Nintendo Second Quarter Financial Results and Corporate Management Policy Briefing: Fiscal Year Ending March 2022

Nintendo is navigating a transitional period in the fiscal year ending March 2022, characterized by a year-over-year decline in sales and profits following the unprecedented success of previous breakout titles. Despite these headwinds and global semiconductor shortages that necessitated a reduction in hardware shipment targets to 24 million units, the company maintains a positive outlook by raising full-year profit and software sales projections. This optimism is anchored in the continued vitality of the Nintendo Switch platform, which benefits from a diverse library of evergreen titles, the introduction of the OLED model, and a record-breaking ecosystem of over 6,700 third-party software offerings.

The core strategy centers on reinforcing the integrated hardware-software business model while aggressively expanding the reach of Nintendo’s intellectual property beyond traditional gaming. By leveraging 250 million Nintendo Accounts and 32 million Nintendo Switch Online subscribers, the company is fostering deeper, long-term consumer relationships. This expansion is supported by a significant 450 billion yen investment earmarked for internal software development, infrastructure enhancements, and non-gaming entertainment ventures, including theme parks, merchandise, and visual media such as the upcoming Super Mario film.

These strategic initiatives are designed to create a self-sustaining cycle that consistently drives consumers back to the core hardware platform. Alongside these growth efforts, the company remains committed to a disciplined financial framework, prioritizing shareholder returns through a payout policy based on operating profit and dividend ratios. Furthermore, Nintendo is integrating environmental, social, and governance standards into its corporate management, emphasizing workplace diversity and transparency to ensure sustainable long-term value creation across its global operations.