Nintendo Announces Financial Results; Holds Firm on 20 Million Yearly Prediction for Switch
Nintendo announced strong financial results for the fiscal quarter ended on June 2018; Still expects to ship 20 million Switch units this year.
Today Nintendo announced its financial results for the fiscal quarter ended on June 30th, 2018.
As you can see below, sales significantly increased (by 9.1%) year-on-year, and operating profit saw a massive increase by 88.4% year-on-year.
We also get a detailed breakdown of Nintendo’s results. Donkey Kong Country: Tropical Freeze shopped 1.40 million units, while Mario Tennis Aces shipped 1.38 million units. 1.39 million units of Nintendo Labo (combined) made their way to retailers.
1.26 million units of the NES Classic Edition were also shipped in June.
“During the first quarter of this period (April through June 2018), for Nintendo Switch, Donkey Kong Country: Tropical Freeze was released in May and became popular, selling 1.40 million units worldwide. Mario Tennis Aces, released in June, is also off to a good start, with 1.38 million units sold. We also released Nintendo Labo in April as an offering of new ways to play that gained a lot of attention globally, and was very well received by consumers who purchased it. Sales of Nintendo Labo series overall reached 1.39 million units. Additionally, sales of popular titles released during the previous fiscal year, and of titles released by other software publishers are showing steady growth. As a result, hardware and software sales came to 1.88 million units (4.4% decrease on a year-onyear basis), and 17.96 million units (120.8% increase on a year-on-year basis) respectively. Hardware sales of Nintendo 3DS, now in its 8th year since launch, reached 0.36 million units sold (61.9% decrease on a year-on-year basis), while 2.95 million software units were sold (49.6% decrease on a year-on-year basis). We also re-launched the Nintendo Entertainment System: NES Classic Edition in June, and recorded sales of 1.26 million units.
Turning to our digital business for dedicated video game platforms, sales of downloadable versions of packaged software and add-on content for Nintendo Switch showed especially good growth, bringing digital sales to 18.5 billion yen (68.0% increase on a year-on-year basis).
In our smart-device business, consumers are continuing to enjoy currently available titles like Super Mario Run, Fire Emblem Heroes and Animal Crossing: Pocket Camp. Smart devices and IP related income reached 9.0 billion yen (0.4% increase on a year-on-year basis).”
Additional information from the manufacturer mentions that Xenoblade Chronicles 2 is at 1.42 million shipments, Splatoon 2 is at 6.76 million, Mario Kart 8 Deluxe is at 10.35 million, Super Mario Odyssey is at 11.17 million, and The Legend of Zelda: Breath of the Wild is at 9.32 million shipments as of June 30th.
We also get more details on the forecast for the full fiscal year. Nintendo stands firm on its shipment prediction for the Switch (today we also got an update to shipments, with the console that slowed down a bit) of 20 million units for the full fiscal year.
Despite the slowdown in shipment for the Switch in the quarter, Nintendo mentions that they’ve been trending upwards after E3 2018.
“For Nintendo Switch, hardware sales in every region have been trending upwards since the video game expo, E3, was held in the US in June. In parallel with an increase in digital sales, software sales also have been moving in good shape towards the holiday season.
Between this summer and the end of the year, Captain Toad: Treasure Tracker will be released in July, followed by Nintendo Labo Toy-Con 03: Vehicle Kit as the third Nintendo Labo product in September and Super Mario Party in October. The latest series titles, Pokémon Let’s Go, Pikachu! and Pokémon: Let’s Go, Eevee! will be released in November, and then Super Smash Bros. Ultimate will be released in December. We also expect to release several key titles from other software publishers as we continue to offer attractive titles that are filled with variety. In September, we plan to launch Nintendo Switch Online, our paid service that expands online functionality for Nintendo Switch. Through all of these efforts, we are working to further accelerate the already great momentum of Nintendo Switch.
For Nintendo 3DS, we will continue to leverage the platform’s rich software library and its hardware install base to further expandsales of evergreen titles.
For the smart-device business, we plan to release a new original game application titled Dragalia Lost this summer, as well as our Mario Kart application for smart devices, Mario Kart Tour, by the end of this fiscal year. As we introduce these new game applications, we will also focus on continued operations for applications that have already been released so that consumers can enjoy playing them
for a long time.”
If you still don’t have a Switch and want one, you can purchase your unit on Amazon.