Nintendo Releases Q2 Financial Results for Fiscal Year 2024-25 – News

As the day wrapped up in Japan, Nintendo shared their financial results for the July to September quarter. These results revealed a downward adjustment in their expectations for the first time in quite a while.

To give you an idea of the numbers involved, all financial figures are quoted in yen. For a quick conversion, the rate is ¥152.224 to $1.

Financial Indicators

• Revenue: Came in at ¥276.661 billion (roughly $1.817 billion), marking a 19.78% drop compared to last year.
• Operating Income: Tallied at ¥67.003 billion (about $440 million), down by 29.21%.
• Ordinary Income: Reached ¥33.631 billion (approximately $221 million), a decrease of 73.36%.
• Digital Sales: Accounted for ¥79.2 billion (around $520 million), down 19.1%, with digital formats comprising 56.3% of their software for the fiscal year.
• Mobile and IP Revenue: Slipped to ¥16.5 billion (close to $108 million), reflecting a 28.88% decline.

Hardware Shipments

Turning to hardware, the Nintendo Switch has now sold a total of 146.04 million units over its lifetime, with 2.62 million units shipped this quarter alone. This includes 1.26 million OLED models, 720,000 standard Switch models, and 640,000 Switch Lites. It’s worth noting that this quarter’s special edition was the Echoes of Wisdom-branded Lite.

In terms of surpassing sales milestones, the Switch would need another 7.98 million sales to overtake the DS, and 12.66 million to catch the PlayStation 2.

New Software

Nintendo launched three new games this past quarter, in contrast to just one, Pikmin 4, in the same period last year. Leading the pack is The Legend of Zelda: Echoes of Wisdom with 2.58 million units moved in its first five days. Meanwhile, Nintendo World Championships: NES Edition and Emio: The Smiling Man Famicom Detective Club haven’t crossed the million-unit mark yet.

Regarding updates to previous releases, Paper Mario: Thousand Year Door remaster shipped 1.94 million units and Luigi’s Mansion 2 HD tallied 1.57 million units.

Catalogue Sales

The top ten game rankings remain as they were, with Mario Kart 8 Deluxe hitting 64.27 million units in lifetime shipments. Impressively, Pokémon Scarlet and Violet are on track to surpass Sword and Shield to become the second best-selling series in the Pokémon franchise history.

Other Announcements

Nintendo noted ¥22.4 billion in foreign exchange losses, a stark contrast to the ¥30.6 billion in gains they reported during the first quarter, contributing to the sharp dip in operating income.

Additionally, they’ve adjusted several forecasts, all heading downwards. They’ve cut revenue projections by 5.2% to ¥1280 billion, reduced operating profit expectations by 10% to ¥360 billion, lowered Switch hardware shipment forecasts from 13.5 million to 12.5 million units, and adjusted software expectations from 165 million units down to 160 million, acknowledging the general slowdown in Switch sales as it enters its eighth year.