Nintendo Co. reported first-quarter profit that missed the lowest analyst estimate as it marketed a sluggish lineup of new games to consumers.
Operating income slid about 10 percent to ¥27.4 billion in the three months ended June, the Kyoto-based company said in a statement on Tuesday. That's less than the ¥37.2 billion average of analyst projections compiled by Bloomberg. Nintendo left its full-year profit and revenue outlooks unchanged.
Nintendo in April put out earnings projections that fell far below analyst estimates despite a strong lineup of games for later this year and expectations for stronger hardware growth. The launch slate includes a new Legend of Zelda game, Luigi's Mansion and two Pokemon games. The company is also releasing a cheaper version of its portable Switch gaming console and plans to enter the Chinese market. The anticipation has driven up Nintendo's shares 39 percent this year.
"While the first quarter is pretty light, there is a lot to look forward to in the rest of the year," Jefferies Group senior analyst Atul Goyal said ahead of the earnings release. "Switch Lite and China should also add to the sales."