Since the last set of financial reports Nintendo has enjoyed a positive E3 showing and unveiled the Switch OLED, giving us indications of why the company has remained optimistic of generating major profits this year. The headline summary is that the estimates given in the previous year-end results remain unchanged in today's Q1 summary - Nintendo anticipates making a major profit this year.
Of course, these numbers will still be down significantly on 2020, a year in which unique and unprecedented global circumstances undoubtedly benefitted Nintendo's business bottom-lines. Demand for entertainment was higher than ever before, and Switch consoles combined with software behemoths like Animal Crossing: New Horizons struck a nerve and sold in huge numbers.
Sales and profits for Q1 are unsurprisingly all down on their 2020/2021 equivalents, but as you can see in the breakdowns below Nintendo is still making significant profits, bolstering its already significant cash reserves.
- Net Sales - 322.6 billion Yen (approx $2.94 billion USD) - down 9.9% on previous year
- Operating Profit - 119.7 billion Yen (approx $1.09 billion USD) - down17.3% on previous year
- Net Profit - 92.7 billion Yen (approx $846 million USD) - down 12.9% on previous year
The next quarter will include sales for The Legend of Zelda: Skyward Sword HD, for example, while Nintendo is also gearing up for a strong Q3 / Holiday season with major game releases and the Switch OLED model.
It'll be interesting to see whether Nintendo continues to hit its targets through those vital periods.
[source nintendo.co.jp]
Comments 22
"Demand for HOME entertainment was higher than ever before", as cinema chains and amusement parks would grimly correct.
You mean they aren't Nintendoomed? Again?
That can't be right. What excuses can we use today... hmm... "stupid fanboys"? No they use that too much... "fake news"? No, too political... oh I know how about the calm before the storm claim?
Yeah! This is just the calm before the real failure starts!
#Nintendoomed
Should have released the OLED with a crank to power it. It's the future.
Considering sales of the hybrid model were still up over the same period last year, it's clear that Animal Crossing was the main driver of the Lite Model. I'm sure the OLED model we'll help offset some of those sales.
It's always good to try and put a positive slant on what is a negative result.
But the lack of AAA games to date and the rest of this year and yet another delay with BotW and the lack of news about a Switch Pro all contributed to the poor figures. No surprise.
With all the delayed games , the lame oled model, I turned my back on Nintendo and gave my money to Microsoft instead, and I'm sure a lot of people did the same.
@Pokester99 I don't think that's Nintendo intent and it's likely more beneficial of them buy their own stocks back because investors have less control over the company, meaning more creativity from Nintendo. Just look at EA, a company controlled by investors in a huge way, because there was little control against investors, those investors were able to turn EA into an extremely money hungry company.
But yeah let's go with the sentiment that everything Nintendo does is evil. Not saying that they don't make strange decisions, you have a point with the Joy Cons (lol), but come on, so you even know anything about stocks?
@Pokester99 You don’t know what you’re talking about. It’s common practice for large companies to bet on themselves and buy shares. This is a strategic move and happens all the time. It’s legal, smart, and benefits shareholders.
Last year Q1 was primarily during lockdown for many countries, so of course at home entertainment would've been at an all time clip during that stretch including the release of Animal Crossing, so it's not too surprising profits were down a notch year over year with many things opened up again.
between other forms of entertainment being unavailable and the other two consoles impossible to find, 2020 was a unique storm that won't repeat. And that is not a judgement for or against Nintendo - its just how the dice were rolled
truly this time nintendo is completely doomed
Make 5 kajillion dollars one year. Make 4 kajillion the next. PRoFits are DOwN!
@Lordplops
Better hardware doesn't necessarily guarantee better games. Game developers are simply straying too far from the hardware capabilities.
@Pokester99 You need to check your math, because you put 2 and 2 together and somehow came up with 5.
Jeez even though Nintendo is doing extremely well financially, going over these numbers really shows how small in scale the company is compared to Microsoft and Sony's financials.
Anyhow, good for them.
@munstahunta oh well, bye… 👋
Removed - disrespecting others
This year just sucks in general, even Sony and Microsoft had their profit dropped as well. With a bad E3 showing which was saved at the last moment by Nintendo, a bunch of nonsense leaks that people still believes in, then we had Covid returning with the Delta variant, the joycon drift debacle, Sony's terrible State of Play, Valve Steam Deck announcement, Microsoft continuous DRM services, the PlayStation emos battery debacle, Sony's gaming division leaving Japan for America, the Square Enix mobile garbage offerings, the continuous downfall of the Amico, the boring launch of the Atari VCS, the continuous scalping of the PS5 & Xbox Series X, the death of Stadia's own studio, the announcement of Netflix getting into the cloud gaming scene, the Switch OLED announcement, etc. Too many bad with little goods.
"As expected" has never been more true. Hell, if a company posts back to back financials at 800% to target it's either fraud of a deal with the devil.
A drop off on last year was of course to be expected given the circumstances. Nintendo had factored that into their forecasts so it’s a very good quarter. Very high margins. The steady pace of releases (MH Rise at the end of the last quarter, plus Pokemon and Mario spin offs and Miitopia) will have helped.
Can't wait for NintenDoomed fandom to harp on this one for every bloodmoney it has. Console sales has up and downs but if they manage it right it will work out in the end(pun).
Animal crossing inflated the last year, nothing to fret over
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