Sales Up, But Nintendo’s Profits Have Nearly Halved

The latest financial figures from Nintendo’s recent statements painted a rather nice picture when it came to sales numbers—but some additional information and analysis has revealed that all isn’t quite as peachy as those initial statements suggested.

Even with overall sales having increased, and a 2.4% increase in revenue, the company’s profit has nosedived by 45.7%. That’s an enormous number when compared to the same 3-month period in 2018.

In June 2018, the 3-month window ended with a profit of 30.6 billion yen (or $282 million), with only 16.6 billion yen ($153 million) in June 2019’s window. According to analysts, this decline can be accounted for by the exchange rates having cut directly into profits. According to Nintendo, “foreign losses of 12 billion yet and other factors” are responsible for this drop, which isn’t exactly a factor the company can control or necessarily predict with entire accuracy ahead of time.

Nintendo isn’t sleeping on this information, either—they’ve already launched an investigation into potential ways to mitigate the effects of foreign cost increases in production and the fluctuating exchange rates. Whether these methods are successful… guess we’ll find out at the end of the next quarter.

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Micah
Author: Micah View all posts by
Micah has been playing games since his first pong machine, and has been writing for as long as he could grip a pencil and not drool on the paper. So, for about a week.

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