Get exclusive updates on Nintendo Co Ltd for free!
Stay updated with the latest Nintendo Co Ltd news by subscribing to our myFT Daily Digest email, sent to your inbox every morning.
In the gaming world, novelty is essential for success. When a new console is released, it drives hardware and software sales. Nintendo, known for its long-standing console, pleasantly surprised investors by surpassing earnings expectations in the first quarter of the financial year. Operating profits reached a record high of ¥185.4bn ($1.3bn), with sales increasing by an impressive 50% to ¥461.3bn.
This exceptional financial performance can be attributed to The Super Mario Bros. Movie, which broke global box office records and significantly boosted licensing royalties for Nintendo. The movie’s success led many viewers to develop an inclination to play a Mario game, resulting in increased sales of the Nintendo Switch console, despite it being one of the oldest models on the market.
Continuing their streak of success, Nintendo recently launched The Legend of Zelda: Tears of the Kingdom, which has achieved strong sales, particularly in the UK. This success is advantageous for Nintendo as it saves on development costs by capitalizing on the popularity of their existing console models.
An aging console does pose a risk to future profits, especially during the peak Christmas shopping season. Shoppers tend to gravitate towards newer models from competitors like Sony and Microsoft. However, despite this concern, Nintendo shares have seen a 15% increase this year, though it lags behind the performance of Sony. Interestingly, Nintendo trades at just a tenth of Sony’s value on a forward earnings basis, despite the enormous popularity of this year’s Mario and Zelda releases.
Currently, consoles and games account for 92% of Nintendo’s group sales, making it crucial for the company to continue to innovate and produce compelling sequels to maintain shareholder returns. Subscribers can receive alerts whenever Lex articles are published by clicking “Add to myFT” at the top of this page, above the headline.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
