haxxiy said:
The operating profit increased because the bulk of their business is overseas but it's measured in an increasingly devalued yen, in dollars both the profits and revenue dropped. The Switch isn't manufactured in Japan, it's the price there that's currently too low and not the other way around. If anything the Japanese margins must be painfully thin nowadays, so it sucks for them that it's their best-performing market currently. |
The fact that the Yen is low is probably also part of what boosts the sales, since people buy from Japan probably in other asian countries, have it shipped, while their currency is much stronger. I would argue the Yen weakness and Switch unusual hold in Japan are in direct relation.