By the end of the business day in Japan, Nintendo opened up about their financials for the July to September quarter, revealing some revisions and for the first time in a while, they’re scaling down their forecasts.
All financial data is shown in yen (¥), with US dollars as reference, by using an exchange rate of ¥152.224 = $1.
Financial Snapshot
- Revenue: ¥276.661 billion (~$1.817 billion), reflecting a 19.78% decline year-over-year.
- Operating Income: ¥67.003 billion (~$440 million), dropping by 29.21%.
- Ordinary Income: ¥33.631 billion (~$221 million), seeing a steep fall of 73.36%.
- Digital Sales: ¥79.2 billion (~$520 million), down by 19.1%, with digital purchases making up 56.3% of the fiscal year’s software sales.
- Mobile and IP Revenue: ¥16.5 billion (~$108 million), experiencing a 28.88% decrease.
Hardware Deliveries
The Nintendo Switch has reached lifetime sales of 146.04 million, shipping 2.62 million units this past quarter. Here’s the breakdown: 1.26 million OLED models, 720,000 standard models, and 640,000 Switch Lites—featuring the exclusive Echoes of Wisdom-branded model. To outpace the DS in lifetime sales, Nintendo needs to sell another 7.98 million units, and for the PlayStation 2, they have a gap of 12.66 million to close.
Fresh Launches
This quarter, Nintendo rolled out three new games, gaining a boost from The Legend of Zelda: Echoes of Wisdom which shipped a remarkable 2.58 million units within its first five days. Meanwhile, neither Nintendo World Championships: NES Edition nor Emio: The Smiling Man Famicom Detective Club hit the million mark in shipments. Updates came through for two titles from the previous quarter: Paper Mario: Thousand Year Door remaster shipped 1.94 million, and Luigi’s Mansion 2 HD clocked in 1.57 million.
Back Catalogue Sales
The top 10 list remains unchanged, with Mario Kart 8 Deluxe hitting lifetime shipments of 64.27 million units. There’s chatter that Pokémon Scarlet and Violet might soon surpass Sword and Shield as the second top-selling games in Pokémon’s storied history.
Additional News
An interesting financial twist—a ¥22.4 billion hit in foreign exchange losses, following a previous gain of ¥30.6 billion in the first quarter, played a role in the drop in operating income you see today. Nintendo also adjusted their forecasts, all pointing south. They’ve lowered revenue expectations by 5.2% (down to ¥1280 billion), and operating profit sees a 10% drop (to ¥360 billion). They’ve also revised Switch hardware projections from 13.5 million units shipped to 12.5 million and software from 165 million to 160 million—acknowledging a slowdown as the Switch enters its eighth year on the market.
