June 26, 2022

Video game making company Nintendo announced its profit to fall by 19% in the April-September period year from the previous year.

According to the Japanese game maker, it recorded a 171.8 billion yen ($1.5 billion) profit in the mentioned period, down from 213 billion yen in the previous year. Half of its fiscal sales fell through 19% to 624 billion yen ($5.5 billion).

The gaming company received a boost from the pandemic by providing at-home entertainment similarly to the global companies dealing in same commodity.

Nintendo known for its famous Super Mario and Pokemon games, in the April-September period last year enjoyed strong sales of its game “Animal Crossing: New Horizons”. However, it could not maintain the same sales this year, although the game was so popular boosting sales of the Nintendo Switch machines.

According to reports, Nintendo due to a shortage of computer chips caused by the pandemic has lowered its forecast for the second fiscal half for its Switch hardware sales by 1.5 million units to 24 million, thus hurting production of those machines.

The company so far has reportedly sold nearly 9.3 million Switch machines worldwide, including the Switch Lite version, with the year-end holidays being critical for its sales.

Nintendo reported its overall sales of downloaded software to be mixed, while its mobile sales failed to grow over people continuing to enjoy older releases.

It reported that some new games sold well, such as “the Legend of Zelda: Skyward Sword HD,” selling over 3.6 million units, along with “New Pokemon Snap,” which sold 2.2 million units.

The company is currently been gaining on its collaboration with U.S. software company Niantic. They have been developing a new application for smart devices called “Pikmin Bloom,” which has been gradually distributed since last month. The latter is best known for developing augmented reality mobile games such as “Pokemon Go.”

About Pikmin Bloom

Pikmin are tiny creatures featured in games created by Nintendo star developer Shigeru Miyamoto.

The company for the full fiscal year through March 2022 expects a profit of 350 billion yen ($3 billion), down 27% from the previous fiscal year.