Consolidated Financial Highlights: Six Months Ended September 30, 2024

Nintendo’s consolidated financial results for the first half of the fiscal year ending March 31, 2025, reveal a significant year-on-year contraction in performance across all major financial metrics. Net sales fell by 34.3% to 523.2 billion yen, while operating profit declined by 56.6% to 121.5 billion yen. Profit attributable to owners of the parent saw a 59.9% decrease, totaling 108.6 billion yen. These results reflect a challenging comparison to the previous year, which benefited from the high-profile release of The Legend of Zelda: Tears of the Kingdom and the global success of The Super Mario Bros. Movie.

The downturn is primarily driven by declining hardware and software volumes as the Nintendo Switch enters its eighth year. Hardware sales reached 4.72 million units, a 31% decrease, while software sales fell 27.6% to 70.28 million units. Despite the overall decline, the platform maintained engagement with nine million-seller titles during the period, led by The Legend of Zelda: Echoes of Wisdom and Paper Mario: The Thousand-Year Door. Digital sales also saw a 26.5% reduction, and mobile/IP-related revenue dropped 43.3% due to the absence of movie-related income that bolstered the prior year’s figures.

Geographically, the business remains heavily export-oriented, with international sales accounting for 74.7% of total revenue. The financial position remains stable with a capital adequacy ratio of 82.6%, though total assets decreased slightly to 3.07 trillion yen. In response to first-half performance falling below initial expectations, full-year forecasts have been revised downward. The updated outlook projects annual net sales of 1.28 trillion yen and an operating profit of 360 billion yen, representing year-on-year decreases of 23.4% and 31.9%, respectively. Management intends to mitigate these trends by focusing on upcoming software releases and maintaining the "multiple systems per household" strategy.