Topic: Nintendo Announces Final Financial Results For 2023-24 Fiscal Year And 2024-25 Projections

[Shaymin]

In which Nintendo calls their shot on passing the DS.

http://www.nintendoworldreport.com/news/67109/nintendo-announces-final-financial-results-for-2023-24-fiscal-year-and-2024-25-projections

Nintendo has given the final earnings report of the Switch's seventh full fiscal year earlier today, and after revising their forecasts upward for the year - twice - have given their expectations for the now-present fiscal year as well.

All figures are annual, with separate numbers for the 4th quarter broken out. A comparison to the US dollar at a rate of $1 US = ¥154.459 - the press time market rate - is also provided for information only.

Full Year Results

Revenue: ¥1,671.892b (~$12.841b), up 4.4% compared to 2022-23

Operating income: ¥528.941b (~$4.062b), up 4.9%

Ordinary income (including foreign exchange gains): ¥680.497b (~$5.227b), up 13.2%

Digital sales: ¥443.3b (~$3.404b), up 9.2%: more than half of software sold (50.2%) was digital for the first time ever

Mobile/IP/other revenue: ¥92.7b (~$711m), up 81% for the year (includes all of Nintendo's cut of the Super Mario Bros. movie)

Fiscal Q4 (Jan - Mar) Results

Revenue: ¥277.096b (~$1.794b), down 9.6%

Operating income: ¥64.531b (~$417.8m), down 30.9%

Ordinary income: ¥113.14b (~$732.5m), down 4.6%

Digital sales: ¥96.9b (~$627.4m), up 1.7%

Mobile/IP/other revenue: ¥17.5b (~$113.2m), up 44.6%

Hardware Update

An additional 1.96m Switches across the three form factors were shipped in the 4th quarter for a new life-to-date for the platform of 141.32m. The shipments were 1.16m OLED, 460k standard, and 340k Lite in Q4.

For the year, this represents a total of 15.7m systems shipped, ahead of the company's estimate of 15.5m revised in February. The new LTD means the Switch needs to ship 12.71m more systems to become the best selling dedicated hardware ever sold by Nintendo ahead of the DS, and 17.39m to become the best selling dedicated game console ever ahead of the PlayStation 2.

Software - 4th quarter

Nintendo had three releases in the January to March window: Princess Peach: Showtime, the remake of Mario vs Donkey Kong, and the Another Code: Recollection collection.

Another Code did not appear on the million sellers list for the year, but Showtime shipped 1.22m in just over two weeks and Mario vs Donkey Kong shipped 1.12m copies. For comparison, last year's fiscal Q4 included three million sellers out of four and two titles (Fire Emblem: Engage, Kirby and the Forgotten Land) both shipped more than Peach.

Software - Catalogue

Mario Kart 8 Deluxe continues to lap the field in terms of game sales, adding another 1.39m to its total for a new LTD shipment count of 61.97m. Other highlights from the rest of the top 10 available here: It takes a minimum of 17.45m to break into the top 10 positions with New Super Mario Bros U Deluxe, Tears of the Kingdom's first fiscal year ends at 20.66m copies, and Animal Crossing: New Horizons has crossed 45m copies sold.

For software released this year, Super Mario Bros. Wonder added another 1.48m copies to finish the year as the second highest shipper behind the frontloaded Tears of the Kingdom with 13.44m copies. 20 games sold over a million copies in the fiscal year shipped by Nintendo, and 31 overall.

Estimates for 2024-25

• Revenue: Â¥1,350b
• Operating profit: Â¥400b
• Ordinary profit: Â¥420b
• Hardware: 13.5m Switches
• Software: 155m units of Switch shipped

If this hardware estimate is met, the Switch will pass the DS in early 2025 or later this year, more likely the former.

Other News:

The only addition to Nintendo's upcoming software slate was Pokemon Legends: Z-A, announced on February 27 and with a 2025 release window. Metroid Prime 4 remains "TBA".

Nintendo officially confirmed the delay of their Kyoto museum - originally slated for March - to the fall.

The "Donkey Kong" expansion of Super Nintendo World in Japan will be sometime in the second half of 2024, with the Super Nintendo World in Orlando coming online next year.

[Lemonade]

Interesting to see they forecast it to pass DS sales. It would be cool if it happens, but now that a new system is official, I think sales will drop like the end of Wii

[M.K.Ultra]

I didn't think the new system was official. They did not mention it in these results did they?

[M.K.Ultra]

Okay, I just saw the other article 

[Luigi Dude]

Interesting to see they forecast it to pass DS sales. It would be cool if it happens, but now that a new system is official, I think sales will drop like the end of Wii

You do realize they only need to sell over 13 million systems to surpass the DS?  The Wii still sold around 10 million units in 2011, which was the year they first announced the Wii U, and then it still sold around 4 million in 2012, the year the Wii U came out.  The Switch successor is not coming out this year and the Switch software is still selling way better then Wii software was it's second to last year, so the Switch sales for the rest of this year alone have a good chance surpassing the DS.

Plus the Wii still sold 1.22 million units in 2013, over 400k in 2014, and 100k in 2015.  That's over 2 million more Wii's sold after the Wii U came out.  With the Switch guaranteed to have better post life support then the Wii did, the Switch hardware will be guaranteed to sell a lot more then 2 million after it's successor is out.

