Nintendo Shares Fall After It Projects Weaker Switch 2 Sales

By Kosaku Narioka

Nintendo shares fell sharply after it projected weaker Switch 2 sales and lower net profit for the fiscal year that began in April.

Shares were recently 6.3% lower at 7,181 yen, equivalent to $45.83, on Monday in Tokyo after falling as much as 10% earlier.

The Japanese videogame maker said after Friday's market close that it projected to sell 16.5 million Switch 2 consoles, lower than the 19.9 million units sold in the previous fiscal year.

Nintendo expected fiscal-year net profit to drop 27% to Y310.00 billion as revenue is estimated to decline 11% to Y2.050 trillion.

The videogame maker nearly doubled revenue and sharply increased net profit for the fiscal year ended March, thanks to the new device, which it began selling in June.

The company attributed the projected drop in Switch 2 sales to strong first-year sales and price increases.

Nintendo also said Friday that it would raise Switch 2 console prices in Japan, the U.S., and some other regions. The device will cost about $500 in the U.S. from September, up from about $450 currently.

The product price increase comes as consumer electronics makers are facing rising memory-chip prices.

For the year ended March, the videogame maker's net profit climbed 52% to Y424.06 billion, beating analysts' estimates. Revenue rose 99% to Y2.313 trillion.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

05-10-26 2129ET