Nintendo shares fell 9% after financial report

Before Nintendo shared its financials for the last quarter, the company’s shares fell 8.8% – the biggest drop in two years.

According to Bloomberg analysts, the situation is due to the fact that the company’s quarterly profit does not meet expectations. In addition, there is concern that the return of the world to its normal state after the pandemic will affect further consumer demand – it will decline.

Nintendo recalled that semiconductor shortages and logistics problems still affect console production. Thus, the fall in sales of Switch Lite can be attributed to a reduction in inventories in Europe and the United States – last year the situation was much better.

Hideka Yasuda, an analyst at Ace Research Institute, noted that last quarter’s Nintendo games failed to “patch the hole” left by the mega-successful Animal Crossing: New Horizons. The company faces another difficult period ahead, which could turn out to be even worse.

The next long-awaited game from the Japanese giant – the sequel to The Legend of Zelda: Breath of the Wild – will not be released until 2022. Nintendo is currently looking forward to the successful launch of the new Switch model with a large OLED screen, which will launch on October 8th.

Recall that the announcement of the new Switch caused a negative reaction from many investors – after that, the company’s shares also fell by 15%.

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Alexandr Ivanov earned his Licentiate Engineer in Systems and Computer Engineering from the Free International University of Moldova. Since 2013, Alexandr has been working as a freelance web programmer.
Function: Web Developer and Editor
Alexandr Ivanov

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