Wednesday , January 27 2021

Nintendo's Switch is trying to keep up with Sony's older PS4



Five-year PlayStation 4 delivers more energy and profit growth – for Sony Corp. compared to much more recent Switch Nintendo Co.

Quarterly numbers of two video game competitors have shown that Sony has benefited from the best ever console cycle, while Nintendo is seeking to expand the sale of its gaming system or home. Sony has once again raised its prediction of the outcome, the results showed last week, while Nintendo missed the ratings and kept its predictions intact.

Gaming machines usually follow the predictable cycle of accelerated growth, price cuts and retirement. But Sony reveals this pattern with a strong collection of gaming titles for the holiday shopping season, including the home-made Spider-Man, which puts PlayStation 4 for the finest year. Without a fresh crop of new gaming titles and only one planned for a holiday, Nintendo has kept its forecast for 20 million switching items unchanged during the fiscal year.

"PlayStation is doing great, Man-spider in the second quarter sold as crazy, "said Kazunori Ito, an analyst at Morningstar Investment Services in Tokyo." On the surface, it's hard to say that this is a good quarter for Nintendo. "

Investors have noticed: Sony shares this year rose 15% above the results, and Nintendo is no longer.

In fact, Sony mimics the Nintendo player's side, stretches the games created by their own studio; these first-class titles are also more profitable. PS4 exclusive God War sold 3.1 million copies in the first three days of April, while last month Man-spider reached a record 3.3 million copies over the same time period. Nintendo counts for one title, the latest repetition Super Smash Bros.. for the switch in order to maintain momentum in the last three months of the year.

"Sony very well uses the first customer's titles – along with subscription services like PS Plus, it increases PS4 sales and extends the life cycle," said Ito. "It will be painful for Nintendo without more first-class games."

Sony's December quarter also strongly points to third party games with analysts predicting record sales Red Redemption II after it became the best review of the year, according to Metacritic. Call of Duty: Black Ops set a new PlayStation record for first-time digital sales, the other big titles coming in that quarter include Battlefield V, Fallout 76 in Only cause 4.

Sony's operating profit for the quarter was 239 billion yen ($ 2.1 billion), which exceeded the average analyst's score of 205 billion yen. More than a third of this came from the PlayStation division, where profits rose 65 percent from year to year to 91 billion yen. Total revenues amounted to 2.2 trillion yen.

For the current financial year, a Tokyo-based company increased its business profit forecast to 870 billion yen from a previous forecast of 670 billion yen. While PlayStation works well, it is also worth mentioning that the music company accounts for about half of this increase, thanks to the purchase of EMI Music Publishing worth $ 2.3 billion this year. The deal adds a catalog of 2.1 million songs from Beyonce, Carole King and other artists. Sony's total sales prospects rose slightly to 8.7 trillion yen.

Nintendo's quarterly profits of 31 billion yen and revenues of 221 billion yen have missed market forecasts. This raises concerns about whether Nintendo can reach the target goal of the Switch. The Kyoto-based company has kept its half-yearly forecasts.

"It was a quiet quarter without many of Nintendo's great editions," said Hideki Yasuda, senior analyst at the Ace Research Institute. "Achieving the switch's goal depends on the holiday quarter, especially the new one Super Smash Bros.. game. "

The battle between Sony and Nintendo is also a test for new corporate executives who both took over just a few months. Sony Kenichiro Yoshida, the former chief financial officer who advanced to the executive in April, set up a low stick, which initially brought investors. Nintendo Shuntaro Furukawa represented more generational shifts when he assumed the post of president in April and pledged to "fully develop the company".

"It's very important that we continue with the installation of new software," Furukawa told reporters after a pay-per-view press conference. – Bloomberg


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