Nintendo Co Ltd on Thursday cut its full year Switch sales forecast by 6 per cent and said it is struggling to meet demand in the key year-end shopping season as chip shortages disrupt production of the hit device.
While many companies have warned of the risks posed by the global semiconductor shortage, most have stopped short of cutting targets. Toyota Motor Corp was also an exception on Thursday, cutting its vehicles sales outlook for the year to end-March.
“We can’t produce enough to meet the demand we are expecting during the upcoming holiday season,” Nintendo President Shuntaro Furukawa told a news briefing as the Kyoto-based company revised down its Switch sales target to 24 million units.
“Currently there is no sign of improvement and the situation continues to be severe so I can’t say how long it will continue,” he said.
Second-quarter operating profit tumbled 32 per cent from the same period a year earlier to 100 billion yen ($880-million), but the gaming firm lifted its annual forecast 4 per cent to 520 billion yen, helped by a weaker yen.
Sales of the Switch device – now in its fifth year on the market – slumped by a third to 8.28 million units in the six months to end September from the same period a year earlier.
There was a smaller year-on-year decline in software sales and Nintendo raised its full year software forecast by 5 per cent to 200 million units. It commonly raises targets widely seen as conservative during the financial year.
“That is with a weakening corona effect and without an epic blockbuster like “Animal Crossing” this time around,” said Serkan Toto, founder of the Kantan Games consultancy, referring to the boost from stay-at-home gaming during the pandemic.
With console gaming a cyclical business and Nintendo highly dependent on a single system, the timing of peak Switch sales is the focus of intense debate among investors and analysts.
Nintendo launched the $349.99 Switch OLED model on Oct. 8 but it remains in short supply in many markets.
Early data shows the improved model giving sales a bump. However, some observers worry that many buyers are likely upgraders rather than new customers, diminishing the potential bounce for software sales.
“Our main concern is still a lacklustre game pipeline combined with a sharply declining tie-ratio that is likely to drive earnings lower,” Jefferies analyst Atul Goyal, who has downgraded Nintendo to underperform, wrote ahead of earnings.
The tie-ratio is a closely watched indicator that refers to the amount of software bought by hardware owners.
Nintendo continues to line up high profile releases for the system, with “Pokemon” remakes launching later his month and a new title, “Pokemon Legends: Arceus,” going on sale in January.
Nintendo shares closed down 1.7 per cent ahead of earnings and have lost 25 per cent this year.
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Facebook’s struggle with Gateway Pundit highlights challenge of containing disinformation
The Gateway Pundit, a far-right news site, has used its Facebook page – with more than 630,000 followers – to post bogus stories alleging the 2020 election was stolen from former President Donald Trump. Some commenters responded with threats of violence.
After Gateway Pundit posted a June story on Facebook that included debunked claims of voter fraud in Arizona, a commenter said the governor and secretary of state should be “fed feet first through a woodchipper.” A story featuring false claims of vote-rigging in Fulton County, Georgia, drew comments on Facebook calling for an election worker to be hanged or “shot for treason.”
For years, Facebook has imposed sanctions on Gateway Pundit’s account to limit the spread of its misinformation. But Gateway Pundit still uses its Facebook page to amplify its reporting and raise money: The page features a prominent appeal asking readers to buy subscriptions to support its “battle for survival.”
Gateway Pundit’s continuing presence on Facebook illustrates the platform’s worldwide struggle to stop the spread of disinformation and to balance content-policing with free-speech concerns. Facebook has taken a barrage of criticism this year from critics and a company whistleblower who say its practices stoke anger and division to increase user engagement.
In a statement to Reuters, Facebook said it seeks to label misinformation and “reduce its spread.” The company uses fact checkers and artificial intelligence to identify false or misleading material and warns readers who try to share it. Facebook partners with about 80 organizations, including Reuters, to independently fact-check content that appears on its site.
Facebook said repeat offenders, such as the Gateway Pundit, are subject to tougher sanctions, including having their posts pushed to the bottom of users’ news feeds (the lists of posts they see), and being barred from Facebook’s content-promotion services.
