Nintendo Q2 financial results (FY3/2018) - Switch at 7.63 million shipped total - Nintendo Everything

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Nintendo Q2 financial results (FY3/2018) – Switch at 7.63 million shipped total

Posted on October 30, 2017 by (@NE_Brian) in 3DS, New Nintendo 3DS, News, Switch

Nintendo’s financial results for the second quarter are now in. The latest data covers sales for Switch and 3DS, overall results for the company, and more. We’ve rounded up the relevant information below.

– Switch hardware forecast increased to 14 million units from 10 million originally
– Switch software forecast increased to 50 million units from 35 million originally
– Net sales: 374,041 million yen, 173.4% increase year-over-year
– Operating income: 39,961 million yen
– Profit: 51,503 million yen
– Switch hardware: 2.93 million for the quarter / 4.89 million FYTD / 7.63 million LTD
– Switch software: 13.98 million for the quarter/ 22.02 FYTD /27.58 million LTD
– 3DS hardware: 1.91 million for the quarter / 2.86 FYTD /68.98 million LTD
– 3DS software: 7.97 million for the quarter / 13.82 FYTD /343.07 million LTD

– Smart device, IP related income: 17,925 million yen

During the six months ended September 30, 2017, for Nintendo Switch, Splatoon 2 released in July gained popularity both in Japan and overseas, with 3.61 million units sold globally. Mario Kart 8 Deluxe and ARMS also both sold well after their releases in April and June, respectively. All told, the sales volume for the Nintendo Switch hardware and software during this period came to 4.89 million units and 22.02 million units respectively.

Sales of the Nintendo 3DS family were given an increase with the global release of New Nintendo 2DS XL in June and July. Hardware sales came in at 2.86 million units (5% increase on a year-on-year basis). Despite firm sales of Fire Emblem Echoes: Shadows of Valentia and Metroid: Samus Returns, overall software sales were 13.82 million units (28% decrease on a year-on-year basis).

In addition, Super Nintendo Entertainment System: Super NES Classic Edition was off to a good start following its September launch (launched on October 5 in Japan). We also made moves to expand our amiibo line, by launching the new Splatoon series amiibo. Our amiibo sales were approximately 5.10 million units for figure-type and approximately 2.80 million units for card-type.

Download sales were increased in particular by Nintendo Switch software, pushing total download sales up to 22.8 billion yen (55% increase on a year-on-year basis).

For smart devices, many consumers are continuing to enjoy Super Mario Run and Fire Emblem Heroes, released during the previous fiscal year. Our smart device and IP related income was 17.9 billion yen (426% increase on a year-on-year basis).

With this background, our total sales reached 374.0 billion yen (of which overseas sales were 272.3 billion yen or 72.8% of the total sales). Operating profit came to 39.9 billion yen, ordinary profit was 69.5 billion yen, and profit attributable to owners of parent reached 51.5 billion yen.

Source 1, Source 2

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  • JasonBall

    Good I think

  • awng782

    Nintendo hardware quarterly shipments / LTD sales comparison:

    3DS Q1 2011: 3.61 million / 3.61 million (Feb/Mar launch)
    3DS Q2 2011: 0.71 million / 4.32 million
    3DS Q3 2011: 2.36 million / 6.68 million (price cut in August)

    Wii U Q4 2012: 3.06 million / 3.06 million (Nov/Dec launch)
    Wii U Q1 2013: 0.39 million / 3.45 million
    Wii U Q2 2013: 0.16 million / 3.61 million

    Switch Q1 2017: 2.74 million / 2.74 million (March launch)
    Switch Q2 2017: 1.96 million / 4.70 million
    Switch Q3 2017: 2.93 million / 7.63 million

    • Toni

      those Wii U sales dropped REALLY fast in comparison, it also barely outsold the switch despite selling in the fourth quarter

    • Gregory Weagle

      I notice Wii U’s software by the end of Q4 2013 was around 29.5 million units. Compare that with 27.84 million and that’s amazing. Switch has already sold more hardware units in seven months without a single holiday than Wii U did by September 30th, 2014; which had two holiday periods.

