Nintendo announced its financial results for its third fiscal quarter ended December 31, with hardware sales of the Switch hitting 4.82 million units.
Nintendo on Tuesday reported weaker-than-expected top and bottom results for its fiscal third quarter, slashing its forecast for the Switch console ahead of the release of its succesor. Nintendo last month teased the Switch 2 in a trailer showing off the hardware.
Japan's Nintendo cut its operating profit forecast on Tuesday by 22.2% to 280 billion yen ($1.8 billion) for the financial year ending March.
Nintendo has revealed the Nintendo Switch 2, featuring a larger screen, improved Joy-Con controllers, and backward compatibility with the original Switch's game library. Nvidia will supply a new chip, leveraging DLSS AI software to boost resolution and frame rate, enhancing performance and reducing game production costs. The new Mario Kart game, expected to launch with the Switch 2, showcases enhanced graphics, larger tracks, and support for up to 24 players.
Market players gravitated to Nintendo (NTDOY 3.26%) stock at the close of the trading week following the initiation of coverage by a major bank. This helped push the storied video game company's stock more than 3% higher on Friday, easily beating the S&P 500 index's nearly 0.3% decline.
Nintendo (NTDOY 1.73%) stock is gaining in Thursday's trading as investors and analysts are warming back up to the prospects for the company's recently unveiled Switch 2 console. The Japanese video gaming giant's share price was up 1.6% as of 12:10 p.m.
Nintendo (NTDOY 2.59%) stock rose 2.5% through 11:45 a.m. ET Wednesday after the Japanese video game giant confirmed that it will be releasing a successor to the popular Nintendo Switch gaming console later this year.
Nintendo Switch 2's reveal led to a -5.1% stock drop. I am shifting from 'neutral with positive inclination' to 'completely neutral' on Nintendo. JPY fluctuations impact Nintendo's USD performance as well as reported earnings. With hit-console Nintendo Switch at the end of its 8th year and earnings declining sharply, it was about time for an official next-gen announcement.
Serkan Toto, CEO of Kantan Games, says Nintendo will have "no problem" selling the Switch 2 in the first year and adds that he is more "concerned" about subsequent years of sales.
Nintendo showed off its new Switch 2 console in a video trailer Thursday, featuring a bigger display and joy controllers. ➡️ Nintendo said its long-awaited new Switch 2 hybrid will be available this year, as the company looks to breathe new life into its struggling hardware business.
Nintendo stock fell sharply on Friday, after having rallied to a record high, as the company was coy about its plans for the Nintendo Switch 2 gaming device.