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Nintendo’s quarterly profit fell by 10% Switch Lite launch

TOKYO (Reuters) – the Japanese gaming company Nintendo Co Ltd on Tuesday reported a 10 percent drop in quarterly profit, far ahead of the market requirements, such as an increase in the costs of dull to stronger sales of its hybrid-home-portable console for the Switch.

A participant testing out a new game, it’s the real Switch, on the first day of E3, the annual video games expo, reveal of the latest gaming software and hardware in Los Angeles, California, USA, 11 June, 2019 at the latest. REUTERS/Mike Blake

The operating profit for the three months to June was 27.4 billion yen ($252.26 million), compared with the 40 billion yen average of 10 analyst estimates compiled by Refinitiv.

The Kyoto-based gaming company said that it sold 2.1 million Switch to consoles in the quarter, bringing the total installed base to 36.9 million units. It maintained its full-year sales forecast of 18 million units for the year ending in March.

Looking to offset the declining sales of the aging 3DS handheld console, and you want to expand beyond the core fan base, Nintendo will be in the September launch of the Switch-Lite unit, which cuts the charge per unit of the Switch, the TV-station and a detachable controller.

The Switch, the Lite will retail in the United States is $ 199.99, compared to the Switch for the price of $299.99. Nintendo has forecast sales of the new device.

The launch comes as the famous mystery of the Kyoto-based gaming company, is showing signs of a more open, tying up with the mobile game developers for your smartphone, based on titles such as Mario Kart Tour, which is due to be released this summer, in partnership with DeNA Co., Ltd.

While some analysts have said could prove to be a breakout hit, the early songs, for Nintendo’s most recent mobile title, Dr. Mario series, developed by Line Corporation, have been drawn in earlier releases, if Mario is Running, the data from the Sensor, the Sensor Tower, let’s see.

Nintendo’s plans for the expansion of a partnership with China’s largest games maker Tencent Holdings Ltd., which focuses on the sale of the power Switch in this country, prevented the console market. The two companies are set to exhibit at Shanghai’s ChinaJoy gaming expo, in the beginning of the month of August.

Last week, Tencent said it would work on the Nintendo-backed Pokemon Company has a new game in which you need a partner who is able to take advantage of the popularity of the Japanese character in China.

On the Switch, and the analysts are looking at a release date for the device, and the first Pokémon games, Pokémon, Sword, and Attack with Shield – in November, in a further push for the sale.

Nintendo’s diversification drive as the global gaming market is facing a shake-up, as new entrants like Google are a parent, Alphabet, Inc., Apple Inc. will move into the game streaming service.

Many analysts, however, said fans of the games will continue to launch a traditional console makers such as Nintendo and Sony Corp., with exclusive games, with well-established characters.

Nintendo’s shares closed up 0.7 percent ahead of its earnings announcement. The price of the stock has increased by 39% year-to-date.

Report by Sam Nussey; Editing by Christopher Cushing

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