Continuing Switch Success and Hit Titles Drive Strong Financial Results for Nintendo
Nintendo has increased its profit forecast for the current financial year as the Nintendo Switch continues to perform remarkably well following the launches of Zelda: Tears of the Kingdom and The Super Mario Bros. Movie.
The company recently disclosed its financial results for the six months ending on September 30, 2023, revealing a substantial 21.2% year-on-year growth in sales to ¥796.2 billion (approximately $5.3 billion). Additionally, there was a remarkable 27% year-on-year profit increase to ¥279.9 billion (around $1.9 billion). Nintendo emphasized that the sales achieved in the first half of the fiscal year were the most significant since the debut of the Nintendo Switch in March 2017.
As a result of this strong performance, Nintendo has revised its profit projection for the financial year ending March 30, 2024, to ¥420 billion (approximately $2.8 billion), up from the previous projection of ¥340 billion (about $2.3 billion).
Amid widespread anticipation for Nintendo’s next-generation console, the Nintendo Switch experienced an uptick in sales, even as it approaches its seventh anniversary. In the six-month period, Nintendo sold 6.84 million Switch units, reflecting a 2.4% year-on-year increase. Among these, the more expensive OLED model led the way, with 4.69 million units sold, followed by the standard Switch at 1.25 million units and the Switch Lite at 900,000 units, bringing total Nintendo Switch sales to 132.46 million units.
A closer look at game sales reveals that Zelda: Tears of the Kingdom has performed exceptionally well, with 19.5 million copies sold. The success of The Super Mario Bros. Movie, the highest-grossing video game film, contributed to a sales boost of 3.22 million copies for Mario Kart 8 Deluxe. Notably, Mario Kart 8 Deluxe has now reached a staggering 57 million copies sold, securing its status as the best-selling Nintendo Switch game. Additionally, Pikmin 4 sold 2.61 million copies.
Looking ahead, Nintendo has an exciting lineup of titles, with Super Mario RPG set to launch later this month, followed by Mario vs. Donkey Kong in February, Princess Peach: Showtime! in March, and Luigi’s Mansion 2 HD expected in summer 2024. Furthermore, Paper Mario: The Thousand-Year Door is slated for release next year, and the release window for Metroid Prime 4 is still to be announced.
While Nintendo enjoyed robust success during the six-month period, it’s evident that Nintendo Switch sales are showing a downward trend. The console sold nearly 18 million units in the previous financial year, compared to 23 million in the year prior and 28 million in the year before that. The sales forecast for the Nintendo Switch for this financial year remains at 15 million units.
Nintendo is anticipated to launch its next-generation console sometime in 2024, with reports indicating that development kits have been distributed to partner studios. This “Switch 2” is rumored to feature portable mode like the original Switch, with an LCD screen to control costs and a cartridge slot for physical games. However, the crucial question of backward compatibility with Nintendo Switch games remains uncertain.
In May, Nintendo stated that its long-rumored Switch successor wouldn’t be released until at least April 2024 and later announced a new game in The Legend of Zelda series, ruling out Tears of the Kingdom DLC. It appears likely that this new Zelda game will debut on Nintendo’s forthcoming console.