Strong Yen Undercuts Nintendo’s Profit Forecast, Switch Performance Is Last Hope

Nintendo just unveiled its newest home console/portable gaming unit called “Switch” and it would seem that the Japanese gaming company is crossing its fingers for huge sales numbers over time for several reasons. The biggest among them is how the strong performance of the Yen is undercutting Nintendo’s overseas profit forecast, at least for the last quarter of the fiscal year.

Despite not having substantial ownership of the smash hit Pokemon Go app, Nintendo is still expected to rake in some huge profit from the game, Reuters reports. Unfortunately, a strong Yen is threatening to reduce the significance of the incoming revenue, which forced Nintendo to lower expectations via annual profit outlook last night.

Investors have been riding the rollercoaster ride that was started by the hit app by Niantic Labs, with many feeling worried about Nintendo’s plans involving mobile titles. According to Nintendo President Tatsumi Kimishima, however, investors will be given plenty of reasons to celebrate in the future as the company is intending to focus more on the mobile industry.

"We expect our mobile gaming business to become a pillar of our profit," Kimishima said. "But our main focus remains on seeking synergies from hardware and software."

This plan pertains to the future. For now, Nintendo is pinning its hopes for strong earnings during the last fiscal year when the Switch launches on March, Ars Technica reports. The company is expected to ship a little over 2 million units during launch day, which is expected since the date is after the holidays.

Compared to the Wii U’s 3.06 million launch numbers, it might seem that Nintendo is aiming low with its latest console offering. However, considering that Switch will be selling for only a month during the quarter, this comparison is moot.

Kimishima is also assuring investors that, unlike the Wii U, the Switch won’t put Nintendo in the red. Even so, the console is not expected to have much of a financial impact until deep into 2017.