Consolidated Results for the Three Months Ended June 30, 2022

Nintendo’s consolidated financial results for the three months ended June 30, 2022, reflect a period of mixed performance characterized by hardware supply constraints offset by strong digital growth and favorable foreign exchange gains. The company reported net sales of 307.4 billion yen, a 4.7% decrease compared to the same period in the previous year, and an operating profit of 101.6 billion yen, down 15.1%. Despite these declines in core operational metrics, ordinary profit rose by 29.6% to 166.7 billion yen, largely driven by 51.7 billion yen in foreign exchange gains resulting from the depreciation of the yen.

The primary driver of business activity remained the Nintendo Switch platform. Hardware sales totaled 3.43 million units, representing a 22.9% year-on-year decline attributed to semiconductor and component shortages. Software sales also saw a slight contraction, falling 8.6% to 41.41 million units. Conversely, the digital business demonstrated resilience, with sales increasing 16.0% to 88.0 billion yen, bolstered by strong performance in downloadable software and Nintendo Switch Online subscriptions. Mobile and IP-related income declined by 16.8% to 10.9 billion yen.

Geographically, the company maintained a strong international presence, with overseas sales accounting for 79.9% of total net sales. The financial position remains robust, with total assets of 2.58 trillion yen and a capital adequacy ratio of 78.7%. Looking ahead, the company has maintained its original financial forecast for the fiscal year ending March 31, 2023, anticipating net sales of 1.6 trillion yen. Management intends to sustain momentum through a robust software release schedule, including titles such as Splatoon 3 and Pokémon Scarlet and Violet, while navigating ongoing manufacturing and logistics risks. Additionally, the company announced a 10-for-1 stock split effective October 1, 2022, aimed at increasing share liquidity and expanding the investor base.