Bloomberg News
@Bloomberg-News·2.8M subscribers·40.1K videos
Nintendo Plunges After Outlook Cut as Switch Demand Cools
Posted
February 9, 2023
Views
1,571
Likes
35
Comments
2
Engagement
2.36%
February 9, 2023
1,571
35
2
2.36%
Every word spoken in this episode is indexed. Type any phrase to jump straight to the moment it was said.
Type any word or phrase that may have been spoken. Click a result to seek the player to that exact moment.
Try a name, a topic, or a quoted line
See what was published immediately before and after this episode.
0:11
0:52Now PlayingNintendo Co.’s stock price plunged after it cut its full-year earnings and revenue outlook in a sign of flagging demand for the aging Switch console.
Shares in the Kyoto-based company dropped 7.5% in their biggest drop in 16 months in Tokyo Wednesday. The company missed console sales targets in its December quarter earnings results, underscoring uncertainty around the Switch after a six-year run despite a consistent pipeline of software hits.
“Earnings showed the Switch is rushing to the end of its life cycle at a faster pace than what we had anticipated,” said Kazunori Ito, an analyst at Morningstar. “Hardware strategy is a key for Nintendo in the next fiscal term, but it looks like it has no good measures for now.”
Investors are focusing on the Switch’s sales momentum in the coming fiscal year. Nintendo has sat out a broader rally in tech stocks this year and may remain stuck in the doldrums until it unveils a successor to the Switch, which has seen sales declining over the past two years. The company expects to end the year with about 18 million consoles sold, down from an earlier 19 million target.
Nintendo said it now expects operating income of 480 billion yen ($3.7 billion) for the year ending March, down from 500 billion yen previously. It’s projecting net sales of 1.6 trillion yen, down from 1.65 trillion yen.
--------
Subscribe to our YouTube channel
Subscribe to Bloomberg Originals
Bloomberg Quicktake brings you global social video spanning business, technology, politics and culture. Make sense of the stories changing your business and your world.
Connect with us on…
Breaking News on YouTube
Sentinel Indexing in Progress
Metadata and chapters are available. Claim extraction for this episode is pending.
All video content is delivered via YouTube embedded players in accordance with the YouTube Terms of Service. Sentinel provides research tools that promote discovery and accountability across political media.
