Nintendo Annual Net Profit Solid But Outlook Cautious

Nintendo on Tuesday reported a solid net profit for the financial year to March on the strong performance of its blockbuster Switch console, but issued a cautious forecast. Uncertainties linked to the global chip shortage and potential production and transport delays caused by Covid-19 lockdowns could hit future profits, the Japanese gaming giant warned. The company, which has benefited from a string of popular titles including "Pokemon Legends: Arceus", posted a 2021-22 net profit of 477.7 billion yen ($3.7 billion), down just 0.6 percent on-year. But it expects net profit for the current financial year of 340 billion yen, a yearly drop of around 29 percent. Nintendo's profits were sent soaring by a boom in demand for video games during the pandemic and the runaway popularity of the Switch, which was launched in March 2017.