Nintendo Financial Results Explanatory Material: Fiscal Year Ended March 2024

The financial results for the fiscal year ending March 31, 2024, demonstrate a period of sustained growth for Nintendo, characterized by increased net sales and profitability despite a decline in hardware unit volume. The company reported net sales of 1,671.8 billion yen, a 4.4% increase over the previous fiscal year, and an operating profit of 528.9 billion yen, representing a 4.9% rise. This performance was bolstered by favorable foreign exchange rates and a significant 81.6% surge in mobile and intellectual property-related income.

The core business remains centered on the Nintendo Switch platform, which achieved its highest annual playing user numbers since the console's launch. While overall hardware sales decreased by 12.6% to 15.70 million units, the OLED model maintained steady demand. Software sales reached 199.67 million units, supported by strong performance from major titles such as The Legend of Zelda: Tears of the Kingdom and Super Mario Bros. Wonder. Digital sales continued to grow, accounting for 50.2% of total platform software sales, reflecting a broader industry shift toward digital distribution.

Geographically, the company maintains a global footprint, with 78.3% of sales generated outside of Japan. The fiscal year also saw increased investment in research and development, which rose by 25.2% to 137.7 billion yen, alongside higher advertising expenditures. Looking ahead to the next fiscal year, the company projects a contraction in both sales and profit as the Nintendo Switch platform matures. Forecasts anticipate hardware sales of 13.50 million units and software sales of 165.00 million units, signaling a strategic transition period as the company continues to leverage its intellectual property across diverse media formats.