Technology - - Jan 31,2017
Nintendo has reported its first quarterly profit in a year, enjoying the success of its video game Pokémon go and a fall in yen’s value.
The Japanese gaming giant recorded profits of 64.7 billion yen ($569) in the final quarter of 2016. This is much more than the anticipated profit of 20 billion yen. The success of its mobile-only Pokémon Go and Super Mario Run games was supplemented by a healthy sale of Pokémon titles for its 3DS handheld devices.
Nintendo will also launch its newest console, named Switch, in March this year.
For the fiscal year, Nintendo’s profit would be recorded at 90 billion yen in comparison to the previously anticipated 50 billion yen, Nintendo said in a statement. However, revenue for the quarter fell 21 percent to 174.3 billion yen, while the full-year outlook was kept at 470 billion yen.
In the last quarter, the Kyoto-based company sold more than 14.7 million copies of new Pokémon games for their 3DS system, helping boost up the momentum of the aging hand- held console.
Meanwhile, the Wii U, which the company has almost discontinued production of, recorded a sale of 200,000 units, despite failing to succeed in the market. It was largely outsold by Sony’s PS4 and Microsoft’s Xbox One.
Nintendo had gained a net profit of 29.1 billion yen on a revenue of 221.5 billion yen for the same quarter a year ago. Analysts had forecasted a net profit of 34.2 billion yen on a revenue of 177.5 billion yen.
According to market analysts, the exchange rate contributed more than 41.3 billion yen to the company, whose operating profit was over 32.3 billion yen in the three-month period through December.
Nintendo benefitted from the rising dollar like most other Japanese exporters. Its overseas profits stood at much more when repatriated as the firm made around 75 percent of its sales outside Japan.