(ANSA) - TOKYO, 07 FEB - The slowdown in demand for video games and the unfavorable exchange rate weigh on Nintendo's accounts, which is forced to revise downwards its profit estimates for the current fiscal year.
For the fiscal year ending March 31, net income should come in at 370 billion yen, equivalent to 2.62 billion euros, from initial forecasts of 400 billion yen.
The contraction in sales of the Switch console in recent months was 21.3% to 14.9 million units, in the face of the shortage of chips, a dynamic that lasted until the end of last summer.
For the fiscal year, estimates for the popular console should reach 18 million compared to 19 million expected last year.
Downsizing also by turnover, to the extent of 5.6% to 1,600 billion yen and operating profit, to 480 billion yen from 500 billion.
Estimates that rely on unfavorable calculations on the yen-dollar exchange rate - at 125 and appreciating compared to the estimated level of 135. "We have observed radical changes in consumer spending habits due to the general increase in prices, and a diversification of activities related to entertainment industry in the post-COVID-19 phase," Nintendo president Shuntaro Furukawa said at a press conference.
In the nine months between April and December, the Kyoto-based company recorded a profit that fell by 5.8% to 346 billion (2.45 billion euros) and a turnover that decreased by 1.9%.
despite this, it announced a 10% increase in wages for its employees starting in April, as a measure to fight inflation and continue to attract new talent to the labor market.
(HANDLE).