  • awng782

    Nintendo updated their Switch shipment forecast from 10 million to 14 million. This means Nintendo wants to shipa total of 16.7 million Switches by the end of March 2018.

    Nintendo also updated their Switch software shipment forecast from 35 million to 0 million. This means Nintendo wants to ship a total of 55+ million Switch games by the end of March 2018.

    • ben

      Yeah. I can see them achieving those targets.

    • Gregory Weagle

      Yuji Nakamura and Serkan Toto are already claiming that Nintendo is low balling the figures, since the tie ratio is already 4.5 right now and the forecast lowers it to 3.6; which makes no sense since tie ratios always go up over a lifecycle. I wouldn’t be shocked if that is the case, since Nintendo has done this before with Nintendo DS.

      • awng782

        Switch hardware sales as of Sep 2017: 7.63 million
        Switch software sales as of Sep 2017: 27.58 million
        Attach rate: 3.61

        First ~13 months of the market…
        Projected Switch hardware sales as of Mar 2018: 16.70 million
        Projected Switch software sales as of Mar 2018: 55.56 million
        Attach rate: 3.32

        Yeah…I can’t see the attach-rate going down. I think Nintendo will ship closer to 60 million Switch games during the fiscal year. They have already shipped 22 million games so far from April 2017 to September 2017. Selling another 38 million games from October 2017 to March 2018 is doable. That would bring the attach rate to around 3.9 by March 2018. That makes sense.

        For comparison’s sake…
        Wii U hardware sales as of Dec 2013: 5.86 million
        Wii U software sales as of Dec 2013: 29.37 million
        Attach rate: 5.01
        3DS hardware sales as of Mar 2013: 17.13 million
        3DS software sales as of Mar 2012: 45.42 million
        Attach rate: 2.65 (Wow, that’s a low number…)

  • Gamingfan

    The line up for next year is looking pretty weak right now imo.

    • ben

      They have not even announced their line up for next year for any one to decide if it is weak or not.

      • Gamingfan

        There’s yoshi and kirby, both 2d sidescrollers, fire emblem and octopath traveller. Both metroid and pokemon dont have release years.

        Even if pokemon and retro’s game come out next year it still looks pretty weak.

        • Edzepp

          There’s no reason to believe that that’s it. Like ben said, there’s likely more and Nintendo don’t usually reveal things too far out.

          • ben

            There is hard evidence to believe Nintendo will be able to manufacture top notch games faster and better than any other company in the world. No other company has a studio designed to make games fast like Nintendo has now.

            Plus they are now working with Nvidia hardware and using Unreal engine 4 to save time and money.

        • ben

          Yeah, I don’t want to be a hype person but…. Zelda team, Mario team, Splatoon team these groups all work in the same building and they are all basically free.

          Pikmin team has to announce.
          Platinium games appears to be working on Nintendo projects.
          Zelda team was always 2 teams.
          Mario was always two teams.
          Arms and Mariokart team is basically doing very little.
          All the little sub teams that made smaller games are all free.

          If you think Nintendo has only 3 games for next year you are insane.

          Nintendo has 1600 people working for them. The vast majority are in one brain center in Kyoto.

          Nintendo became so unified because of Iwata`s plan that we cant even compare them to any other publisher in the world at this point.

          • Desiderio Lazaro

            And don’t forget Retro’s unnanounced game 😉

          • Locky Mavo

            Not to mention Retro’s project and Monolith also has 2 teams plus a new project in the works.

        • Constantinos Lapiotis

          You are quick to judge. Wait for actual announcements for 2018.

        • Princess_Eevee9

          When you live in a world where thinking the mere mention of Pokemon doesn’t immediately invoke sold-out status. Lawl what stupidness.

