Nintendo Stock Falls Over Lower Switch Sales Target

The FT from the end of January:

Nintendo shares dropped more than 9.3 per cent on Friday after the Kyoto-based games company cut its full-year forecast for 20m shipments of the Switch console — an outlook that analysts had warned was too ambitious.
The company was unable to prevent the battering of its shares throughout Friday’s trading session with a strategy briefing where the company’s new chief executive, Shuntaro Furukawa, laid out plans for a Nintendo-themed Hollywood movie, theme park rides and a dedicated store in central Tokyo just a few kilometres from the main stadium for the 2020 Tokyo Olympics.

Make no mistake, Nintendo has great IP -- some of the best in the world -- but come on, these ideas just seem like child's play.

It's not all bad news though:

Nintendo’s plunge on Friday came despite the company logging ¥158.6bn ($1.5bn) in operating profits for the October to December period — the highest quarterly showing in nine years. Profits were driven in large part by record-breaking sales of games, with two pre-Christmas titles — Super Smash Brothers Ultimate and Pokemon: Let’s Go — breaking the magic 10m sales barriers in the space of just a few weeks.

The sales miss is unfortunate -- but also predictable? -- but the profits mean Nintendo can keep pushing forward without too much worry. For now.


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