Even the slipperiest of bananas couldn't derail Nintendo's quarterly earnings; on Tuesday, the Japanese video game developer increased its full-year profit forecast.
What does this mean?
The yen has dropped to a 30-year low versus the US dollar, which is fantastic news for a company that generates 80% of its sales outside of Japan and pays the majority of its software production costs in yen. The currency gods are currently smiling upon Nintendo. In fact, the good news is so great that you could forget that Nintendo sold less Switch consoles in the most recent quarter than it did during the same period in 2017. See, while cutting this year's prediction for Switch sales by 10%, the company actually posted a stylish 18% increase in operating profit for the third quarter and increased its full-year profit outlook by a (Princess) peachy 18%.
Source: Nintendo
Why should I care?
According to some observers, the Nintendo Switch's next Pokémon game, which is set to release later this month, would help the console's sales soar once more whenever a popular game is released. But even while Nintendo claims that demand for the venerable hardware is still high, the Switch has been on the market for six years, and as supply constraints loosen, analysts are constantly monitoring for signs of faltering sales. Having said that, a speculated new, potent Nintendo Switch Pro might increase the company's sales by the monetary equivalent of a super-fast Mario Kart Rocket Start.
Source: Nintendo
Zooming out: Sony levels up.
Since the PlayStation 5's arrival in 2020, Nintendo's Japanese rival Sony has had difficulty creating the device, but it now appears that things are improving for the company. Sony declared last week that last quarter's production went better than anticipated and that it is now hoping to surpass its yearly sales goal. That was well received by investors, who raised Sony's stock by 7% on the news.
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