The clock seems to have another victory under its belt.
As the business day wrapped up in Japan today, Nintendo unveiled their financial results for the July to September quarter of this fiscal year. For the first time in a while, they’re adjusting their forecasts—downward.
To provide some context, all figures are given in yen (¥), but I’ve also included US dollar equivalents, using an exchange rate of ¥152.224 = $1 for clarity.
Financial Overview
- Revenue: ¥276.661 billion ($1.817 billion), a 19.78% drop compared to the previous year.
- Operating income: ¥67.003 billion ($440 million), down by 29.21%.
- Ordinary income: ¥33.631 billion ($221 million), experiencing a significant decline of 73.36%.
- Digital sales: ¥79.2 billion ($520 million), a decrease of 19.1%, with digital versions accounting for 56.3% of their software sales this fiscal year.
- Mobile and IP revenue: ¥16.5 billion ($108 million), down 28.88%.
Hardware Sales
The Nintendo Switch’s lifetime sales have now reached an impressive 146.04 million units, with 2.62 million units shipped just this quarter. The details include 1.26 million OLED models, 720,000 standard Switch units, and 640,000 Switch Lites. Worth noting, the Echoes of Wisdom-branded Lite was the sole special edition hardware released in this quarter.
To surpass the DS in lifetime sales, they need to sell another 7.98 million units, while overtaking the PlayStation 2 would require 12.66 million more units.
New Software Launches
This quarter saw three new software titles from Nintendo, compared to just one, Pikmin 4, during the same period last year. The standout performer was The Legend of Zelda: Echoes of Wisdom, shipping 2.58 million units in just the first five days. However, Nintendo World Championships: NES Edition and Emio: The Smiling Man Famicom Detective Club haven’t reached the million units mark yet.
Two titles from the previous quarter also received updates: the Paper Mario: Thousand-Year Door remaster has shipped 1.94 million units, while Luigi’s Mansion 2 HD reached 1.57 million.
Catalogue Sales
The top ten games remain as they were, with Mario Kart 8 Deluxe now boasting lifetime shipments of 64.27 million units. You can check out the updated numbers here. It’s noteworthy that the Pokémon titles Scarlet and Violet are on the cusp of surpassing Sword and Shield, making them the second best-selling series in Pokémon franchise history.
Additional Announcements
Nintendo reported ¥22.4 billion in foreign exchange losses, a stark contrast to the ¥30.6 billion in gains reported in the first quarter, contributing to the drop in operating income seen above.
The company has made a series of downward adjustments to their forecasts: revenue expectations were cut by 5.2% to ¥1,280 billion, operating profit projections dropped by 10% to ¥360 billion, expected Switch hardware shipments were revised from 13.5 million units to 12.5 million, and software predictions trimmed from 165 million to 160 million. This reflects the slowdown in Switch sales during its eighth year on the market.
