Japanese video game maker, Nintendo, has reported a 55% drop in net profit for the three months ended June. The company cited lower sales of its flagship Switch console as the primary reason for the decline in profit.
Nintendo’s net profit for the quarter was 29.7 billion yen ($270 million), down from 66.8 billion yen in the same period last year. The company’s revenue also fell by 10% to 172 billion yen.
The decrease in profit comes as a surprise to many, as Nintendo has been experiencing strong sales of its Switch console since its release in 2017. However, during the most recent quarter, the company sold 4.45 million units of the Switch, down from 5.68 million units in the same period last year.
In addition to lower hardware sales, Nintendo also saw a decrease in software sales during the quarter. The company sold 45.3 million units of software, down from 51.1 million units in the same period last year.
Despite the decline in profit, Nintendo remains optimistic about its future prospects. The company is set to release several highly anticipated games in the coming months, including the latest installment in the popular Legend of Zelda series. Additionally, Nintendo is planning to release a new, more powerful version of the Switch console later this year, which could help boost sales.
Overall, while Nintendo’s recent financial results may be disappointing, the company is confident that it can bounce back in the coming months with a strong lineup of games and new hardware releases. Investors and fans alike will be eagerly watching to see how Nintendo performs in the second half of the year.