A victim of its own success. Switch 2 sells so well in Japan that Nintendo is having problems

A victim of its own success. Switch 2 sells so well in Japan that Nintendo is having problems

Новости 0 Источник: Tech Advisor
18:48

Nintendo's financial paradox.

Sales of the Nintendo Switch 2 hybrid console in Japan have exceeded expectations, but paradoxically this is working against the company's financial performance. This was stated by Nintendo President Shuntaro Furukawa.

According to the head of Nintendo, strong demand for Switch 2 in the domestic market negatively affects operating and gross profits. The reason lies in currency fluctuations: the main components for the production of the console are purchased for US dollars, while in Japan the devices are sold for yen, the exchange rate of which continues to weaken. As a result, the company actually loses part of the profit on each console sold.

One of the investors directly asked Furukawa if he understood correctly that the profitability of Switch 2 is decreasing due to the continued fall of the yen. In response, the president of Nintendo confirmed that in the current situation on the foreign exchange market, higher than forecast sales of equipment in Japan are indeed putting pressure on profits.

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18:48
Источники: Nintendo

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