Nintendo hikes annual profit forecast despite gaming boom slowdown

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Updated 04 November 2021
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Nintendo hikes annual profit forecast despite gaming boom slowdown

  • The extraordinary demand experienced by gaming hardware makers during pandemic lockdowns is slowing

Nintendo upgraded its full-year net profit forecast on Thursday despite a weaker performance in the first half as the coronavirus lockdown-fuelled global gaming boom slowed.


The Japanese gaming giant now projects net profit at 350 billion yen ($3.1 billion) for the year to March 2022, up from an earlier estimate of 340 billion yen.


It also hiked its software sales forecast for this fiscal year ahead of releases including three titles in the popular Pokemon franchise.


The Kyoto-based firm's more optimistic outlook follows the October release of an upgraded model of its Switch console.


However, Nintendo lowered its annual target for Switch sales as Japanese media reported that production would be hit by the global chip shortage.


For the six months to September, Nintendo's net profit dropped 19.4 percent to 171.8 billion yen -- still well up from 62 billion yen in April-September 2019.


The extraordinary demand experienced by gaming hardware makers during pandemic lockdowns is slowing as life returns to normal in many countries.


Nintendo had posted its highest ever annual profit in 2020-21, boosted by the runaway popularity of the Switch console and the family-friendly game "Animal Crossing".


It lowered its annual Switch sales target to 24 million units for the current fiscal year from the 25.5 million forecast earlier.


The Nikkei business daily this week reported that annual Switch production was expected to fall by some 20 percent from its target for the current fiscal year due to the chip crunch.


Saudization rates in marketing, sales professions announced

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Saudization rates in marketing, sales professions announced

RIYADH: Saudi Arabia’s Ministry of Human Resources and Social Development has announced the issuance of two decisions to increase Saudization rates in marketing and sales professions.

This comes as part of the ministry’s efforts to enhance the participation of national talent in the labor market, raise the level of Saudization in specialized professions, and provide stimulating and productive job opportunities for Saudi citizens across the Kingdom.

The first decision stipulates raising the Saudization rate to 60 percent in marketing professions in the private sector, effective Jan. 19, 2026. It applies to establishments with three or more employees in marketing professions, with a minimum wage of SR5,500 ($1,466). 

The targeted professions include: marketing manager, advertising agent, and advertising manager, as well as graphic designer, advertising designer, and public relations specialist. They also include advertising specialist and marketing specialist, as well as public relations manager and photographer.

The decision will be implemented three months after the announcement date to allow establishments sufficient time to prepare and implement it.

The second decision stipulates raising the Saudization rate to 60 percent in sales positions within the private sector, effective Jan. 19, 2026. This applies to establishments with three or more employees in sales roles, including: sales manager, retail sales representative, and wholesale sales representative as well as sales representative, IT and communications equipment sales specialist, and sales specialist. They also include a commercial specialist and a goods broker.

The decision will take effect three months after the announcement date to allow targeted establishments time to fulfill the requirements and achieve the Saudization target.

The entity clarified that private sector establishments will benefit from a package of incentives offered by the Ministry of Human Resources and Social Development, including support for recruitment, training and development, and employment, as well as job stability and priority access to Saudization support programs and programs of the Human Resources Development Fund.

The ministry also confirmed that its decision to raise Saudization rates in marketing and sales professions was based on analytical studies of labor market needs, in line with the number of job seekers in related specializations and the current and future requirements of the sales and marketing sectors.

It noted that implementing these decisions would enhance the attractiveness of the labor market, contribute to increasing quality job opportunities, and promote job stability for Saudi nationals.

The ministry further published the procedural guide for the two decisions on its website, which includes details of the targeted professions, the mechanisms for calculating Saudization rates, and the required compliance steps.

It urged all covered establishments to comply with the implementation to avoid penalties and to take advantage of the grace period provided for preparation and fulfillment of the requirements.