Nintendo Q1 Financial Results: 4% Decline In Hardware, 121% Increase In Software YoY

Nintendo has released its financial results for first quarter of the 2019 fiscal year (April – June 2018). Although Switch hardware sales were slightly down when compared to the same timeframe last year with 1.88 million units sold (-4.4%), the company reported 17.96 million pieces of software were sold (+120.8%). The 3DS appears to be on its last legs with only .36 million sold for the three months, representing a drop of 61.9% when compared to last year. Software came in at 2.95 million, a 49.6% decrease.

We got some insight into how well some recent Switch releases have been selling. Mario Tennis Aces has already sold 1.38 million copies. Donkey Kong Country: Tropical Freeze put up a respectable 1.40 million and the Nintendo Labo series reached 1.39 million. Sales of downloadable versions of packaged software and DLC brought in 18.5 billion yen, a 68% increase year over year.

Nintendo’s mobile market seems to have plateaued at the moment with its games bringing in 9 billion yen, a .4% increase over last year. It has two more games in development: Dragalia Lost and Mario Kart Tour, both of which will be out this fiscal year.

The NES Classic Edition has been selling well since it was brought back out on June 29, selling 1.26 million units with just two days in the reporting period. It’s obvious demand has yet to be satisfied in this sector of the market, and if Nintendo can provide adequate supply it should continue to sell well throughout the rest of the year, especially as Christmas approaches.

Comparing apples to apples, Nintendo’s Net Sales from April – June of this year were 168.1 billion yen versus 154.1 billion the same time last year. Operating Profit this year for the first quarter was 30.5 billion compared to only 16.2 billion the year prior. Thanks no doubt to the increase in software sales the profitability of the company has increased (margins are higher on software versus hardware).

The Nintendo Switch’s cumulative sales are now sitting at 19.67 million worldwide, of which 1.88 million of those were sold in Quarter 1 (the last 3 months). Total Switch software is sitting at 86.93 million sold, of which 17.96 million were sold in the last 3 months. Nintendo is still forecasting 20 million Switch systems sold during this fiscal year. That means they still have to sell roughly 18 million more over the next 9 months! That seems like a lofty target and the only way we see them hitting it is by announcing a price cut or some really good bundle deals for the holidays. The power of Pokémon: Let’s Go, Pikachu! and Super Smash Bros. Ultimate will certainly help shift systems, but 18 million more is a hard ask.

Evergreen titles on the Switch continue to put up impressive numbers. Super Mario Odyssey is currently the best selling game on the system with 11.17 million copies sold. Mario Kart 8 Deluxe is just behind it with 10.35 million and The Legend of Zelda: Breath of the Wild is at 9.32 million. Check out more data below!

 

 

Nintendo Q1 Financials

 

Craig has been covering the video game industry since 1995. His work has been published across a wide spectrum of media sites. He’s currently the Editor-In-Chief of Nintendo Times and contributes to Gaming Age.

Craig Majaski

Craig has been covering the video game industry since 1995. His work has been published across a wide spectrum of media sites. He's currently the Editor-In-Chief of Nintendo Times and contributes to Gaming Age.

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