Nintendo Financial Results Explanatory Material: 1st Quarter of Fiscal Year Ending March 2025

Nintendo’s financial results for the first quarter of the fiscal year ending March 2025 reflect a significant year-on-year decline in performance, primarily driven by the absence of major software releases and hardware-driving events that characterized the same period in the previous year. Net sales fell by 46.5% to 246.6 billion yen, while operating profit dropped 70.6% to 54.5 billion yen. This downturn is attributed to the Nintendo Switch platform entering its eighth year, leading to a natural cooling in hardware and software unit sales compared to the high-performing first quarter of the prior fiscal year, which benefited from the release of The Legend of Zelda: Tears of the Kingdom and the impact of The Super Mario Bros. Movie.

Despite the overall decline, the company maintains a stable foundation with over 128 million annual playing users. While hardware sell-in decreased by 46.3% to 2.10 million units, the gross profit margin improved slightly to 61.8%, bolstered by a higher proportion of digital sales and the depreciation of the yen. Digital sales accounted for 58.9% of total software revenue, demonstrating the continued importance of the digital ecosystem even as total software unit sales fell by 41.3%.

Management has opted to maintain its previously announced consolidated financial forecast for the full fiscal year, projecting 1.35 trillion yen in net sales and 400 billion yen in operating profit. The company’s strategy remains focused on maximizing the lifecycle of the Nintendo Switch through a consistent release schedule of new titles, such as The Legend of Zelda: Echoes of Wisdom and Super Mario Party Jamboree, alongside ongoing efforts to expand its intellectual property reach through film projects, theme park expansions, and the upcoming opening of the Nintendo Museum.