The Switch was so successful, Nintendo had to save money from advertising in order to balance supply and demand.
☆ NintendObs Event – Nintendo FY3/2017.
Net sales:
Previous forecast (A), announced on January 31, 2017: 470,000 million yen
Actual result (B): 489,095 million yen
Increase (Decrease), (B)-(A): 19,095 million yen
Increase (Decrease), in percentage: 4.1%
Operating Profit:
Previous forecast (A), announced on January 31, 2017: 20,000 million yen
Actual result (B): 29,362 million yen
Increase (Decrease), (B)-(A): 9,362 million yen
Increase (Decrease), in percentage: 46.8%
Ordinary Profit:
Previous forecast (A), announced on January 31, 2017: 30,000 million yen
Actual result (B): 50,364 million yen
Increase (Decrease), (B)-(A): 20,364 million yen
Increase (Decrease), in percentage: 67.9%
Net Income:
Previous forecast (A), announced on January 31, 2017: 90,000 million yen
Actual result (B): 102,574 million yen
Increase (Decrease), (B)-(A): 12,574 million yen
Increase (Decrease), in percentage: 14.0%
Source: Nintendo JP.
Reasons for differences
Operating profit became larger than we had assumed since the shipment volume of Nintendo Switch hardware exceeded our forecast, and due to lower-than-expected advertising expenses for we had reviewed sales promotions in consideration of the balance between demand and supply.
In addition to the increase in operating profit, ordinary profit exceeded our forecasts due to smaller foreign exchange losses than forecast. This was a result of greater depreciation of the yen against the U.S. dollar towards the end of the period, compared to our exchange rate assumptions.
Source: Nintendo JP.
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