But Facebook almost never removes the offending posts or shuts down the pages – that happens only in rare circumstances, such as posts pushing COVID misinformation, the company says. Sites that directly threaten violence also may be shut down, but account holders are not held responsible for comments on their pages.
Twitter has taken a more aggressive approach with Gateway Pundit, permanently suspending the @gatewaypundit account of Jim Hoft, the site’s founder and editor, as well as the account of his twin brother, Joe Hoft, a writer.
Jim Hoft declined a request for comment; Joe Hoft did not respond to comment requests.
Facebook and Twitter both have been blasted by right-leaning politicians for what they call censorship of conservative voices. Jim Hoft testified in a 2018 congressional hearing that his site’s traffic from Facebook had tanked after the platform imposed restrictions on the spread of the Pundit’s content, saying such sanctions make “book burning” look benign.
Yet Gateway Pundit’s traffic has boomed: In the wake of the 2020 election, it peaked at nearly 50 million visits a month, according to one estimate, illustrating the power of viral disinformation. Reuters found the site’s often-debunked election-fraud claims were cited in about 100 of more than 800 threatening or harassing messages sent to election officials since last November.
Facebook has long recognized Gateway Pundit as a source of false and divisive content. A July 2019 internal report on “potential misinformation and polarization risks” listed the site as one of Facebook’s “common misinfo offenders.” The report was among a cache of documents provided to the U.S. Securities and Exchange Commission and Congress by Frances Haugen, a former Facebook product manager who left the company in May and has been a leading public critic of its practices.
Reuters identified a dozen Gateway Pundit stories on Facebook that contained baseless election-fraud claims, two of which Facebook labeled as containing false information. Under four of those stories, nine Facebook users called for the execution of election workers or officials. Only one of those four stories was flagged by Facebook for containing false information.
In August, Gateway Pundit reported that a Milwaukee official had been threatened after being featured in Pundit stories alleging voter fraud. The result? Even more threats. On the site’s Facebook page, one reader commented: “There is only one punishment acceptable for traitors, being drawn and quartered.”
(Reporting by Peter Eisler; additional reporting by Jazon Szep; editing by Brian Thevenot)
PlayStation is reportedly working on its own version of Xbox Game Pass – MobileSyrup
Sony is reportedly working on its own PlayStation video game subscription service to take on Microsoft’s Xbox Game Pass, according to Bloomberg‘s very reliable Jason Schreier.
Codenamed internally at Sony as ‘Spartacus,’ subscribers would pay a monthly fee to subscribe to a library of new and classic titles. According to Bloomberg‘s sources, the service will be available on the PlayStation 4 and the PlayStation 5.
The service, reported to launch this spring, will merge PlayStation Plus and PlayStation Now under one subscription platform. PlayStation Plus is Sony’s online gaming platform that offers some monthly titles for free, and PlayStation Now lets users stream games via the internet and download select games. Bloomberg says that this new service will still be called PlayStation Plus, but the PlayStation Now brand will be phased out.
Spartacus is rumoured to feature three tiers: the first will offer a standard PlayStation Plus subscription, the second reportedly gives access to PlayStation 4 and PlayStation 5 titles and the third features a library of PS1, PS2, PS3 and PSP games, game streaming and demos.
This isn’t the first time we’ve heard about Sony’s Xbox Game Pass-like ambitions. According to David Jaffe, the God of War series’ outspoken creator, Sony has been working on a “counterpunch” to Xbox Game Pass for quite some time.
Microsoft’s Xbox Game Pass Ultimate subscription tier remains one of the best deals in gaming, especially with the addition of Forza Horizon 5 and, soon, Halo Infinite, the Xbox brand’s marquee title.
Meanwhile, Xbox Game Pass Ultimate costs $16.99/month and is required for streaming. On top of that, this tier includes Game Pass for both Console and PC, an Xbox Live Gold subscription and access to EA Play.
It’s unclear how much Sony plans to charge for its new expanded PlayStation Plus offering. The service currently costs $69.99/year.
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