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Nintendo Releases Third Quarter Fiscal 2019 Financial Results

by Donald Theriault - January 30, 2020, 3:43 am PST
Total comments: 10 Source: Nintendo

Was it Poké-heaven or hotel hell?

At the close of the Japanese business day earlier today, Nintendo released their financial results for the third fiscal quarter of the 2019-20 fiscal year. This is Nintendo's holiday quarter, with the biggest events of the quarter being the launches of Luigi's Mansion 3 and Pokémon Sword & Shield.

All monetary figures reported in yen, with comparisons to the US dollar based on a market rate of $1 = ¥108.895 provided for comparison only.

Financial Results

  • Operating income: ¥168.707b for Q3, up ¥10.083b year over year (~$1.549b/$92.593m)
  • Ordinary net income: ¥188.688b for Q3, up ¥40.352b YOY (~$1.732b/$370m)
  • Revenue: ¥578.701b for Q3, down ¥29.689b YOY (~$5.314b/$272m)
  • Digital sales: ¥53.2b for Q3, up ¥8.2b YOY (~$488m/$75m)
  • Mobile revenue: ¥17b for Q3, up ¥2.4b YOY (~$156m/$22m)

Hardware Shipments

Switch: 10.91m for the quarter of which 3.24m were Switch Lites, new LTD 52.58m, has passed the Super Nintendo's 49.1m lifetime shipments and needs to ship 9.33m to pass the Famicom/NES. It has also been estimated to have passed the Xbox One, though this isn't confirmed as Microsoft does not release shipment numbers for hardware.

3DS: 170,000 for the quarter, new LTD 75.45m.

Software Shipments

Pokémon Sword and Shield combined: 16.06m, already the 5th best selling Switch game.

Luigi's Mansion 3: 5.37m.

Super Smash Bros Ultimate: 1.97m (LTD 17.68m)

Mario Kart 8 Deluxe: 3.95m (22.96m)

The Legend of Zelda: Breath of the Wild: (Switch only): 1.8m (16.34m)

Super Mario Odyssey: 1.21m (16.59m)

Pokémon Let's Go Pikachu/Eevee: 480,000 (11.76m)

Super Mario Party: 1.53m (9.12m)

Fire Emblem: Three Houses: 290,000 (2.58m)

The Legend of Zelda: Link's Awakening HD: 1.06m (4.19m)

Super Mario Maker 2: 1.11m (5.04m)

Ring Fit Adventure (2.17m), Astral Chain (1.03m) and Marvel Ultimate Alliance 3: The Black Order (1.02m) also became million sellers this quarter.

New Software information:

No changes to the software schedule: Bayonetta 3, Metroid Prime 4, and the sequel to Breath of the Wild are still "TBA".

Estimate Updates

Nintendo has increased their estimate for Switch hardware this fiscal year to 19.5m units from 18m units. Total shipments year to date are already 17.74m.

Talkback

TOPHATANT123January 30, 2020

Good result for Astral Chain

nickmitchJanuary 30, 2020

Impressive results, and I like that they're increasing their Switch sales forecasts.  Good on them.

I will say that gross revenue being slightly down is weird next to the increase in net income.  I wonder if it means they slowed down on R&D this quarter.

I suspect most of that is because of the Switch Lite: it is $100 less.

Luigi DudeJanuary 30, 2020

Those software results continue to be insane.  Smash Bros, Mario Odyssey, Breath of the Wild and Pokemon are all on track to selling 20 million plus copies.  I mean Pokemon isn't as surprising, but Smash Bros, 3D Mario and especially Zelda have never come close to those numbers.  And Mario Kart 8 is easily going to cross the 30 million mark and depending on how long Nintendo keeps the Switch alive, could even surpass Mario Kart Wii.  Of course if you combine the Switch and Wii U version of that game it's already at 31.4 million which is less then 6 million away from Mario Kart Wii.  So the return on investment they put into the development of that game has more then made up for itself.

Oh and it should be noted that Links Awakening remake doing 4.19 million means it's surpassed the original GB game which did 3.8 million.  So anyone that was wondering why Nintendo was charging full price for a remake of a over 25 year old Gameboy game has the answer, because they can.  That's the advantage a company that has retained consistence quality over it's franchises for decades can do.  People see Mario or Zelda on the box, they knew they're probably getting a good time with it and have no problem paying full price, even if some consider said games too short to warrant the price.

I mean, that's pretty much the message to all the huge numbers these games are getting on Switch.  Nintendo has been operating at a higher level of quality for decades now and people know there products are top notch, but there's been something holding them back from buying the systems they're on.  The home consoles usually had droughts and the handhelds generally put off a certain percent of the gaming population that doesn't like to play on portable devices.  The Switch has the strengths of both home console and handheld, with non of their individual weakness keeping some back.  So we are seeing the results of a Nintendo system that has the widest appeal to all types of gamers, casual and hardcore, young and old, so I guess the results shouldn't be so surprising that almost every franchise is seeing record breaking sales.

Mr. BungleJanuary 30, 2020

After the switch passes the NES/Famicom the next milestone is the 3DS which is currently at 75.7 million units.

KhushrenadaJanuary 30, 2020

Quote from: Mr.

After the switch passes the NES/Famicom the next milestone is the 3DS which is currently at 75.7 million units.

Nooooooooo!!! Hasn't the Switch taken enough from the 3DS already?  :'( :'(

Astral Chain, Luigi's Mansion 3, and Ring Fit Adventure's success is really cool. Good for those games.

nickmitchFebruary 02, 2020

Quote from: Shaymin

I suspect most of that is because of the Switch Lite: it is $100 less.

Yeah, but even for that to be true, the Switch Lite would have to have a higher contribution margin ratio than the OG Switch.  I don't know if that's true at the lower price point, even with the removed features.  I did see somewhere that the OG Switch's contribution margin was improving, so I think that might be it.

Mop it upFebruary 04, 2020

Is there any indication of how much Daemon X Machina sold? Seems like this game was quickly forgotten about, so I guess it bombed.

Nintendo only published it outside Japan, so it definitely didn't sell a million outside Japan or they would have mentioned it (see: Dragon Quest IX). I'm assuming we're talking something in the Wonderful 101 range which is... suboptimal.

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