      • So far this is the game for next year;

        Attacks on titan 2
        2064: Read Only Memories
        Atelier Lydie & Suelle: Alchemists of the Mysterious Painting
        Away: Journey to the Unexpected
        Blacksad
        BlazBlue: Cross Tag Battle
        Bloodstained: Ritual of the Night
        Celeste
        Crazy Justice
        Cuber
        Dead end job
        Descendersragon Quest Builders
        The fall part 2 unbound
        Fe
        Fear Effect Reinvented
        Fear Effect Sedna
        Fire Emblem
        Fossil Hunters
        GalGun2
        Ex Bambit
        Indivisible
        Juice realm
        Kentucky Route Zero: TV Edition
        Kirby
        A knight quest
        Light fingers
        Lost Sphear
        Monster Boy and the Cursed Kingdom
        Monster Energy Supercross
        Mulaka
        The Mystery of Woolley Mountain
        My Time at Portia
        Next up Hero
        Original journey
        Penny-Punching Princess
        Pikuniku
        Octopath
        Real farm
        Runbow
        Runner3
        Shots fired
        Shovel knight
        Starlink: Battle for Atlas
        Super meat boy
        Syberia 3
        Tangledeep
        Twonsmen
        Unruly heroes
        Wolfenstein 2
        Yokus Island Express
        Yoshi

    • Pepperkeet

      Imagine living in a world where you think Nintendo has revealed all they got for next year…. lol such silliness.

      • Gamingfan

        Hence why I said right now.

        • Advance*

          Their lineup for 2020 looks even weaker right now

    • Vio Lent

      lmao.. we only know yoshi, kirby, and fire emblem for 2018.. and still dont know about other games as well.. they surely working on something but they save for the next direct..

      and more 3rd party games will be announce..

      • Gamingfan

        For me personally I’m just looking at the exclusives. I’ll be playing third party multiplats on the ps4 because they’ll be better versions.

        • Depends on what you’re looking for, I’ll happily take a lower resolution to be able to take it anywhere

          • Gamingfan

            I dont play games when I go out so yer.

          • Aline Piroutek

            I play games at my floor Tvless

  • Adrian Brown

    Huge numbers, and no Black Friday or Christmas sales yet. Insane.

    • Eagle367

      And no October so no mario Odyssey. If they have the stock I wouldn’t be surprised if they sell close to 2 million just in October. In November and December they are just gonna go insane who knows maybe Nintendo’s hardware estimate at 14 mil is still conservative

  • FutureFox

    Hitting those numbers at a pretty good clip. Just over one million units sold per month, pre-holiday season! They’ll hit 14 million comfortably.

  • awng782

    3DS hardware numbers are also very impressive. Nintendo shipped 1.91 million 3DS’s this quarter, up from 1.7 million a year ago when the Pokemon Go craze in July/August caused a big spike in 3DS hardware sales.

    Unfortunately, 3DS software sales are slowing despite the growth in hardware sales, with game sales down 25% YoY. Even though DQXI launched on the 3DS to great success, Japanese 3DS software sales during the quarter still dropped YoY.

    Arms’ sales have also come to a crawl, as Nintendo only shipped 170,000 copies worldwide this quarter.

    But 3DS software sales and Arms are just two weakpoints in what has otherwise been a stellar year for Nintendo.

    • Constantinos Lapiotis

      I wouldn’t call ARMS a weak point as a new IP and being a million seller. Different people, different opinions on what’s a “weak point” I guess.

      • Stuart

        Oh it is definitely good. For a new IP and a fighting game it is amazing.

      • Mark

        Agreed. Many other companies pray for their titles to do as well as ARMS.

        • Eagle367

          Like marvel Vs capcom and sfv?

  • Stuart

    That is it. They gonna make it. They actually will succeed on outselling Wii U’s lifetime sales on just the first year. Insanity.

