Consolidated Financial Highlights: Nine Months Ended December 31, 2024

Key insights

6 takeaways

01
Nintendo experienced a significant financial contraction for the nine months ended December 31, 2024, with net sales falling 31.4% to 956.2 billion yen and operating profit dropping 46.7% to 247.6 billion yen.See it on page 1
02
The Nintendo Switch platform saw a 30.6% decline in hardware unit sales and a 24.4% decrease in software unit sales compared to the same period in the previous fiscal year.See it on page 3
03
Profit attributable to owners of the parent decreased by 41.9% to 237.2 billion yen, largely due to the absence of the high-performing film revenue and major title releases that bolstered the prior year's results.See it on page 3
04
International markets remain critical to the company's financial health, accounting for 76.5% of total net sales for the nine-month period.See it on page 5
05
Despite the downturn, the company maintains a strong financial position with total assets of 3,386.9 billion yen and a capital adequacy ratio of 79.5%.See it on page 4
06
Management has revised its full-year financial forecasts for the fiscal year ending March 31, 2025, citing current sales trends and updated foreign exchange rate assumptions.See it on page 1

Summary

Nintendo’s consolidated financial results for the nine months ended December 31, 2024, reflect a period of contraction compared to the same timeframe in the previous fiscal year. Net sales reached 956.2 billion yen, representing a 31.4% decline, while operating profit fell by 46.7% to 247.6 billion yen. Profit attributable to owners of the parent also saw a significant decrease of 41.9%, totaling 237.2 billion yen. These results were heavily influenced by a year-over-year decline in hardware and software sales, which had been bolstered during the prior period by major title releases and the commercial success of The Super Mario Bros. Movie.

The company’s primary business segment, the Nintendo Switch platform, experienced a 30.6% drop in hardware unit sales and a 24.4% decrease in software unit sales. Despite these declines, the platform maintained steady engagement in its eighth year, supported by the performance of titles such as The Legend of Zelda: Echoes of Wisdom and Super Mario Party Jamboree. Digital sales and mobile/IP-related revenue also saw double-digit percentage decreases, the latter largely due to the absence of the high audience engagement associated with the previous year’s film release.

Geographically, the company remains heavily reliant on international markets, which accounted for 76.5% of total net sales. As of December 31, 2024, total assets stood at 3,386.9 billion yen, with a strong capital adequacy ratio of 79.5%. In response to the performance through the third quarter, management has revised its full-year financial forecasts for the fiscal year ending March 31, 2025, citing both sales trends and a reevaluation of assumed foreign exchange rates. The company continues to focus on invigorating the Switch platform through a steady pipeline of new software releases.