TOKYO – Nintendo’s profit in the April-June quarter rose 28% from a year earlier on healthy demand for its games, even as sales of its console were hurt by a shortage of semiconductors.
Quarterly sales fell 4.7% to 307.4 billion yen ($2.3 billion), according to Kyoto-based Nintendo Co.
Other game makers, such as Sony Group Corp., automakers such as Toyota Motor Corp. and other manufacturers have been hurt by shortages in supplies of the chips that run most modern products.
While supply chain disruptions are largely due to the pandemic, game companies have seen a huge increase in demand from COVID-19, with people stuck at home and turning to games for entertainment. As pandemic precautions eased, that sales surge petered out.
Hit games also boosted console sales, such as “Animal Crossing: New Horizons.” Among the games that released well last quarter were “Nintendo Switch Sports,” which sold 4.84 million units, and “Mario Strikers: Battle League.”
Previously released games with strong sales include “Kirby and the Forgotten Land” and “Mario Kart 8 Deluxe.” Sales for downloaded digital games were also strong.
Nintendo sold 22% fewer Switch consoles in the most recent quarter, at 3.4 million units, compared to the same period last year. Cumulative sales topped 111.08 million units.
The company expects to sell 21 million Switch machines for the fiscal year. More than 100 million users played on the Switch last year, according to Nintendo.
The company kept its profit forecast for the fiscal year through March 2023 unchanged at 340 billion yen ($2.6 billion).
Yuri Kageyama is on Twitter: https://twitter.com/yurikageyama