Nintendo Sees Net Profit Fall For 2nd Straight Year

Nintendo Co. said Tuesday its net profit for the year ended March fell 9.4% from a year earlier to 432.77 billion yen ($3.2 billion), the second straight year of decline, pressured by a fall in its Switch game console sales, Kyodo News reported.

Photo Insert: Sales of Switch software saw a smaller decline of 9% to 213.96 million units thanks to solid demand for popular titles.

Operating profit decreased 14.9% to 504.38 billion yen on sales of 1.60 trillion yen, down 5.5%. The Japanese gaming giant sold 17.97 million Switch console units last fiscal year, down 22.1% from 23.06 million units a year earlier.

A production bottleneck due to a chip shortage and weaker-than-expected demand during the year-end shopping season led to the drop in sales, it said.

Sales of Switch software saw a smaller decline of 9% to 213.96 million units thanks to solid demand for popular titles, including "Splatoon 3" and the "Pokemon" series.

The lackluster results came after Nintendo logged a record net profit of 480.38 billion yen for fiscal 2020 as lockdowns and restrictions on outings during the coronavirus pandemic boosted game sales worldwide, Mainichi Shimbun also reported.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic