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Since the last set of financial reports Nintendo has enjoyed a positive E3 showing and unveiled the Switch OLED, giving us indications of why the company has remained optimistic of generating major profits this year. The headline summary is that the estimates given in the previous year-end results remain unchanged in today’s Q1 summary – Nintendo anticipates making a major profit this year.
Of course, these numbers will still be down significantly on 2020, a year in which unique and unprecedented global circumstances undoubtedly benefitted Nintendo’s business bottom-lines. Demand for entertainment was higher than ever before, and Switch consoles combined with software behemoths like Animal Crossing: New Horizons struck a nerve and sold in huge numbers.
Sales and profits for Q1 are unsurprisingly all down on their 2020/2021 equivalents, but as you can see in the breakdowns below Nintendo is still making significant profits, bolstering its already significant cash reserves.
- Net Sales – 322.6 billion Yen (approx $2.94 billion USD) – down 9.9% on previous year
- Operating Profit – 119.7 billion Yen (approx $1.09 billion USD) -17.3% down on 2020 equivalent
- Net Profit – 92.7 billion Yen (approx $846 million USD) -12.9% down on 2020 equivalent
The next quarter will include sales for The Legend of Zelda: Skyward Sword HD, for example, while Nintendo is also gearing up for a strong Q3 / Holiday season with major game releases and the Switch OLED model.
It’ll be interesting to see whether Nintendo continues to hit its targets through those vital periods.
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