Nintendo financial results – May 2020 – Switch hardware sales at 55.7 million
Nintendo has reported its latest financial results for the fiscal term ended March 2019. The Big N provided an update on Switch sales, its overall performance, and more.
Here’s the full roundup:
– Switch sales for the quarter: 2.27 million
– Switch Lite sales for the quarter: 1 million
– Overall Switch sales for the quarter: 3.29 million
– Switch software sales for the quarter – 45.59 million
– Switch sales this fiscal year – 14.83 million
– Switch Lite sales for this fiscal year – 6.19 million
– Overall Switch hardware sales for this fiscal year – 21.03 million
– Switch software sales for this fiscal year – 168.72 million
– Switch lifetime sales – 49.57 million
– Switch Lite lifetime sales – 6.19 million
– Overall lifetime Switch hardware sales – 55.77 million
– Switch lifetime software sales: 356.24 million
– Switch hardware forecast for this fiscal year: 19.5 million
– Switch software forecast for this fiscal year: 140 million
– 3DS sales this quarter: 0.07 million
– 3DS software sales this quarter: 0.89 million
– 3DS sales this fiscal year: 0.69 million
– 3DS software sales this fiscal year: 4.99 million
– 3DS lifetime sales: 75.77 million
– 3DS lifetime software sales – 383.11 million
For the fiscal year ended March 31, 2020, Nintendo Switch Lite launched in September as a compact, lightweight, and easy-to-carry dedicated handheld system, and Nintendo Switch performed very well without losing momentum, resulting in significant sales growth for the entire Nintendo Switch family. Looking at software, Pokémon Sword and Pokémon Shield became big hits, posting sales of 17.37 million units, and Animal Crossing: New Horizons, released in March, sold 11.77 million units, which is now the best start ever for a Nintendo Switch title. In addition to titles like Luigi’s Mansion 3 and Super Mario Maker 2 that were released during this fiscal year, sales also continued to grow steadily for popular titles released in previous fiscal years and for titles from other software publishers. The total number of million-seller titles during this fiscal year reached 27 titles, including those from other software publishers. Nintendo Switch also launched in China through Tencent Holdings Limited in December.
Because of COVID-19, production and shipments of the Nintendo Switch console, accessories like the Joy-Con controllers, and Ring Fit Adventure faced delays in some regions from February through March, but this only had limited impact on business results for this fiscal year.
As a result, sales of both hardware and software exceeded last year’s good results. In terms of volume, hardware sales for this fiscal year totaled 21.03 million units (24.0% increase on a year-on-year basis), and software sales totaled 168.72 million units (42.3% increase on a year-on-year basis).
For Nintendo 3DS, hardware sales totaled 0.69 million units (73.0% decrease on a year-on-year basis), and software sales totaled 4.99 million units (62.3% decrease on a year-on-year basis).
Turning to our digital business for dedicated video game platforms, in addition to the strong sales of downloadable versions of packaged software for Nintendo Switch, the steady growth in sales of download-only software and add-on content, and the contribution from Nintendo Switch Online throughout the year all helped to bring overall digital sales to 204.1 billion yen (71.8% increase on a year-on-year basis).
For the mobile business, many consumers continue to enjoy applications released during this fiscal year, such as Mario Kart Tour, as well as titles that were released in previous fiscal years. Our mobile, IP related income reached 51.2 billion yen (11.5% increase on a year-on-year basis).
In total, net sales reached 1,308.5 billion yen (including overseas sales of 1,007.3 billion yen, or 77.0% of the total sales). Operating profit came to 352.3 billion yen, ordinary profit was 360.4 billion yen, and net profit attributable to owners of parent totaled 258.6 billion yen for this fiscal year.
There are concerns that COVID-19 will lead to a global decline in production and consumption.
Given the situation, we will work to continue to convey the appeal of the Nintendo Switch and Nintendo Switch Lite hardware and expand their installed base. Our plans with Nintendo software include the release of Xenoblade Definitive Edition in May and Clubhouse Games: 51 Worldwide Classics in June. In addition, we plan to distribute The Isle of Armor for Pokémon Sword Expansion Pass and Pokémon Shield Expansion Pass by the end of June as the first-ever add-on content for the Pokémon series, and to follow that up with The Crown Tundra in the fall. Other software publishers also plan to release a wide variety of appealing titles, and the combination of existing popular titles and a continuous stream of appealing new titles will work together to invigorate the platform.
For our mobile business, operations will focus on encouraging more consumers to continue to enjoy playing applications released during this fiscal year like Mario Kart Tour, as well as existing applications that were released in previous years.
Through these initiatives, we expect to see results on the order of 1,200.0 billion yen in net sales, with 300.0 billion yen in operating profit, 290.0 billion yen in ordinary profit, and profit attributable to owners of parent of 200.0 billion yen.
Unit sales of key products used in these forecasts can be found on page 14 under the heading “Consolidated sales units, number of new titles, and sales units forecast” in the section titled “Others.” Exchange rate assumptions for the major currencies used in forecasting are 105 yen per US dollar and 115 yen per euro.
