2. Information About Risks Related to COVID-19
The spread of COVID-19 poses the following risks that may impact the Nintendo group. However, this list does not encompass all risks, and there may be other risks that cannot be predicted.
・Impact on parts procurement, production, and shipmentsIt appears that delays in production and shipping are gradually recovering. However, we may be affected if there continue to beissues 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 activitiesThere 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, we 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 our network may be suspended in the event that we are no longer able to maintain the stability of our network systems.
・Impact on research and developmentIf 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, we 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 fluctuationsChanging circumstances in different countries due to the effects of COVID-19 may cause exchange rate fluctuations that could impact our financial results.
www.resetera.com