Nintendo Financial Results Explanatory Material: 3rd Quarter of Fiscal Year Ending March 2024

The financial results for the first nine months of the fiscal year ending March 2024 demonstrate robust growth for Nintendo, characterized by increased profitability despite a decline in hardware unit sales. For the period spanning April 1 to December 31, 2023, net sales rose 7.7% year-on-year to 1,394.7 billion yen, while operating profit grew 13.1% to 464.4 billion yen. This performance was largely driven by the depreciation of the yen, a favorable shift toward higher-margin first-party software, and significant growth in the company’s mobile and intellectual property-related business, which saw a 93.4% revenue increase.

The dedicated video game platform segment remains the core of the business, though hardware unit sales for the Nintendo Switch family declined by 7.8% to 13.74 million units. Despite this, the platform maintained stability in its seventh year, supported by strong demand for the OLED model and a record-breaking 122 million annual playing users. Software performance was bolstered by the successful launches of titles such as The Legend of Zelda: Tears of the Kingdom, Pikmin 4, and Super Mario Bros. Wonder, the latter of which reached 10.70 million units in global sell-through by the end of the third quarter. Digital sales also contributed significantly, rising 11.7% to 346.4 billion yen and accounting for 48.1% of total software sales.

Reflecting these trends, the company upwardly revised its full-year consolidated earnings forecast. The updated outlook projects 1,630.0 billion yen in net sales and 510.0 billion yen in operating profit. The company also increased its annual unit sales projections for both hardware and software, now targeting 15.50 million and 190.00 million units, respectively. Moving forward, the strategy remains focused on maximizing software engagement and expanding the reach of Nintendo intellectual property through strategic partnerships, including the continued expansion of theme park attractions.