Nintendo Second-Quarter Earnings: What to Watch

ENLARGE

An electronics store in Tokyo in 2014. Photo: Shizuo Kambayashi/Associated Press

TOKYO— Nintendo Co. NTDOY 1.28 % is scheduled to announce its second-quarter earnings after the Japanese market closes on Oct. 26. Here’s what you need to know:

EARNINGS FORECAST: The Kyoto-based company is expected to report a net profit of 18.5 billion yen ($178.5 million) and an operating profit of ¥3.2 billion yen, according to a median forecast of six analysts polled by data provider Quick. In the year-earlier quarter, Nintendo reported a profit of ¥3.2 billion and operating profit of ¥7.8 billion.

REVENUE FORECAST: Nintendo is expected to report quarterly revenue of ¥82.3 billion, down from ¥114 billion a year earlier.

WHAT TO WATCH:

NX UPDATES: Nintendo is expected to announce its plan on how it would unveil its next-generation videogame platform, code-named “NX,” when Chief Executive Tatsumi Kimishima meets the press next Wednesday and analysts the day after. It is unlikely—though not impossible—that the company would talk about the NX this week via online presentations. A Nintendo spokesman said the company plans to share more about the NX by the end of this year; the launch is scheduled to occur by March.

POKÉMON GO WATCH: The second-quarter results will provide the first financial indications on the blockbuster smartphone app Pokémon Go. The game was developed by Nintendo affiliate Pokémon Co. and Niantic Inc., an Alphabet Inc. GOOGL 1.82 % spinout in which Nintendo also invested. In July, Nintendo said it expected no major financial contribution from the game. Nintendo may also provide more fresh data, including sales of the game’s wearable device—Pokémon Go Plus—which Nintendo was in charge of making.

NO CORPORATE STRATEGY MEETING: Nintendo often holds a meeting to brief media and analysts on its strategy soon after it reports second-quarter earnings. Last year, Nintendo used the occasion to announce its first smartphone game, Miitomo. But the Nintendo spokesman said there are no such meetings planned for this year.

3DS GAME TITLES: Nintendo is phasing out its flagship console Wii U to focus on the NX. As a result, its popular but aging hand-held 3DS game machine will be one of the company’s few weapons for the coming holiday season. Nintendo prepared many strong titles to boost sales of the 3DS, including a new Pokémon game, Super Mario Maker and Miitopia, which has been a bit of a mystery. Nintendo has promised to talk more about it by the end of the year.

SUPER MARIO RUN: Another partnership creation from its tie-up with smartphone game maker DeNA Co. 2432 -2.20 % , Nintendo plans to release a Super Mario game for Apple Inc. AAPL -0.07 % ’s iOS platform in December. Nintendo may announce additional information next week.

Write to Takashi Mochizuki at takashi.mochizuki@wsj.com

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