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Nintendo Financials (November 2022): results and highlights, Investors Briefing, Q&A

Lite_Agent

Nintendo Financials – Results

Nintendo have shared their latest financial results, covering the Six Months Ended September 30th 2022 (April 1st 2022 to September 30th 2022). You will find all the details on these pages:

  • Consolidated Financial Highlights, with consolidated operating results, the 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

Some highlights:

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  • Splatoon 3 sold 7.90 million units during its launch month
  • Nintendo Switch Sports sold 6.15 million units since launch
  • Mario Strikers: Battle League has reached 2.17 million units sold since June
  • Xenoblade Chronicles 3 is nearing the 2 million units milestone, with 1.72 million units sold in just two months
  • Mario Kart 8 Deluxe sold 3.07 million additional units, bringing total sales to 48.41 million units
  • Kirby and the Forgotten Land sold a further 2.67 million units, bringing total sales to 5.27 million units
  • 15: that’s the number of million-sellers on Nintendo Switch between April and September (including 4 third-party titles)
  • Nintendo Switch sales (Hardware) dropped by 19.2% Year on Year, but this not quite due to lower demand as might be expected for a console on its 6th year on the market, but in part because of semiconductor and other component supplies. That being said, Nintendo still made more money with Hardware sales thanks to the depreciation of the Yen. Also, sell-through (to consumers) is actually stable Year on Year; it’s the sell-in (to retailers) that saw a drop (-15% Year on Year)
  • Nintendo saw strong digital sales (187.8 billion yen, up 30.2% year-on-year), with an increase in sales for retail titles on the Nintendo eShop and Nintendo Switch Online subscriptions. Sales of DLC also increased, and not just for first-party titles: even third-party games saw an increase

Also, Nintendo announced a revised forecast for the current Fiscal Year. They’re expecting the Nintendo Switch to sell about 2 million units less than anticipated, despite improvements in semiconductor and other component supplies and a recovery trend in hardware manufacturing.

Also, the following pages have also been updated:

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Nintendo Financials – Briefing

The Corporate Management Policy Briefing is now available: click here to check it out!

Here’s some highlights:

  • people buying a new Nintendo Switch as an additional system accounts for abouyt 30% of total Nintendo Switch sales during the current Fiscal Year
  • the number of annual playing users on Nintendo Switch has reached 100 millions
  • the number of titles released by third-party publisher has reached the highest level ever seen in the history of our Nintendo home consoles
  • Nintendo Switch Online now counts over 36 million members, and accout for about 23% of total digital sales
  • the downloadable version of retail games account for 38.5% of total sales for those games, slightly down from the past Fiscal Year, and comprise 52.6% of total digital sales (in revenue)
  • about half of the people who downloaded the Splatoon 3 Splatfest World Premiere had either never played Splatoon before, or had played it but moved on
  • at Universal Studios Japan, the new Donkey Kong area at Super Nintendo World is set to open sometime in 2024
  • Nintendo games on smart devices have been downloaded over 800 million times, which is equivalent to the cumulative unit sales total of all Nintendo hardware since the launch of the Nintendo Entertainment System in 1983
  • total shipments for amiibo have reached 77 million units
  • the total number of Nintendo Accounts has reached 290 millions, in 164 countries
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Nintendo Financials – Q&A

The official English translation of Q&A session with investors is now available: click here to check it out!

Here’s the list of questions:

Question 1: I would like to hear how you are thinking about your next fiscal year. Next year will be the seventh year since Nintendo Switch launched, and you will also be moving forward in new areas of business such as IP expansion, including a movie. As Nintendo Switch progresses further into its life cycle, I would like to know how you will complement it with those other businesses.

Questions 2: What kind of initiatives are you considering to further increase the number of Nintendo Switch Online members and to bolster the enthusiasm of existing members?

Question 3: I would like to hear about why the initial unit sales for Splatoon 3 were so different in Japan, versus abroad. I know that in general, the overseas markets tend to get off to a slower start than the Japanese market, but the regional difference for Splatoon 2 was not as large as the difference this time around. Do you think there were any macroeconomic factors impacting this?

Question 4: Have you considered changing the price of hardware given the recent depreciation of the yen? In addition, with Nintendo Switch in its sixth year, are there any changes to your approach to lengthen the product life cycle, given factors such as the current levels of inflation, yen depreciation, and changes in the competitive environment?

Question 5: You previously acknowledged the challenge in the dedicated video game platform business when the hardware generation changes. The previous software is no longer playable on the new hardware, necessitating a start from scratch. However, by utilizing Nintendo Account or maintaining backward compatibility on new hardware, it now seems possible for content to endure across hardware generations, similar to how visual content is treated. I think there are both advantages and disadvantages to having newly launched hardware maintain backward compatibility with previous hardware, but what kind of internal discussions have you had about this subject?

Question 6: I would like to ask about your thoughts on expanding the “Mario” IP. What expectations should we have for The Super Mario Bros. Movie (to be released in Japan on April 28, 2023)? Also, you have moved forward with the strategy of expanding the number of people who have access to Nintendo IP through mobile, visual content, and theme parks, with Mario leading the way, but what fields are you considering expanding into next? I would like to hear about the long-term expansion of Nintendo IP.

Question 7: The proximity between consumers and Nintendo is now closer through Nintendo Account and Nintendo Switch Online, and I think it has become easier than before to see things like user activity in games. Do you think this kind of information will affect the development of software and the next-generation platform?

Lite_Agent

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