As was already known, this is the financial year that will bring us Nintendo's NX system, though the company isn't yet ready to reveal details despite reports that may have outed key details on the platform. What we do have are the Q1 financial results, which as expected don't reflect a dramatic increase in fortunes thanks to Pokémon GO; in fact, it's business as usual.
To begin with the nuts and bolts of the financial figures — covering 1st April 2016 to 30th June 2016 — we have net sales of just 61,969 million Yen (approximately $586.6 million), which is down 31.3% on the equivalent period last year. The limited and low impact of releases since 1st April is also reflected in the bottom line, with a net income loss of 24,534 million Yen (approx $232.2 million), following a modest profit in the same period in the previous year. The core business of making and selling products also brought a small operating loss of 5,134 million Yen, which is roughly $48.6 million; currency exchange losses were also cited.
The financial report says the following regarding these figures, providing sales updates on key releases:
During the three-month period ended June 30, 2016, for Nintendo 3DS, Kirby: Planet Robobot, which was released globally, showed steady sales. In the U.S., BRAVELY SECOND: END LAYER was released, and in Europe, Fire Emblem Fates: Birthright/Conquest was released and both titles got off to a good start. As a result, the worldwide sales of Nintendo 3DS hardware and software were 0.94 million (7% decrease on a year-on-year basis) and 8.47 million units (7% increase on a year-on-year basis) respectively.
With respect to Wii U, in addition to titles such as Star Fox Zero/Guard and Mario & Sonic at the Rio 2016 Olympic Games, which were released globally, Splatoon and Super Mario Maker which were released during the prior fiscal year showed steady sales. The global sales of Wii U hardware and software were 0.22 million (53% decrease on a year-on-year basis) and 4.68 million units (3% increase on a year-on-year basis) respectively.
For amiibo, the figure-type and the card-type sales remained at approximately 1.70 million units and 1.30 million units respectively mainly due to a lack of new titles that are compatible with amiibo. Download sales decreased year on year because sales of in-game downloadable content were down.
The notable issue there is with amiibo, which is down on the previous equivalent period in sales; as Nintendo states, a lack of new supporting titles likely contributed to that drop.
Nintendo is sticking to its previously stated estimates for the whole financial year, also affirming that NX launch sales are factored into those projections - an operating profit of 45,000 million Yen, around $425.9 million, and a net income profit of 35,000 million Yen, roughly $331.3 million. Pokemon Sun and Moon and Mario Party Star Rush have been highlighted as key 3DS titles, while NX, Pokemon GO Plus (which is delayed a little, we'll cover that in detail elsewhere) and upcoming mobile titles for Animal Crossing and Fire Emblem will also be notable contributors.
Moving on to hardware and software sales, the numbers are all very modest. With the 3DS there's an ambition to boost its fortunes through Pokemon and growing key audiences, but the Wii U is still expected to ship under one million units this year.
Hardware Sales (Q1) — 220,000 units
Hardware Sales (life to date) — 13.02 million units
Hardware Sales Projection (2016 to 2017) — 800,000 units
Software Sales (Q1) — 4.68 million units
Software Sales Projection (2016 to 2017) — 15 million units
Hardware Sales (Q1) — 940,000 units
Hardware Sales (life to date) — 59.79 million units
Hardware Sales Projection (2016 to 2017) — 5 million units
Software Sales (Q1) — 8.47 million units
Software Sales Projection (2016 to 2017) — 55 million units
None of the projections have changed for Wii U and 3DS, which is unsurprising as the major releases for both platforms are yet to come. In the case of 3DS the numbers are modest but reflect a system still relevant on the marketplace, while the Wii U figures demonstrate that Nintendo is simply letting it wind down.
We'll provide more detailed coverage throughout the day, but let us know what you think of these figures in the comments below.