Nintendo Financials (February 2021): results, Conference Call, Q&A

Nintendo Financials – Results

Nintendo have shared their latest financial results, covering the Nine Months Ended December 31st 2020 (April 1st 2020 to December 31st 2020). You will find all the details on these pages:

  • Consolidated Financial Highlights, with consolidated operating results, the updated forecast for the current Fiscal Year, Nintendo comments, sales information (regional breakdown, digital sales), sales data and forecast, and more
  • Financial Results Explanatory Material, with lots of additional sales data, list of million-sellers this Fiscal Year, release planning, and more

Also, the following pages have also been updated:

Nintendo Financials – Conference Call

The presentation materials from the Conference Call are now available: you will find them on this page!

Nintendo Financials – Q&A

The transcript of the Q&A session is now available in English: click here to check it out! Here’s the list of questions:

Question 1: Your profit forecast for the fourth quarter (January to March) seems very modest, based on the progress made during the three quarters that ended on December 31. What is your take on this? Also, is the somewhat conservative fourth quarter forecast a result of your anticipating interruption to production due to the shortage of semiconductors and other components?

Question 2: Regarding shareholder returns, possible actions include buying back shares and revising the dividend payout ratio, so I’d like to hear about the discussions that led to the idea of a special addition to the annual dividend this time. Also, do you plan to enhance shareholder returns if business results exceed expectations in the future as well?

Question 3: On page 14 of the Financial Results Explanatory Materials, with the chart for digital sales trends, you show a significant increase in sales in the third quarter for what is grouped as “Download-only software, add-on content, and Nintendo Switch Online, etc.” Can you give some background on this increase? Also, what can you say about the outlook for next fiscal year and beyond?

Question 4: The cumulative sales volume for Nintendo Switch has reached approximately 80 million units, and is now within range of the approximately 100 million units recorded by Wii. Going forward, what do you think is needed to continue to grow Nintendo Switch sales even further?

Question 5: Are there any changes in how Nintendo Switch software is selling due to the diversification of the consumer base? Looking at the balance of software sales in this fiscal year, it looks like the ratio of sales for evergreen titles has increased in comparison to new titles, and it feels as if the way software sells has changed, compared to when Nintendo Switch launched. Please also tell me about your initiatives for encouraging new hardware purchasers to continue to buy software.

Question 6: Global Nintendo Switch sales volume (sell-in) for the fourth quarter is forecast to be 2.4 million units, but based on external data, sell-through in Japan in January already reached a certain level, so there seems to be a major difference between the two. I assume that the sell-through number includes units shipped in 2020, so the actual difference between sell-in and sell-through might be smaller. However, with the sales momentum being very strong, can you share your thoughts about the differences in sales trends for the fourth quarter in different regions? Also, there have been no major titles released this fiscal year, so what will the software lineup look like for the next fiscal year?

Question 7: How has the situation for Nintendo Switch sales in China through the third quarter changed relative to past performance? To what extent are these changes reflected in your upward revision of the financial forecast for the full year? I’d also like to hear your thoughts on the effect of Lunar New Year demand.

Question 8: You’ve talked about extending the Nintendo Switch lifecycle and further expanding the installed base, and that the user base has already become quite diversified. Where do you think there is room to grow, for example, demand for a second system, sales expansion in other regions, or expanding through something like Nintendo Switch Lite, which just completed its second holiday season? I heard news that you have no plans for a new model for the time being, but I’d like to hear more about your strategy for the Nintendo Switch family of systems.


Founder and main writer for Perfectly Nintendo. Tried really hard to find something funny and witty to put here, but had to admit defeat.