Nintendo Profits Dive 36%; Company Relying on Mobile Game to Counter
These are crucial times for Nintendo, their first mobile app, Miitomo did not impress a lot of people because it was not a conventional game based on their iconic franchises and characters, and now the lack of better game releases has pushed their quarterly profits down by a massive 36 percent.
The company’s earnings call for the third quarter has been rather bleak owing to the low profits amounting to ¥29.1 billion ($241.3 million) as compared to ¥45.2 billion that they had made last year in the comparative quarter.
In terms of overall revenue, the company went down 18% to ¥221.5 billion from ¥271.5 billion for the comparative period last year.
While ups and downs are a norm in business-making, this is a pretty major slump and one would expect the company to counter it with something really strong. However, the best that chief executive officer of the company, Tatsumi Kimishima came up with was their second mobile app.
Thankfully, he promises that “the second game won’t be another communication app,” and went on to reveal that Nintendo plans “to adopt one of [their] characters that fans are very familiar with” while developing the game.
We are not sure which character they are going to bring to the mobile gaming world but Super Mario Brothers, The Legend of Zelda, Donkey Kong anyone from there would be awesome.
It is exciting that the next mobile app DeNA makes with them will be a proper game, but was this the best that Nintendo could offer after telling the shareholders that the company profits are down by 36 percent?
Agreed they are counting heavily on Nintendo NX to sort things out when it releases but right now no one knows when that will happen or what it will do. Also, the earnings call of any company is supposed to be the ideal time to talk about what is the best a company is going to do in the next financial period – they have the share prices to worry about – and their latest response worries me.