Nintendo reported its results for the first quarter of the financial year 2021 (1 April to 30 June 2020). During this period, Nintendo’s total net sales were Yen 358.1 billion, an increase of 108.1% on the first quarter of last year. Operating income was JPY 144.7 billion (+427.7%) and net income was JPY -106.4 billion (+541.3%). Compared with the previous year, sales of video games rose by 113.2%, sales of mobile communications by 32.7% and sales of playing cards by 37.3%.
Despite these brilliant financial results, Nintendo has not changed its forecast for the year, perhaps thanks to Covid-19, who plays it cautiously in a very uncertain market. Nintendo still expects to sell 19 million switches and 140 million games, down from the previous year. If the trend of the first quarter continues, Nintendo may slightly exceed last year’s figures and this forecast, but of course there are still many factors, including the financial health of consumers and the supply chain problems that could arise in the event of further outbreaks. Nintendo will face fierce competition during the holiday season as Sony’s PlayStation 5 and Microsoft’s Xbox X series are about to be launched.
In the first quarter of this financial year, Nintendo launched all cylinders, both hardware and software, in very healthy numbers (more than double) compared to the first quarter of last year. A total of 5.68 million switching systems (+166.6%) and an incredible 50.43 million software products (+123%) were sold. One of the main factors contributing to this situation has been persistently high production and demand for crossbreeds: A new horizon for change, of which 10.63 million extra copies were sold, bringing the number of copies sold to 22.4 million! Nintendo’s internal figures show that more than half of the people who bought a new stake in the first quarter also chose Animal Crossing: New Horizons on the same day and played them. Talk about the system vendor! 40% of the first software sold in the quarter was Animal Crossing software, and about 50% of total sales were digital. The first two other festive games managed to break the one million mark with Xenoblade Chronicles: 1.32 million copies of the latest edition and 1.03 million copies of Clubhouse Games were sold.
Sales of digital switching products are increasing. This quarter, 101 billion yen was produced through an online store, compared to 30.6 billion yen last year. In fact, 55.6% of all software sold was digital. Downloadable versions of Switch software (the same games sold in retail) accounted for 67.7% of total digital sales, while more than 50% of game sales in clubs are digital.
To date, Nintendo Switch’s installation base includes 61.44 million systems and 406.67 million software sold. The connection speed of the games is faster than that of 3DS, which, with only 384.07 million units sold, has sold more software, but so far less. In the course of its existence, NES has sold 61.91 million systems and 500.01 million games. The changeover to the euro will take place during this financial year, which has probably already taken place in material terms, as this reference period does not include the months of July and August.
In terms of software, Mario Kart 8 Deluxe is still the best-selling product in the ranking, with 26.74 million units sold to date. However, animal crossing: The New Horizon was an amazing animal with 22.4 million copies sold. It is quite possible that it will take the lead in the next quarter if sales momentum continues. Other well-known evergreen products sell very well, such as the Super Smash brothers. The limit is 19.99 million copies sold, Zelda: Sales of Wildlife Breath – $18.6 million, Pokémon Sword/Shield – $18.22 million, Super Mario Odyssey – $18.06 million, Super Mario Party – $10.94 million, Plato 2 – $10.71 million and New Super Mario Brother U Deluxe – $7.44 million.
1. Consolidated operating results
Sales of Nintendo Switch began in the first quarter of this period (April to June 2020) with Xenoblade Chronicles Definitive Edition, released in May, reaching 1.32 million units, and Clubhouse Games : 51 Worldwide Classics, released in June, sold 1.03 million units. Even titles published in previous years continue to sell well because animals cross the border: The new horizon is at the top of the list with a turnover of 10.63 million units (out of a total sales volume of 22.40 million units). Sales of this title are still high, without losing momentum, contributing significantly to the overall growth of software sales. In addition, sales of publications from other software publishers continued to grow steadily, bringing the total number of titles sold in this period to nine, including publications from other software publishers. COWID-19 caused some difficulties in purchasing the parts needed to manufacture Nintendo Switch systems, but the overall production situation has almost recovered.
As a result of these factors, hardware and software sales increased to 5.68 million units on an annual basis (an increase of 166.6% on an annual basis) and software sales to 50.43 million units (an increase of 123.0% on an annual basis).
In terms of digital business for special gaming platforms, sales are up thanks to the good momentum generated by the release of downloadable versions of Nintendo Switch software and the popularity of L’île d’Armor, launched on January 17. The price of the Pokémon Sword Expansion Pass and Pokémon Shield Expansion Pass, the very first add-on content for the Pokémon line, has risen since June. Download-only games and Nintendo Switch Online also sold well, with a digital turnover of 101.0 billion yen (229.9% on an annual basis).
In the wireless industry, many consumers continue to use applications released in previous years, and our IP-based wireless revenues reached 13.2 billion yen (up 32.7% from the previous year).
Total turnover amounted to 358.1 billion yen, with a foreign turnover of 273.0 billion yen, or 76.3% of total turnover. Operating income was JPY144.7 billion, ordinary income was JPY150.3 billion and net income attributable to the owners of the parent company was JPY106.4 billion for the quarter.
2. Consolidated financial forecast
The original financial projections for this period, published on 7 December 2007, have been revised. The amendment to the Directive published on 1 May 2020 has not been amended.
For Nintendo Switch, in addition to games like Paper Mario : The Origami King (in July) and Pikmin 3 Deluxe (in October), we also plan to release The Crown Tundra, the second set of additional content available this fall in the Pokémon Sword Expansion Pass and Pokémon Shield Expansion Pass. There are also many interesting publications from other software suppliers on the program. We will strive to keep the platform active with new publications and increase sales of popular publications that are already for sale.
In our mobile business, we will focus on processes that encourage more consumers to keep playing with the applications already released.
Nintendo Financial Hardware Q1 FY2021
Nintendo Q1 FY2021 financial results
Craig has been working in the video game industry since 1995. His works have been published on various media sites. He is currently editor-in-chief and contributes to the Games Age.
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