  • Princess_Eevee9

    All of this and pre-Super Mario Odyssey hype? Oh yeah Nintendo’s looking mighty fine right now. And this is even before the November Holiday craze, plus Cyber Monday /Black Friday. No other console stands a chance to match the flames the Nintendo Switch has blazed out this year, Good job Nintendo for just annihilating all ill-tidings that the Nintendo Wii U might’ve brought to many consumers. In Year One alone, Nintendo Switch on track to annihilating both the Nintendo Wii U’s, SEGA Dreamcast, AND Nintendo GameCube’s LIFETIME sales records, oh my swirls good gracious.

  • GoldenTriforce

    Yes! 4 million jump is great, glad they can produce that much! Looks Switch software is also doing better than they predicted, as I expected. 3DS did a whole lot better than I expected.

  • amak11

    Just a pre-warning, I wouldn’t bother replying to GamingFan… He always craps on Nintendo in these articles. Even when they are surpassing any expectations, they are doing bad to him. He loves to spread his opinion as fact and makes bold claims like he’s some investor or dare I say “gaming fan”. If he was then he’d have no ill will towards any company.

    • Tlink7

      If nobody responded to trolls like Gamingfan & co., they’d disappear like snow before the sun

      • Rodrigo Coelho Costa Junior

        I don;t even know who that douche is

        • Tlink7

          I’m glad you do not 😀

      • Reggie

        Wise words. Better to just block them too so you won’t be tempted to respond. =P

        • Tlink7

          I really don’t like blocking people, but it might be worth it for their infuriating antics… xD it is very hard to resist replying somtimes

      • Eagle367

        Just laugh them off laugh at them like they are comedians don’t take them seriously it will demoralise them way more than not responding

        • Tlink7

          I like that idea actually, everybody just saying ”hahahahhahaha” to whatever they say and nothing else xD

    • Gamingfan

      When there’s something decent to play besides mario let me know.

  • Tlink7

    I know I’m not supposed to be so evil, but I can’t wait for the day when the supposed ”underpowered piece of cheap crap” that is the Switch outsells the Xbone lol

    • I don’t think that’s evil. That’s just awaiting the inevitable, divine humor. x’D

  • uPadWatcher

    Excellent! Just three million more and I’m sure the Switch will reach the 10 million mark at the end of 2017 or February 2018.

  • Rodrigo Coelho Costa Junior

    wow 55% increase on a year-by-year basis for digital sales is HUGE!
    NPD just because irrelevant, it seems that digital sales already is part of a huge chunk for the total sales.

    And it makes total sense too, for switch.
    I only buy digital on switch and carry everything with me at all times.

    • uPadWatcher

      Good thing that you own a MicroSD XC Memory Card, eh Rodrigo?

      • Rodrigo Coelho Costa Junior

        I don’t actually. But I’ll need to get one super soon for DOOM

    • NPD is counting digital sales when provided. Nintendo just hasn’t provided them to NPD yet.

      • Rodrigo Coelho Costa Junior

        Ah, good to know, I wasn’t aware

  • TDude73

    Excellent! Just three million more and I’m sure the Switch will reach the 10 million mark at the end of 2017 or February 2018.

    • Gregory Weagle

      You know; this holiday season could really get out of hand for Nintendo fans now. I mean, really, really ugly.

  • nemo37

    Pretty good results so far. However, I think changing their yearly target for Switch from 10 to 14 million is not really the best idea. I know sales for consumer electronics tend to explode in the holiday quarter, but I am still in the camp that feels Switch might be priced a bit too high. In addition, as with the past few years, I fully expect MS and Sony to do surprise price cuts starting on black Friday. Maybe this is just me being overly conservative with my predictions, but I feel 8-10 million should be the upper limit FY April 2017-March 2018.

    • Michael C

      Sony is what 47 million ahead? ms is what 21 million ahead? They wont price cut because nintendo 2nd try this generation is doing well, they are not competing against handhelds.

      • nemo37

        LOL of course they are ahead. They launched their systems 4 years ago. By your (il)logic no one should launch new systems because there are already systems with a higher user base available.

