Nintendo report a strong start to their fiscal year

Despite the lack of flagship releases the first quarter of Nintendo’s fiscal year has proved to be very successful. In their report for the three months ending June 30, 2018, Nintendo reported a 9.1 percent increase in net sales, rising to $1.5 billion for the period from $1.38 billion the same time last year.

Similarly operating profit was also up year-on-year, rising from $145.4 million last year to $274 million this year, an increase of around 90 percent. Nintendo’s ordinary profit also rose, up to $393.6 million this year from $277.9 million in 2017, a total increase of 41 percent year-on-year.

Software sales are down 4.4 percent year-on-year, but Nintendo have actually made more software sales this year than in 2017 by almost double at around 18 million games. The platform holder also sold 1.8 million Switch units bringing the total Switch units sold to almost 20 million. A key part of why software sales are down this year is that this time last year is when the console launched, with first party titles such as ARMS, The Legend of Zelda: Breath of the Wild, and Mario Kart 8 Deluxe Edition driving game sales.

The most impressive titles that have filled Q1 this year have been Donkey Kong Country Tropical Freeze, Nintendo Labo, and Mario Tennis Aces. Some say that these games are less impressive, but Nintendo insists that each has sold more than 1 million copies. Donkey Kong Country: Tropical Freeze has sold 1.4 million units, Mario Tennis Aces has sold 1.38 million units, and the combination of Nintendo Labo kits have sold 1.39 million units.

Nintendo Switch sales have now reached 19.67 million units sold, and Nintendo expect the console to reach their expectations of 20 million units sold by March 2019. So far 86.93 million Switch games have been sold, with Nintendo aiming for 100 million sales by the end of the fiscal year.

Nintendo reported that 3DS sales are still going strong, with 360,000 sold in the quarter and 2.95 million games. They also reported growth in digital game sales, up by 68 percent year-on-year to $166.1 million.

Nintendo mobile games are up slightly by 0.4 percent up to $80.8 million. Dragalia Lost, Nintendo’s first new IP, is still planned for release in summer 2018, with Mario Kart Tour due for release before March 31, 2019.

Even with this relatively successful first quarter Nintendo isn’t revising its forecasts for the financial year. Ordinary profit is predicted to rise to $2.06 million, operating profit is predicted to rise to $2.02 billion, and net sales are predicted to rise to $10.8 billion by March 2019.

Already Q2 is looking strong, with September bringing the launch of Nintendo Online, Captain Toad: Treasure Tracker having released, and a new Nintendo Labo Kit on the way.