Nintendo Q1 2024 Financial Results

Nintendo’s financial results for the first quarter of the fiscal year ending June 30, 2024, reflect a significant downturn in performance as the Switch console enters its eighth year on the market. The company reported revenue of ¥246.6 billion, representing a 46.5% decline compared to the same period in the previous year. This contraction is primarily attributed to the absence of major software releases and the lack of high-performing catalysts similar to the previous year’s launch of The Legend of Zelda: Tears of the Kingdom and the success of The Super Mario Bros. Movie.

Profitability metrics also experienced sharp declines, with operating profit falling 70.6% to ¥54.5 billion and net profit decreasing by 55.3% to ¥80.9 billion. Hardware sales mirrored this downward trend, with 2.1 million Switch units sold, a 46.3% year-over-year decrease. Despite these declines, the Switch reached a lifetime sales milestone of 141.32 million units, maintaining its position as the third best-selling console in history. Furthermore, the platform’s engagement remains robust, with the number of annual playing users rising to 128 million.

Geographically, the company remains heavily reliant on international markets, which accounted for 74.2% of total sales, with the Americas representing the largest share at 44.3%. While digital sales as a percentage of total revenue increased to 58.9%, overall digital revenue still fell by 32.6% in currency terms. Looking ahead, Nintendo maintains its conservative full-year forecast, anticipating continued declines in both revenue and net profit as the current hardware cycle matures.