Nintendo's latest financial report gave us some good news; Switch has sold more than 50 million units in three years, digital revenue has increased and new IP Astral Chain – Finding an audience. It has been a strong indication that Nintendo has increased its forecast for this financial year, and expects it to sell more of its switch switches than ever before.
However, you can't please everyone, too Financial times has released a low-cost Nintendo financial audit. We described the Japanese executive as "slightly more conservative", pointing out that, while its third-quarter operating profit increased 6 percent to $ 1.5bn, it dropped due to earlier expectations.
"The Japanese gaming company should still be familiar with the fast-moving market away from consoles," he continues, before admitting that the switch "has done well so far" and is "a major reason for Nintendo's shares to go up last quarter."
However, the Financial Times notes that the increase in sales comes, in part, from the introduction of switchch Lite, citing a 13 percent drop in sales of the first console version over the past nine months:
Switchch, who is three years old in March, is in desperation. Rivals are introducing new smartphones and issues with the latest features, while cloud computing poses challenges for the sector.
While mobile gambling has been briefly described in print as a possible way to increase revenue, it notes with caution that margins are far below that of the gaming market.
China, the market that Nintendo has just entered, is also known as an expansion boom – but the Financial Times doesn't see much excitement there, even though it says the launch was "temporary" and that the game is only one – labeled incorrectly as Super Smash Bros. (actually New Super Mario Bros. You are Deluxe) – allowed to be released.
In short, the Financial Times thinks Nintendo's lack of a new hardware (Switch Pro is yet to be officially confirmed, lest we forget) it will bite it back in 2020, saying:
Aside from the new bidding included this year, Nintendo shares look like pricing. They trade in profits up to 22 times, the money paid to peers. The release from the launch of the new mobile game is more than priced on it. It is time for investors to look for opportunities to score points in the area.
Admittedly, the main reason for the publication is there to advise people working in the financial sector, and with Nintendo's shares already so high after its recent success, you could argue that there is only one way for them to leave here: down. If you are an investor, arguably not the best time to put your bet on Nintendo stock, as it is unlikely to see a significant increase in value. However, this report does not seem to be true, given the wonderful news we have today.
What does the report do? Do you think the Financial Times has a point? Let us know about the idea.