Consolidated Financial Highlights: Six Months Ended September 30, 2021

Key insights

7 takeaways

01
Nintendo experienced a year-over-year contraction for the six months ending September 30, 2021, with net sales falling 18.9% to 624.2 billion yen and operating profit dropping 24.5% to 219.9 billion yen.See it on page 1
02
The financial downturn was primarily driven by a difficult comparison to the prior year's exceptional performance, which was heavily bolstered by the success of Animal Crossing: New Horizons.See it on page 3
03
Hardware unit sales declined by 34.0% to 8.28 million units, while software sales saw a more moderate decrease of 6.3% to 93.89 million units.See it on page 3
04
Overseas markets remain critical to the company's financial health, accounting for 78.3% of total net sales during this period.See it on page 6
05
Digital sales fell 15.9% to 144.2 billion yen, while mobile and IP-related income remained stable at 25.5 billion yen.See it on page 8
06
Management has revised full-year financial forecasts downward, citing ongoing risks from the global semiconductor shortage and the broader impact of COVID-19.See it on page 3
07
Strategic efforts to drive platform engagement for the remainder of the fiscal year include the launch of the Nintendo Switch (OLED Model) and the expansion of the Nintendo Switch Online service.See it on page 3

Summary

The consolidated financial results for Nintendo Co., Ltd. for the six-month period ending September 30, 2021, reflect a period of year-over-year contraction following the exceptional performance of the previous fiscal year. Net sales reached 624.2 billion yen, representing an 18.9% decline compared to the same period in 2020. Operating profit fell by 24.5% to 219.9 billion yen, while profit attributable to owners of the parent decreased by 19.4% to 171.8 billion yen. This downturn is primarily attributed to the high baseline set in the prior year, which was bolstered by the significant market success of Animal Crossing: New Horizons.

Hardware and software unit sales saw notable declines, with hardware sales dropping 34.0% to 8.28 million units and software sales decreasing 6.3% to 93.89 million units. Despite these declines, the company maintained strong engagement with its Nintendo Switch platform, supported by new releases such as The Legend of Zelda: Skyward Sword HD and New Pokémon Snap. Digital sales for the period totaled 144.2 billion yen, a 15.9% decrease, while mobile and IP-related income remained relatively stable at 25.5 billion yen.

Geographically, the company continues to derive the majority of its revenue from overseas markets, which accounted for 78.3% of total net sales. Looking ahead, the company has revised its full-year financial forecasts, citing ongoing uncertainties related to the global semiconductor shortage and the broader impact of COVID-19. Strategic initiatives for the remainder of the fiscal year include the introduction of the Nintendo Switch (OLED Model), the expansion of the Nintendo Switch Online service, and a robust pipeline of new software titles to drive platform engagement.