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Nintendo
Distilling the key insights…
Nintendo’s fiscal strategy for the nine months ending March 2017 centers on a dual-platform approach, leveraging the established success of the 3DS while aggressively transitioning into the Nintendo Switch era. The 3DS remains a vital revenue driver, bolstered by the global popularity of Pokémon Sun and Pokémon Moon, which surpassed 13 million units in sell-through. By utilizing the affordable 2DS hardware, the company has successfully broadened its demographic reach to include younger players and female consumers, establishing a foundation that will continue to operate alongside the Switch.
The company is simultaneously diversifying its portfolio to mitigate fluctuations in peripheral and digital sales. While amiibo and digital content experienced a decline during this period, the smart-device segment has emerged as a key growth area, evidenced by the strong performance of Super Mario Run and the introduction of Fire Emblem Heroes. This digital expansion complements the March 2017 launch of the Nintendo Switch, for which the company set an ambitious global shipment target of two million units for the fiscal year.
To sustain long-term momentum for the Switch, the strategy emphasizes a robust software pipeline featuring high-profile first-party titles and support from over 70 third-party publishers currently developing more than 100 games. Operational efficiency is also a priority, as demonstrated by the formation of Nintendo Sales Co., Ltd., a new subsidiary designed to unify product development and supply chain management. By balancing legacy hardware with new mobile initiatives and a rapidly growing Switch ecosystem, the company aims to stabilize its market position and enhance its responsiveness to global consumer demand.
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