Nintendo financial results – May 2023 – Switch at 125.62 million units
Nintendo has just posted its financial results for full fiscal year ending March 31, 2023. This covers the latest status report on Switch sales, overall performance of the company, and more.
The full highlights are as follows:
Looking at the Nintendo Switch business for the full fiscal year (April 2022 to March 2023), good sales were posted for Pokémon Scarlet and Pokémon Violet, which recorded a total sales of 22.10 million units, and for Splatoon 3, which sold 10.67 million units. Other new titles released during the period also performed well, with Nintendo Switch Sports selling 9.60 million units. Among titles released through the end of the previous fiscal year, Mario Kart 8 Deluxe sold 8.45 million units (for cumulative sales of 53.79 million units), and Kirby and the Forgotten Land sold 3.81 million units (for cumulative sales of 6.46 million units). As a result, there were 35 titles that sold over a million copies during the period, including titles from other software publishers.
As for hardware, units sold declined 22.1% year-on-year to 17.97 million units, as shortages of semiconductors and other components impacted production until around the end of summer, and we did not experience the growth in sales mainly during the holiday season that we saw in the previous fiscal year. The sales situation for software remained stable, but unit sales declined 9.0% year-on-year to 213.96 million units, affected to some extent by the decline in hardware sales.
Turning to the digital business for our dedicated video game platform, in addition to the impact of the depreciation of yen, sales of the downloadable versions of packaged software for Nintendo Switch performed well, and revenue related to Nintendo Switch Online increased, helping to push digital sales to 405.2 billion yen, up 12.7% year-on-year.
Royalty income increased, but income from smart-device content declined, with the result that overall sales in our mobile and IP related business totaled 51.0 billion yen, down 4.3% year-on-year.
Total sales reached 1,601.6 billion yen, with overseas sales of 1,236.0 billion yen accounting for 77.2% of the total. Operating profit came to 504.3 billion yen, ordinary profit was 601.0 billion yen, and net profit attributable to owners of parent totaled 432.7 billion yen.
For hardware, by continuing to convey the appeal of Nintendo Switch, we try to not only put one system in every home, but several in every home, or even one for every person. Another objective is to continually release new offerings so more consumers keep playing Nintendo Switch even longer and we can maximize hardware sales. Looking ahead at software, in addition to The Legend of Zelda: Tears of the Kingdom in May, and Pikmin 4 in July, add-on content for Pokémon Scarlet and Pokémon Violet in the form of The Hidden Treasure of Area Zero is on the way. The first part of this add-on content, The Teal Mask, is planned to be released in the fall of 2023, and the second part, The Indigo Disk, is planned for release in the winter of 2023. Other software publishers also plan to release a wide variety of titles, and we will work to invigorate the platform by supplementing existing titles with a continuous stream of new titles and add-on content.
The Super Mario Bros. Movie was released in theaters in April as part of our efforts to expand the number of people who have access to Nintendo IP. Through initiatives like this, we will work to continually grow our dedicated video game platform business, which is our core business.
Our financial forecast for the next fiscal year is sales of 1,450.0 billion yen, operating profit of 450.0 billion yen, ordinary profit of 480.0 billion yen, and profit attributable to owners of parent of 340.0 billion yen.
– Net sales this period – 1,601.6 billion yen (5.5% decrease year-over-year)
– Operating profit this period – 504.3 billion yen (14.9% decrease year-over-year)
– Ordinary profit this period: 601.0 billion yen (10.4% decrease year-over-year)
– Switch hardware total: 125.62 million
– Switch software total – 1,036.15 million
– Overall Switch sales this period – 17.97 million (22.1% decrease year-over-year)
– Standard Switch sales this period – 6.14 million
– Switch OLED sales this period – 9.22 million
– Switch Lite sales this period – 2.62 million
– Mobile, IP related income, etc. this period – 51.0 billion yen (4.3% decrease year-over-year)
