Japanese gaming company Nintendo on Tuesday reported a 10 percent decline in quarterly profit, far wide of market expectations, as a rise in costs dulled stronger sales of its hybrid home-portable Switch console.
Operating profit for the three months through June was JPY 27.4 billion ($252.26 million), versus the JPY 40 billion average of 10 analyst estimates compiled by Refinitiv.
The Kyoto-based gaming company said it sold 2.1 million Switch consoles in the quarter, bringing the total installed base to 36.9 million units. It maintained its full-year sales forecast of 18 million units for the year ending March.
Looking to offset declining sales of its ageing 3DS handheld console and expand beyond its core fanbase, Nintendo will in September launch the Switch Lite device, which cuts unit costs by dropping the Switch’s TV dock and detachable controllers.
The Switch Lite will retail in the United States at $199.99 (roughly Rs. 13,700), compared with the Switch’s price of $299.99 (roughly Rs. 22,600). Nintendo did not provide a sales forecast for the new device.