Second Quarter Financial Results and Corporate Management Policy Briefing: Fiscal Year Ending March 2023

Nintendo achieved robust financial growth during the first half of the fiscal year ending March 2023, bolstered by favorable currency fluctuations and a resilient software ecosystem. Despite lowering the full-year hardware sales forecast to 19 million units in response to persistent global supply chain constraints, the company maintains a strong market position with an annual playing user base exceeding 106 million. Digital sales remain a significant contributor to revenue, reaching 359.6 billion yen, as the company prioritizes maximizing total software reach over strictly increasing digital-only sales ratios.

The core corporate strategy centers on the long-term cultivation of intellectual property through multi-generational engagement and diversified touchpoints. By expanding beyond traditional gaming into theme parks, merchandise, mobile applications, and visual content, the company successfully fosters a virtuous cycle of brand awareness. This ecosystem is anchored by the Nintendo Account system, which has scaled to over 290 million users, providing a centralized foundation for data-driven engagement and long-term consumer retention.

To sustain this growth, the company is investing heavily in digital infrastructure, including the formation of a joint venture with DeNA to enhance technical capabilities. Strategic capital allocation remains focused on research and development, mergers and acquisitions, and the production of high-quality visual content. Furthermore, the integration of environmental, social, and governance principles—specifically regarding energy-efficient hardware design and supply chain responsibility—serves as a critical component of the company’s ongoing operational framework. These efforts collectively aim to solidify a sustainable, integrated hardware-software model that transcends traditional industry boundaries.