Nintendo reported a strong quarter of profitability, with sales of 349.5 million yen ($2.38 billion) and an operating profit of 118.7 million yen ($809.6 million). This is up 15.9 and 18.5 percent over last year, owing mostly to a cheaper yen, sales outside of Japan, and the release of Splatoon 3.
However, the business is less optimistic about Switch console sales, decreasing its prediction from 21 million to 19 million by 2022. However, it does not believe this will have a significant impact on profitability, with sales expected to be 50 billion yen higher at 1.65 trillion yen ($11.25 billion) and operating profit expected to be unchanged at 500 billion yen ($3.4 billion).
According to Nintendo, there has been a progressive improvement in the availability of semiconductors and other components, as well as a “recovery trend in Switch hardware production.” It did, however, cut its prediction based on current sales, with the weak yen making up the difference in revenue and profit.
It also explained what this would entail for anyone looking to purchase a Switch for the holidays. “We will try to provide as many consoles as possible to customers in every part of the globe by consistently front-loading manufacturing and adopting optimal delivery methods in preparation for the Christmas season.”
This will be aided by the release of a slew of new games. It also launched Bayonetta 3 in October, Pokémon Scarlet and Pokémon Violet in November, Fire Emblem Engage in January 2023, and Kirby’s Return to Dream Land Deluxe in February 2023, in addition to Splatoon 3.