At this point it is 100% guaranteed the Switch will surpass the DS at 154 million, and still has a good shot of surpassing the PS2 at 160 million.

[UncleBob]

"160 million". 🤣

[Luigi Dude]

"160 million". 🤣

Hey I'm just taking Jim Ryan at his word, even though Sony's own reports have the PS2 at 155 million.  Either way the Switch will still surpass either number by the time it stops selling.  I already said the Wii still sold an extra 2 million after the Wii U came out and that was a system with no support at the end of its life.  The DS managed to sell over 7 million more systems after the 3DS came out and the 3DS sold an extra 13 million after the Switch came out. 

Unless Nintendo outright stops making Switch hardware next year, it's pretty much guaranteed to surpass the PS2 in the next 2-3 years.

[UncleBob]

Yeah.  That's what Jim Ryan said.  Funny how Sony has never touted that figure in legal, financial disclosures. 🤣

Nintendo doesn't have a stellar track record of first party support once the new system launches,  But, yes, the Switch has some amazing third-party support.  That might be enough to carry it over the finish line, unless Nintendo does something stupid.

[Luigi Dude]

Nintendo doesn't have a stellar track record of first party support once the new system launches

We already know a sequel to Pokemon Legends is coming out next year.  Plus I expect the next mainline Pokemon game will still come out next Holiday as well for the Switch, similar to how Black and White came out for the DS after the 3DS was released.  Yeah in Japan Black and White came out before the 3DS but even there Black and White 2 come out over 1.5 year after the 3DS was released.  That was still a huge release for the original DS to have well after the 3DS .  I still expect several more remasters and remakes to hit the Switch in the next 2 years, since they'll be a cheaper way to still sell games to the Switch massive user base.  So I imagine the Switch post successor support will at least be similar to the DS and 3DS post successor lineup.

So if the DS could sell 7 million after its successor and the 3DS over 13 million, I don't see how the Switch doesn't at least do something between that range.  Unless they just stop making units next year which I find hard to believe when they still made 13 million more 3DS after the Switch was released and the 3DS was performing way worse toward the end of its life then the Switch is right now.

[UncleBob]

With the 3DS, even with the online features shut down, I think Nintendo could re-release the 3DS in stores right now and folks would snap them up.  It's legitimately insane the prices they're going for now.  I do think one thing that helped the 3DS sale is knowing there were so many amazing DS/3DS titles that you *cannot* play on Switch.  If the New Super Switch 2 U is 100% b/c with Switch, unless there is a significant price difference, I could see a lot of folks just buying the newer system.

That said, I don't see a *lot* of used Switches for sale.  They exist (definitely on-line), but it seems to be a seller's market, for sure.  If there's not a significant amount of used systems at the end of the life cycle (which, I think, happened with the 3DS, as most owner's chose to hang on to theirs), that'd help boost sales of the original as well.

We'll see.  I definitely am not counting Nintendo out.

[UncleBob]

Thinking more about this, I don't think a lot of folks traded in their 3DS to buy Switches because they couldn't play 3DS titles on the Switch.

Likewise, folks didn't trade in their DS to buy 3DS systems, since they'd lose that GBA compatibility.

I wonder how many GCN-Compatible Wii were even still on the market to buy when the Wii U came out.  I'd say the 2m that sold were for Wii support alone.  Maybe collectors picking up Minis at the end of life?

[broodwars]

Thinking more about this, I don't think a lot of folks traded in their 3DS to buy Switches because they couldn't play 3DS titles on the Switch.

I literally did that.

Likewise, folks didn't trade in their DS to buy 3DS systems, since they'd lose that GBA compatibility.

Yep, did that too. Especially back then, we game on a budget.

[UncleBob]

Sure, there were some people who did.  Sorry if I made it sound absolute.

[Luigi Dude]

f the New Super Switch 2 U is 100% b/c with Switch, unless there is a significant price difference, I could see a lot of folks just buying the newer system.

This is where the Switch Lite will play a major role.  The Switch Successor will probably cost $350 at the very least, so people that want the hybrid model the difference in price might not be as great, but for people wanting to buy the cheaper handheld only model for kids, that will be a big difference.  Especially since it's doubtful the Switch Successor will have a handheld only lite model until at least a year after launch.

Plus if Nintendo cuts the price of the regular Switch and Switch Lite either later this year or next year, and the Switch Lite is price at around $150, that right there will guarantee a few million Switch sales after the successor is released. 

[Caterkiller]

It's looking like the Switch will sell will into the Switch 2's early years. With cross gen gaming so much more of a thing these days I have to imagine some of Nintendo's smaller titles will get duel Switch/Switch2 releases.

What was the wording in regards to Pokemon Legends Z? Releasing simultaneously world wide? Simultaneously where? The Light and the OLED? That type of wording appears very deliberate and tells me we will see a Switch version and Switch 2 version for legends.

Games like that and the usual evergreens will probably keep late adopters coming and busy.

[Celinee]

Wow, the Switch is still killing it! I’m amazed it's so close to overtaking the DS. Looks like Nintendo's bet on more digital sales is paying off big time.