Nintendo’s Switch is showing signs of becoming a money earner, according to Bloomberg. The company reported profit and sales that topped estimates as more people bought the new gaming machine, lifting prospects for brisk shipments during the holiday season.
Operating profit for April-June, the Switch’s first full quarter on store shelves, was 16.2 billion yen ($145 million), exceeding analysts’ average projection for 10.6 billion yen. Revenue more than doubled to 154.1 billion yen, beating the prediction for 139 billion yen.
Nintendo is betting that the Switch will fuel a new era of growth as more people embrace its dual role as a gaming device that can be used at home, or on the go. That’s also raised questions over whether the company is abandoning its two-gadget strategy of selling consoles and handheld gaming devices. While sales have been solid, analysts and investors are looking for signs that Nintendo will boost production or forecasts.
Currency gains also helped to boost profit, after the yen fell 10 percent against the euro during the quarter, adding 7.1 billion yen to the bottom line. The game maker gets about a quarter of its revenue from Europe. The shares of Nintendo rose 2.8 percent in Germany. The stock is up more than 50 percent since the Switch went on sale.
Last month, the company apologized to customers in Japan for shortages and promised to increase production, without providing a timeline or further details. Nintendo sold 1.97 million Switch units during the quarter, compared with analysts’ estimates for 1.8 million to 2 million. The company kept its forecast for 10 million shipments through March, although analysts remain more bullish, projecting 13 million shipments this.
Revenue from its smartphone business was 9.1 billion yen, down from 13.6 billion yen in the previous quarter, when it launched the profitable free-to-play title Fire Emblem Heroes. Income attributed primarily to Pokemon Go was 3.3 billion yen, down from 3.5 billion yen in the prior period.
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Following the end of the public delisting acquisition offer for Telefónica Deutschland, Telefónica holds approximately 96.85% of the shares in its German subsidiary.
Infobip Shift Miami, the American version of the Croatian developer conference, this week brought together a diverse technology-sector audience on the shores of Florida.
