The videogame industry struggles to regain momentum after a pandemic-driven boom
- Nintendo plans to release a successor to the Switch console
- The company expects to sell 13.5 million Switch consoles this fiscal year
- Nintendo’s net profit is projected to drop 39% this year
- The videogame industry is facing challenges after a pandemic-driven boom
- Nintendo is diversifying its income streams through movies and other forms of entertainment
Nintendo has announced that it will release a successor to its seven-year-old Switch console, following weaker device and game sales. The company expects to sell 13.5 million Switch consoles this fiscal year, down from the previous year’s 15.7 million units. Nintendo’s net profit is projected to drop 39% to 300.00 billion yen ($1.95 billion) and revenue to fall 19% to Y1.350 trillion. The videogame industry is facing challenges in recovering from the pandemic-driven boom of a few years ago. To diversify its income streams, Nintendo is leveraging its popular characters and game series in movies and other forms of entertainment.
Factuality Level: 7
Factuality Justification: The article provides specific information about Nintendo’s sales expectations, profit forecasts, and plans for new hardware. It includes details about the company’s diversification efforts and recent successes. However, the article lacks depth in analyzing the reasons behind the profit drop and the industry trends affecting Nintendo.
Noise Level: 3
Noise Justification: The article provides relevant information about Nintendo’s sales forecast, profit expectations, and plans for a successor to the Switch console. It also touches on industry trends and Nintendo’s diversification efforts. However, there are some repetitive details and unnecessary information about other companies like Sony and Microsoft that do not directly contribute to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: Nintendo
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses Nintendo’s financial performance and its plans to release a successor to the Switch console. There is no mention of any extreme events or their impact.
Public Companies: Nintendo (7974), Sony Group (6758), Microsoft (undefined), Activision Blizzard (undefined)
Private Companies: Illumination
Key People: Kosaku Narioka (Writer)
Reported publicly:
www.wsj.com 
