Nintendo is a company that has put out some fantastic games, like Super Mario and Pokemon, but it has been experiencing some losses in the present.
The new gaming system, Switch, is well known for being a hybrid system that transforms between a console system and a hand held system. It has been gaining popularity, which is to the benefit of their franchise.
Nintendo’s quarterly losses have been trimmed by the popularity of the Switch. The company expects to sell another 10 million Switch consoles by the end of the current fiscal year, or March 2018.
There was a loss between January to March of $3.5 million, which was actually an improvement from their 215 million loss that occurred in the previous year.
One of the biggest competitors for this video game giant is smart phones.
They are calling the profits from the Switch a ‘promising start’ but hope to also increase profits through the sale of their hand-held 3DS.
The company’s January-March loss was 394 million yen ($3.5 million), improved from a 24 billion yen loss a year earlier. Quarterly sales jumped to nearly 178 billion yen ($1.6 billion) from 79 billion yen. Nintendo has lagged amid competition from smartphones, and also at times has been slammed by an unfavorable exchange rate. A strong yen cheapens the value of overseas earnings of Japanese exporters like Nintendo.
In the fiscal year that ended in March, Nintendo’s profit jumped more than six times from the previous fiscal year to 102.6 billion yen ($924 million), up from 16.5 billion yen. But that result included extraordinary income from the sale of part of Nintendo’s stake in the Seattle Mariners. Nintendo, which also makes the 3DS portable console, is projecting its profit for the fiscal year through March 2018 at 45 billion yen ($405 million).
Nintendo said the Switch was off to a “promising start,” with consumer demand strong for its “The Legend of Zelda: Breath of the Wild” and “1-2-Switch” games. Many new machines do well initially as hard-core fans tend to buy them. Then sales taper off. So the test for Nintendo is how long the momentum will persist. It is promising Switch games that include “Mario Kart 8 Deluxe,” which goes on sale in April, “ARMS,” in June and “Splatoon 2” in July. “We aim to stimulate the platform and expand sales going into the holiday season this year,” it said. Nintendo has also begun to offer games for smartphones, such as its smartphone action game “Super Mario Run,” reversing its earlier policy of shunning them.