Nintendo has announced its quarterly financial results, showcasing a significant milestone for the company's flagship gaming console, the Nintendo Switch. The company continues to thrive in the gaming industry, with hardware sales exceeding 139 million units as of December 31, 2023.
Heading into 2024: Nintendo's main business
During a conference call following the release of the financial report, Nintendo President Shuntaro Furukawa made a significant statement. He affirmed that the current Nintendo Switch model would remain the company's “main business” heading into 2024. Notably, Furukawa refrained from divulging any details about potential new hardware plans, keeping fans and analysts in suspense.
Upgraded forecasts and a healthy holiday season
Nintendo's optimism for the future is reflected in its raised forecasts for hardware sales and overall profit for the fiscal year ending in March. The company anticipates selling 15.5 million additional Switch units by the end of the fiscal year, an increase of half a million units. Furthermore, they project an additional 5 million software units sold. These boosted forecasts follow a prosperous holiday season for Nintendo.
Steady sales and impressive growth
Despite being in its seventh year on store shelves, the Nintendo Switch sells above expectations. The slight year-on-year decrease in overall sales, down 6%, was smaller than anticipated, underscoring the console's enduring popularity. Speculation surrounding new Nintendo hardware persists, but the Switch remains the undisputed star of Nintendo's business.
Impressive financial metrics
Nintendo's financial report also highlighted several impressive metrics. Gross profit increased by 11.5% year-on-year while operating profit rose by 13.1%. The “mobile and IP-related business” category saw a staggering 93.4% increase in sales. This growth can be attributed to elevated movie-related sales and increased royalty income.
OLED model leads the way
The financial report delved into the breakdown of Switch SKU sales. Notably, the OLED model emerged as the most popular choice, experiencing increased sell-through compared to the same period in the previous year. Demand for this model wasn't limited to first-time buyers; it also attracted those seeking additional or replacement units.
Record number of players
In 2023, the number of users enjoying Nintendo Switch software reached an all-time high, surpassing 122 million. This achievement further solidifies the console's position as a beloved platform for gaming enthusiasts worldwide.
Hardware sales breakdown
Here's a closer look at the hardware sales figures for the first three quarters of the fiscal year:
- Total Switch hardware sales (April-December 2024): 13.74 million
- Total Standard Switch sales (April-December 2024): 3.4 million
- Total Switch OLED sales (April-December 2024): 8.17 million
- Total Switch Lite sales (April-December 2024): 2.18 million
Looking ahead: Anticipation for ‘Switch 2'
While Nintendo's financial success is undeniable, fans and industry analysts eagerly await news of a potential ‘Switch 2'. Although speculation continues to swirl, Nintendo appears to be in no rush to make any announcements at this time.
Nintendo's impressive sales figures and robust financial performance paint a promising picture for the company as it enters 2024. With the Nintendo Switch firmly established as their flagship product, fans can only speculate about what the future holds for the gaming giant.
