yen’s weakness against the U.S. dollar and other major currencies. That lifts the value of their overseas earnings when converted into yen.

The U.S. dollar is now trading at about 130 yen after rising to about 150 Japanese yen a few months ago.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

President Joe Biden gestures after speaking to graduating students at the Morehouse College commenc...

Associated Press

Biden tells Morehouse graduates that scenes in Gaza from the Israel-Hamas war break his heart, too

Joe Biden on Sunday offered his most direct recognition of U.S. students' anguish over the Israel-Hamas war.

23 hours ago

Rudy Giuliani...

Associated Press

Rudy Giuliani is the final defendant served indictment in Arizona fake elector case

Rudy Giuliani has been served an indictment in Arizona's fake elector case for his role in an attempt to overturn the 2020 election.

2 days ago

Houston storms cause widespread damage on Friday...

Associated Press

Some in Houston facing no power for weeks after storms cause widespread damage, killing at least 4

Houston storms cause widespread damage on Friday, May 17. Thunderstorms hit the southeastern part of Texas, killing at least four people.

3 days ago

Man gets 30 years in prison for attacking ex-Speaker Nancy Pelosi’s husband with a hammer...

Associated Press

Man gets 30 years in prison for attacking ex-Speaker Nancy Pelosi’s husband with a hammer

A man has been sentenced to 30 years in prison for attacking the husband of then-House Speaker Nancy Pelosi with a hammer.

3 days ago

audio from President Joe Biden’s interview about classified documents blocked...

Associated Press

GOP advances Garland contempt charges after White House exerts executive privilege over Biden audio

The move to release audio from President Joe Biden’s interview about classified documents was blocked on Thursday by the White House.

4 days ago

Asylum processing for new migrants: Changes could come soon...

Associated Press

The Biden administration is planning more changes to quicken asylum processing for new migrants

The Biden administration is planning to quicken the asylum processing for new migrants as an interim step rather than an executive order.

5 days ago

Sponsored Articles

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Japan games maker Nintendo’s profit slips amid chips crunch