Nintendo FY3/2025 Q1 Financial Results
DOCUMENTS
Financial Results Explanatory Material
Consolidated Financial Highlights
HIGHLIGHTS
Switch sells 2.1m units during Q1 (-46.3% down YoY)
Switch LTD sales have reached 143.42m
Everyone is freaking out over this the huge drops found on this graphic here:
Net sales down. Operating profit down. Net profit down over 55%. It all looks terrible but Nintendo is still making money - just not as much money as it did last year during this time. And that’s easily explained by the two juggernauts released last Spring - Super Mario Bros. Movie and The Legend of Zelda: Tears of the Kingdom.
Switch hardware forecast remains 13.5m. Meaning Nintendo would have to ship 11.4 million units during the rest of the fiscal year. Many on Twitter/X have pointed out that the Switch sold 11.8 million units from July 2023 to March 2024 - meaning Switch sales from here on out would essentially have to match last years performance.
That’s going to be tough.
Nevertheless, I believe Nintendo can achieve this with strategic, value-added bundles. It might be time to introduce a Player's Choice line and consider reducing the Switch's price. As of this writing, the console has gone 2,718 days without a price drop—equivalent to 7 years, 5 months, and 8 days. With the next system set to be unveiled before the end of the fiscal year, a price cut, along with Player's Choice editions and enticing bundles, could significantly boost Switch sales. I anticipate Nintendo will consider these options in Q3 or Q4.
In other news, during the quarter, the PS5 outsold the Switch by only 300,000 units.
Software number changes (shout out to mazi over at Installbase forums for always being on top of these numbers each quarter):
Mario Kart 8 Deluxe - 62.90M (+930K)
Animal Crossing: New Horizons - 45.85M (+490K)
Super Smash Bros. Ultimate - 34.66M (+440K)
The Legend of Zelda: Breath of the Wild - 32.05M (+200K)
Super Mario Odyssey - 28.21M (+250K)
Pokémon Sword and Shield - 26.35M (+80K)
Pokémon Scarlet and Violet - 25.29M (+370K)
Super Mario Party - 20.84M (+180K)
The Legend of Zelda: Tears of the Kingdom - 20.80M (+190K)
New Super Mario Bros. U Deluxe - 17.61M (+160K)
Paper Mario: The Thousand-Year Door - 1.76M
Princess Peach: Showtime! - 1.30M (+80K)*
Luigi's Mansion 2 HD - 1.19M
Paper Mario and Luigi’s Mansion 3, originally released for GameCube and 3DS respectively, performed exceptionally well last quarter. Personally, I'm thrilled that a new generation can experience Paper Mario: The Thousand-Year Door—it's such an incredible game. With not much hardware pushing sales in Q3, I anticipate the quarter to remain relatively flat overall. Q3 will be crucial in determining whether Nintendo can meet their forecast for the year. We'll have to wait and see.