Consolidated Results for the Three Months Ended June 30, 2021

Nintendo Co., Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending March 31, 2022, covering the period from April 1, 2021, to June 30, 2021. The company experienced a year-over-year decline in financial performance, primarily attributed to a high baseline in the previous year driven by the significant success of Animal Crossing: New Horizons. Net sales for the quarter reached 322.6 billion yen, a 9.9% decrease compared to the same period in 2020, while operating profit fell 17.3% to 119.7 billion yen.

Hardware and software sales for the Nintendo Switch platform reflected this cooling trend, with hardware units totaling 4.45 million and software units reaching 45.29 million, representing year-over-year declines of 21.7% and 10.2%, respectively. Despite these decreases, the company maintained a strong portfolio of million-seller titles, including New Pokémon Snap, Miitopia, and Mario Golf: Super Rush. Digital sales for the platform also saw a contraction, totaling 75.9 billion yen, a 24.9% decrease from the prior year. Overseas markets remained the primary revenue driver, accounting for 77.9% of total net sales.

The company maintained its original full-year financial forecast, citing ongoing risks related to the global semiconductor shortage and the potential impact of COVID-19 on production and shipping. Strategic initiatives for the remainder of the fiscal year include the release of several high-profile titles and the introduction of a new Nintendo Switch model featuring an OLED display. The financial statements reflect the adoption of new accounting standards for revenue recognition and fair value measurement, which had no material impact on overall profit or loss for the quarter.