The company’s shipments and forecasts were “disappointing,” said Morningstar director Kazunori Ito.
sony the entire games and network services unit, meanwhile, also saw an 8% drop in sales for the quarter ended December, compared to the same period a year earlier.
Of the society shares fell 6% in Tokyo on Thursday, despite an overall forecast higher than analysts.
The group’s wins have been widely attributed to its film and television division, including “licensing revenue from the Seinfeld comedy series and the success of the latest Spider-Man movie,” Nomura analyst Yu Okazaki wrote in a note Wednesday.
It now expects to sell 23 million units by the end of the fiscal year, which ends in March, down from previous projections of 24 million and 25.5 million units in November and May. last.
Nintendo’s stock closed down 2.8% on Thursday ahead of the presentation.
But the company’s overall results were broadly in line with expectations, according to Ito.
The expeditions Switch consoles were “not as bad” as the market feared, he told CNN Business.
There were also a few bright spots. Nintendo raised its software sales forecast by 10% through March to 220 million units.
This side of the business has proven to be “solid”, and derives most of Nintendo’s profits, even allowing it to slightly raise its overall financial forecast for the year, Ito noted.
Console Wars
Analysts have warned that the sale of Activision Blizzard to Microsoft could pose a serious threat to Sony, which has been competing with Xbox for decades.
With Activision Blizzard, Microsoft would add popular series such as “Call of Duty” and “World of Warcraft” to its library – along with the nearly 400 million monthly active players that come with them.
The deal would help Sony strengthen its intellectual property and make its “gaming business more competitive,” Nomura analysts wrote in a note Tuesday.
Nintendo, meanwhile, should be more shielded from competition concerns over Activision Blizzard because “people who want to play Nintendo games buy Nintendo hardware,” Ito added.
“Therefore, Nintendo may [still] differentiate its platform from others.”
— Diksha Madhok contributed to this report.
