Nintendo's latest financial report shows decreasing profits, but increasing hardware sales

What you need to know

• Nintendo Switch hardware has sold 4.45 million units in Q1 of FY22, down 21.7% from Q1 of FY21. -Seven first party titles sold over one million units in FY22/Q1, including New Pokémon Snap.
• These changes in profits may reflect how the global atmosphere has changed amidst the pandemic.

Nintendo has released their financial data regarding the first quarter of the financial year set to end in March of 2022. Nintendo's financial years run from April 1 to March 31 of the following year, so "FY22" refers to the period of time between April 1, 2021 and March 31, 2022.

Here are some data highlights:

Sales and profit

• Net sales — 322.6 billion JPY, down 9.9% compared to FY21/Q1.
  • From dedicated video game platforms — 308.9 billion JPY, down 10.3% compared to FY21/Q1.
  • From mobile and IP-related income — 13.1 billion JPY, down 0.6% compared to FY21/Q1.
  • From playing cards, etc. — 0.5 billion JPY, up 72.6% compared to FY21/Q1.
• Net profit — 92.7 billion JPY, down 12.9% compared to FY21/Q1.
• Digital sales — 75.9 billion JPY, down 24.9% compared to FY21/Q1.

Regional sales

• The Americas — 43.5% of global sales
• Europe — 24.2% of global sales
• Japan — 22.1% of global sales
• Other — 10.2% of global sales

Nintendo Switch hardware and software

• Hardware — 4.45 million units, down 21.7% compared to FY21/Q1.
  • Nintendo Switch — 3.31 million units, up 8.3% compared to FY21/Q1.
  • Nintendo Switch Lite — 1.14 million units, down 56.7% compared to FY21/Q1.
• Software — 45.29 million units, down 10.2% compared to FY21/Q1.
  • Digital software — 46.9% of total software sales, down 8.7 points compared to FY21/Q1.

Compared to the massive profits Nintendo experienced in their previous financial year, things are looking a bit bleak. However, readers should take into consideration that this is only a report of the April, May and June combined in comparison to those months in the previous financial year. Sales may improve after some of Nintendo's announced titles release, such as Pokémon Brilliant Diamond and Shining Pearl, which is set to release on November 19, 2021.

Another thing to note is the timing. Nintendo's sales were up in Q1 of FY21 for a number of reasons. Firstly, the global pandemic had begun to affect more countries in earnest, and people purchased video games en masse to keep them busy during nationwide lockdowns and quarantine. The second important factor is the release of Animal Crossing: New Horizons, which accounted for 40% of Nintendo's total software sales in FY2021.

Overall, sales were down in almost every category compared to Q1 of FY21. The Nintendo Switch Lite had notably lower sales at 1.14 million units, down 56.7% compared to FY21/Q1. However, Nintendo Switch sales increased by 8.3% compared to Q1 of FY21, up to 3.31 million units. The fact that competing consoles have been difficult for consumers to obtain may play a part in Switch hardware increasing.

Nine titles sold over one million copies, seven of which are Nintendo-published titles. New Pokémon Snap sold the most, selling over 2 million units. The evergreen titles continued to sell well this quarter, including Mario Kart 8 Deluxe and Ring Fit Adventure, with 1.69 and 1.15 million units respectively.

As for other titles released this year, Mario Golf: Super Rush sold 1.34 million units, Super Mario 3D World + Bowser's Fury sold 1.09 million units, and Miitopia sold 1.04 million units. For a sports game and two ports from the Wii U and Nintendo 3DS, games have sold considerably well this quarter.

Here are Nintendo's best-selling titles of this quarter:

1. New Pokémon Snap — 2.07 million units
2. Mario Kart 8 Deluxe — 1.69 million units
3. Mario Golf: Super Rush — 1.34 million units
4. Animal Crossing: New Horizons — 1.26 million units
5. Ring Fit Adventure — 1.15 million units
6. Super Mario 3D World + Bowser's Fury — 1.09 million units
7. Miitopia — 1.04 million units

The end of the report details their plans for the rest of the year, including titles like WarioWare: Get It Together! and Metroid Dread, as well as hardware like the Nintendo Switch OLED Model. We're looking forward to how things change in the coming months, and hope that Nintendo will continue to put out stellar titles.

What games are you looking forward to this year? Let us know in the comments!