Nintendo has unveiled its Q1 financial results (covering 1st April to 30th June), including some solid numbers for the Nintendo Switch and its games. Those looking for dramatic increases in projections and confidence will be left disappointed, however, with the company’s core sales estimates remaining the same despite a quick start to the year.
To start with the core numbers there are notable positives for Nintendo. For starters net sales of 154,069 million Yen (a tasty $1378 millionUSD, approximately) represent the best Q1 results in that area since 2011, a period when the 3DS was new on the scene and the Wii was still contributing decent numbers. In fact Nintendo also enjoyed its first Q1 operating profit since 2011 too, with its core business earning 16,208 million Yen (about $145 millionUSD); that figure represents money made from the important business of making and selling products,
For over five years Nintendo has often struggled to make profits in the first few months of the financial period, so these Q1 results clearly show some positives. As is also normal for the Q1 results, though, Nintendo isn’t revealing or saying a great deal beyond the main figures. As mentioned in our introduction, however, there’s some disappointment that major game and product announcements from June in particular have not prompted upward sales revisions. Despite repeated assurances of boosting Switch hardware manufacturing, for example, the full year sales target for the system remains unchanged.
The sales so far and projections (the latter of which are unchanged from the annual financial report from April) are below.
Hardware Sales (Q1) — 1.97 million units
Hardware Sales (life to date) — 4.7 million units
Hardware Sales Projection (2017 to 2018) — 10 million units
Software Sales (Q1) — 8.14 million units
Software Sales Projection (2017 to 2018) — 35 million units
Hardware Sales (Q1) — 950,000 units
Hardware Sales (life to date) — 67.08 million units
Hardware Sales Projection (2017 to 2018) — 6 million units
Software Sales (Q1) — 5.85 million units
Software Sales Projection (2017 to 2018) — 40 million units
Also of interest, Nintendo gave an exact figure for smart device-related income in Q1, naturally including money made from the likes of Super Mario Run and Fire Emblem Heroes. Income from this area was 9,062 million Yen (approximately $81 millionUSD).
The broader financial projections for this financial year — 1st April 2017 to 31st March 2018 — are also unchanged, estimating healthy profits. Net sales are still expected to hit 750,000 million Yen, a hefty 53.3% increase over the previous year that would take the company’s sales back towards the levels enjoyed in the late Wii / DS period. Operating profit (which reflects the core success of making and selling products) is also expected to jump by 124% compared to the previous year with a projection of 65,000 million Yen.
A steady set of results, with Nintendo nonetheless opting not to revise up its sales estimates; that could all still change in later financial reports for Q2 and beyond, of course.