Nintendo financial results briefing live blog (fiscal year ended March 31, 2019)
Nintendo’s 2018 fiscal year financial results briefing is about to begin. Just like last time, analyst David Gibson is attending the event, and intends to share any notable information while it’s going on. We’ll be rounding up the various tidbits below.
Main Presentation
– After the new year, penetration is accelerating for Switch
– Nintendo expects further growth
– Switch is up 23% YoY
– Switch globally ahead of 3DS pace, but behind DS/Wii; however, launch timing impacts comparison
– Smash Bros. Ultimate is the driver of post new year sales of Switch, seeing expansion of games played by those users
– Game sales +50% YoY in March quarter as a result
– Switch software sales per hardware better than Wii, a very high level
– Monthly active users has doubled YoY in Mar quarter
– In FY3/20, in addition to main titles, Nintendo will have new titles that communicate how much fun users can experience with its device
– Pokemon Sword/Shield gameplay has reinforced the portable play mostly
– Releases are continuous, with other titles also planned not announced
– Nintendo Switch Online now 9.8m accounts excluding trial
– Tetris 99 has had 2.8m accounts played this game
– Plan to add more to Nintendo Online including more classic NES titles to make it more attractive
– China working with Tencent, but timing is not set yet and not in guidance
– Mobile expanding with 2 titles this summer, Mario Kart Tour beta to do final polish before the launch
– E3 will not have significant presentation (for analysts) but will have demos and events
– On China Nintendo doesn’t know timing, so not in guidance, even if included then not going to be significant this year
– 18m guidance, think will be able to expand steadily, many people enjoying different Switch playing styles, variety of 1st and 3rd party titles means users can find their own play styles
Q&A
– Want to increase the Switch software tie ratio
– For Nintendo Online – want to enhance so that more people will join and hence see sales growth
– Cloud gaming: think it will develop for consumers and is important, will need to accommodate that, but forecasts is to provide entertainment that only Nintendo can provide
– Mobile titles planned is 2-3, have announced two titles, these are the focus for this year
– China market is very large but its mainly mobile and there is hardly any console market, hence do not expect a large contribution
– Nintendo Online – making good progress, Tetris in Jan-Mar helped to drive new users, will continue to enhance the service
– 4Q YoY is different for sell-in and sell-through, there is a lag between, last year there was little inventory in system as had shortage, this year not the case. Think sell through momentum is not a problem
– There are concerns in 3rd year will see peaking out, but looking at momentum do not think this is the case
– Mario Kart Tour beta – will not do beta for all mobile titles, have customers we want to play the game, expect a high number of people to play, want feedback from customers so improve the final version
– Guidance in software units is from the title line up and comprehensive consideration of this
– Mobile in China? Not have anything to talk about now, will release when decided with Tencent
– How think about hostile takeover, do you have defense measures? Not have any defense system but at such an event can take measures in legal manor