        Also, Sony and MS are competing with Nintendo (and other consumer electronics makers for that matter). Their competition with Switch might not be as direct as it is with each other (since Sony and MS are vying for the stationary console market). Finally, the vast majority of consumer electronics companies cut prices around Black Friday (which is the entire point of that event); Sony and MS have done every year and they will do it again this year, it has little to do with responding to Nintendo and more with the fierce competition in the holiday season (Nintendo is a part of this, but every company in the consumer tech sector is competing with all other companies within that sector). Nintendo did it the last few years with 3DS/2DS and will most likely do it again this year for those systems (since they do not want to sell Switch at a loss).

    • Surprise price cuts? I think everyone expects BF deals hitting $200 for the slim and one s.

      Nintendo is banking on already high sales plus Mario/Zelda really moving units. I am willing to bet in the US, after BF weekend, that Switch is going to be sold out.

      This also must mean they have some software hitting early next year to keep momentum going.

      • nemo37

        Well I only called them surprise since they have not really announced them yet. I am in full agreement that we will likely see a $200 package for both of those systems.

        I totally agree that the Switch has really great software power to give it momentum during the holidays. However, a price cut by the other two might divert some individuals from getting the system for this year. (I can see a lot of parents and grandparents going into their store seeing that the Switch costs $300 + $60 for a game and then looking next to it with a $200 Xbox One and $200 PS4 that most likely come with a game and have a backlog of price reduced software available to them). Honestly, I really do wish that they had a BoTW and Splatoon/MK8:D bundle priced at $300 as a BF deal or the regular system for $250; I feel those prices would make them more competitive or this year’s BF.

        I also agree that Nintendo should prioritize software releases in 2018 to keep the momentum going, a release schedule like they had this year (about 1 major game per month) would be good.

  • Michael C

    $453 millionUSD in profit…. MS makes more in one quarter in profit then nintendo does in 3 years… they did good for a small tech company.

    • nemo37

      Yeah MS should make more considering they make Office, Windows, non-gaming hardware (Surface) in addition to Xbox. But if you look a little closer at Microsoft Gaming Division, you would realize they have not made profit; hence why MS clumps them in with other less successful business and just reports the revenue.

    • Microsoft has their hands in the entire tech world. Nintendo is just in gaming.

    • Mark

      So? Microsoft’s EBITDA is more than four times Sony’s as well, and yet Sony is killing them in the video game market. Almost as if the fact that Sony and Microsoft produce something OTHER than video games means something…

    • awng782

      How much of that came from Xbox alone??

    • Spice’71

      MS don’t give separate figures for Xbox division, their gaming division is now including Windows 10 on PC.

    • AJK

      Microsoft has never made a single penny of profit ever from it’s Xbox division (never). Let that sink in.

  • Ruggarell

    Bought Samus returns day one it was so excellent.

  • StuOhQ

    Big numbers from Nintendo! Here’s to an awesome first year.

  • Wow. That y-o-y increase really got me. That’s amazing, and great for them.

    Also great that they can not only increase their forecast so much, but realistically even. If the software (first and third party) comes from as hinted and promised, it will become easily viable too. Here’s hoping~.

    That’s a lot of wonderful success for Nintendo though, and I’m really glad about it. I’m looking forward to what’s to come.

  • awng782

    The quarterly YoY hardware sales comparisons are comical:

    Apr 2016 – Sep 2016:
    3DS hardware sales: 2.71 million
    Wii U hardware sales: 0.56 million
    Total hardware sales: 3.27 million

    Apr 2017 – Sep 2017:
    3DS hardware sales: 2.86 million (+5%)
    Switch hardware sales: 4.89 million
    Total hardware sales: 7.75 million (+137%)

  • Supporter

    Even with the decrease in software sales, I’m glad Fire Emblem Echoes and Metroid Samus Returns seemed to sell well on the 3DS. Meanwhile, the Switch is absolutely incredible in sales.