Nintendo Announces Massive Gains in Latest Financial Results; Increases Full Year Prediction Again
Nintendo announced its latest financials, and they're very positive following the Switch's success. The manufacturer went from loss to profit in a year.
Today Nintendo announced its financial results for the nine months ended on December 31st, 2017. As you can see in the table below, all the figures are firmly in the black, and massively improved compared to the same period in the previous year, during which the hardware manufacturer and software publisher from Kyoto posted losses.
The press release included a breakdown of the results, explaining the latest achievement both on the hardware and software front. We hear that Switch sales “rose substantially” during the holiday season. Super Mario Odyssey shipped 9.07 million units globally, Mario Kart 8 Deluxe shipped 7.33 million units, and Splatoon 2 moved 4.91 million units.
We also get info on 3DS, amiibo, and mobile sales.
“For the nine months ended December 31, 2017, the Nintendo Switch hardware sold well following the launch and sales volume rose substantially during the holiday season. For the Nintendo Switch software, SUPER MARIO ODYSSEY was released in October and has been a big hit, with global sales reaching 9.07 million units. Mario Kart 8 Deluxe, released in April, has sold 7.33 million units, and
Splatoon 2, released in July, has sold 4.91 million units, bringing to 8 the total number of million-seller titles for this fiscal year including the titles of other software publishers. The result is that hardware sales during this period totaled 12.13 million units, and software sales volume totaled 47.10 million units.
Nintendo 3DS hardware sales did not weaken after the launch of Nintendo Switch. In fact, sales grew during the holiday season in the US. Sales volume was firm in other regions as well, with the total reaching 5.86 million units (9% decrease on a year-on-year basis).
For the Nintendo 3DS software, sales of Pokémon Ultra Sun and Pokémon Ultra Moon, released in November, have grown to 7.17 million units, but overall software sales declined to 31.25 million units (33% decrease on a year-on-year basis).
The Super Nintendo Entertainment System: Super NES Classic Edition, launched globally during September and October, proved to be a hit. We also expanded our amiibo lineup with new amiibo released simultaneously with software titles, pushing sales to approximately 9.30 million units for figure-type and approximately 5.00 million units for card-type.
In our download business, brisk download sales for Nintendo Switch helped push total download sales up to 43.1 billion yen (87% increase on a year-on-year basis).
In our smart-device business, consumers not only continued to enjoy Super Mario Run and Fire Emblem Heroes, which became available for download during the previous fiscal year, but also had fun with Animal Crossing: Pocket Camp, released globally during October and November. Smart devices and IP related income were up to 29.1 billion yen (172% increase on a year-on-year basis).
Total sales reached 857.0 billion yen (of which overseas sales were 639.9 billion yen or 74.7% of the total sales). Operating profit came to 156.4 billion yen, ordinary profit was 194.5 billion yen, and profit attributable to owners of parent totaled 135.1 billion yen.”
The announcement includes the outlook for the full fiscal year, which will end on March 31st, 2018. The predicted sales and profit numbers have been substantially increased since the previous forecast shared three months ago, which was already revised upwards from the one announced six months ago.
“Major software titles due out for Nintendo Switch include Bayonetta 2, set for release in February, and Kirby Star Allies, coming in March, as well as major titles planned by other software publishers. We aim to broaden the platform’s user base by continuing to introduce compelling new software in addition to the stable of popular titles that already have been released.
For Nintendo 3DS, Detective Pikachu is due out in March. We will also work to leverage our installed hardware base to expand sales of evergreen titles.
In our smart-device business, we will focus on operations that encourage more consumers to continue to enjoy playing the applications that they have downloaded.”
“Based on the sales performance for the nine months ended December 31, 2017 and after, the Company modifies its financial forecast in consideration of the revised sales prospects as well as the revised assumed exchange rate.”
If you want to learn more, you can also check out the updated hardware and software shipments for both Nintendo Switch and 3DS, with hardware sitting at 7.63 million and 68.98 million respectively as of December 31st.