Decline is not a dirty word when you come out of two years exceptionally boosted by a global pandemic inviting players around the world to stay at home. Although down from last year, Nintendo’s business remains at a very solid level, particularly in its ability to achieve profits that everyone can envy. Quarterly sales amounted to 2.2 billion euros (down 5%) while operating profit reached 750 million euros (down 15%). The net profit is an exception and escapes the decline thanks to favorable exchange rates (Nintendo generates 80% of its turnover outside of Japan). For the full fiscal year ending March 31, 2022, Nintendo expects revenue of 11.8 billion euros, operating profit of 3.7 billion euros and net profit of 2.5 billion euros, in other words a return to the pre-pandemic level (2019).
The good deal for spring 2022 is Nintendo Switch Sports, which has 4.84 million copies distributed worldwide, while Mario Strikers: Battle League Fiootball begins with 1.91 million copies sold. Nintendo is also not unhappy with the endurance of Kirby and the Forgotten World which now totals 4.53 million copies (including 1.88 million between April and June) not to mention the untouchable Mario Kart 8 Deluxe which adds 1.48 million copies out of a total of 46.82 million. In all, 41.41 million Switch games were distributed between April and June, down 8.6% from the same quarter a year earlier. The Switch now sits on 863 million games distributed worldwide and is getting ever closer to the Nintendo DS house record (948 million games).
Decline also for Switch sales which reached 3.43 million consoles over the quarter (including 1.52 million OLED), which represents a drop of 23% compared to last year (4.45 million) . A decline that Nintendo attributes to supply shortages of semiconductors and other components rather than the natural wear and tear of a console entering its 6th year. With 111 million machines installed worldwide, the Switch is approaching the podium of the best-selling consoles in history and is already challenging the Nintendo DS (154 million) and the PS2 (more than 155 million). Notable detail, Nintendo maintains its objective which is to deliver 21 million Switches over the fiscal year, which would bring the console’s total to 128 million at the end of March 2023. As a reminder, the PS4 counter has just stop at 117 million.
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