Nintendo reported its financial results for the first half of fiscal 2025. All key company metrics are down.
Financial Metrics:
▫️Nintendo's net sales fell by 34.3% year-over-year to 523.2 billion yen ($3.44 billion).
▫️The majority of this revenue was generated outside Japan—74.7%. North and South America accounted for a total of 44.6% of revenue. This was followed by Japan (25.3%) and Europe (22.4%).
▫️Operating profit decreased by 56.6%, totaling 121.5 billion yen ($799.9 million). Nintendo attributes this to increased expenses.
▫️Net profit was 108.6 billion yen ($760.24 million), which is 59.9% less than the previous year.
▫️The company explained the revenue decline by the persistently weak yen and decreased demand for the Nintendo Switch.
▫️In light of current results, Nintendo has lowered its forecasts for the entire fiscal year 2025: expected sales are now projected at 1.28 trillion yen ($8.4 billion) and operating profit at 360 billion yen ($2.37 billion). This is 5.2% and 10% lower than previous estimates, respectively.
Data on Nintendo Console and Game Sales:
▫️From April to September 2024, 4.72 million Nintendo Switch consoles were sold—31% less than the previous year.
▫️Although the OLED version remained the most popular (2.5 million units), its sales fell by 46.8% year-over-year. However, demand for the standard and Lite versions slightly increased (by 0.7% and 7.5%).
▫️The growth in the latter is attributed to the release of the Nintendo Switch Lite: Hyrule Edition in September.
▫️Total sales of the Nintendo Switch have reached 146 million units.
▫️The number of game copies sold amounted to 70.28 million, a decline of 27.6%.
▫️The company attributes the decline in sales to the fact that last year's high results were due to the release of The Legend of Zelda: Tears of the Kingdom and the Super Mario Bros. Movie. Currently, such factors are absent. Additionally, the Switch has been on the market for eight years, and interest in the platform is understandably waning.
▫️This year, Nintendo has nine million-selling games, including six of its own development. The leader was Legend of Zelda: Echoes of Wisdom (2.58 million copies), followed by remakes of Paper Mario: The Thousand-Year Door (1.94 million) and Luigi’s Mansion 2 HD (1.57 million).
▫️Nintendo President Shuntaro Furukawa stated that despite the current half-year's financial results, Nintendo still plans to announce its next console by April 2025. However, the exact release date for the Switch successor has not yet been disclosed.