Financial Results Explanatory Material Fiscal Year Ended March 2025

The financial results for the fiscal year ending March 2025 reflect a period of significant contraction for the company, characterized by a year-over-year decline across all primary performance metrics. Net sales fell by 30.3% to 1,164.9 billion yen, while operating profit decreased by 46.6% to 282.5 billion yen. This downturn was largely driven by a 30.9% decline in revenue from the dedicated video game platform segment, which remains the company’s core business, accounting for the vast majority of total sales.

The decline in performance is attributed to a cooling demand for the aging Nintendo Switch hardware, which saw unit sales drop from 15.70 million in the previous fiscal year to 10.80 million. Software sales also experienced a contraction, falling 22.2% to 155.41 million units. Despite these headwinds, the company maintained a robust digital sales strategy, with the proportion of digital revenue increasing by 3.3 percentage points to 53.5% of total platform software sales. Geographic distribution of revenue remained heavily weighted toward international markets, with 76.4% of sales generated outside of Japan.

Looking ahead to the fiscal year ending March 2026, the company projects a recovery, forecasting net sales of 1,900.0 billion yen and an operating profit of 320.0 billion yen. This optimistic outlook is anchored by the planned launch of the Nintendo Switch 2 hardware on June 5, 2025, supported by a robust pipeline of new software titles and upgrade packs. The company continues to leverage its intellectual property through diverse channels, including visual content and theme park expansions, while maintaining a focus on long-term engagement through its established user base of over 100 million annual playing users.