Nintendo cuts full-year guidance as interim profit falls 60%

Nintendo Co Ltd reported a steep drop in profit for the first half of its financial year, citing weaker year-on-year sales due to the strong performance of last year’s blockbuster game releases.

Nintendo cuts full-year guidance as interim profit falls 60%

For the six months ending September 30, the Kyoto-based video game giant posted a pretax profit of JPY147.06 billion (GBP744.0 million), down 61% from JPY379.98 billion the previous year. Profit per share fell 60%, from JPY233.03 to JPY93.33. Net sales decreased by 34% to JPY523.30 billion, compared to JPY796.24 billion a year ago, while cost of sales declined 37% to JPY205.37 billion. Operating profit also dropped 57% to JPY121.51 billion from JPY279.91 billion. Nintendo announced an interim dividend of JPY35, a 56% decrease from JPY80 last year. The company attributed the decline to a challenging comparison with the success of *The Legend of Zelda: Tears of the Kingdom*, released in May 2023, which had significantly boosted sales. In the first half of this fiscal year, hardware sales fell 31% and software sales were down 28% year-over-year. Looking forward, Nintendo revised its full-year forecast, lowering its net sales target to JPY1.28 trillion from JPY1.35 trillion and its operating profit forecast to JPY360.00 billion from JPY400.00 billion. This would represent a 23% decline in net sales and a 32% drop in operating profit compared to last year’s results.

Nintendo Switch continues to shine

“Although Nintendo Switch hardware and software unit sales were both below our initial expectations, many players continue to enjoy Nintendo Switch even into its eighth year,” the company said. “Our aim is to not only place one system in every household but potentially several systems, or even one for each person. By highlighting the appeal of the Switch and introducing new games, we aim to extend the console’s lifecycle.” Nintendo remains optimistic about upcoming titles, including *Super Mario Party Jamboree*, launched in October, *Mario & Luigi: Brothership*, set for November, and *Donkey Kong Country Returns HD*, scheduled for January 2025.