Earlier today, Nintendo released their financial results for the fiscal year ending 31 March 2020.
Within the documents, Nintendo explained in greater detail how their company is being affected by the ongoing Coronavirus situation. Although they are currently seeing a bit of recovery from the delays caused by the initial outbreak, Nintendo expects that there may be significant delays for their products and services should the Coronavirus situation worsen in the coming months.
You can check out the key highlights regarding this below:
- Impact on parts procurement, production, and shipments
- It appears that delays in production and shipping are gradually recovering.
- However, Nintendo may be affected if there continue to be issues involving the procurement of necessary components.
- In addition, if the impact of COVID-19 is prolonged or worsens further, it may disrupt the product supply.
- Impact on consumption activities
- There are restrictions on sales channels in each country due to measures to prevent the spread of the virus including restrictions on movement outside the home and closure of retail stores, and this effect may be prolonged.
- Also, if physical distribution is suspended, Nintendo will not be able to sell hardware or packaged software through e-commerce (electronic sales transactions).
- In addition, there is a possibility that provision of those services offered via Nintendo’s network may be suspended in the event that they are no longer able to maintain the stability of their network systems.
- Impact on research and development
- If the effects of COVID-19 are prolonged or worsen further, development schedules may be impacted due to the difference in development environments between working from home and in the office.
- In particular, the impact to overseas subsidiaries and other affiliated companies involved in development is anticipated to be even more difficult to predict than within Japan.
- As a result of these factors, the company may not be able to proceed with the release of Nintendo products and the start of services as planned. This is also true for other software publishers, so it may not be possible to provide game content on Nintendo platforms as planned.
- Impact of exchange rate fluctuations
- Changing circumstances in different countries due to the effects of COVID-19 may cause exchange rate fluctuations that could impact their financial results.
What do you think? Let us know in the comments.