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Nintendo 2016 Fiscal Year Earnings Release: Targeting 10 million Switches this f-year

R

Rösti

Unconfirmed Member
Nintendo Switch: 2.74 million units shipped
The Legend of Zelda: Breath of the Wild: 3.84 million (2.76 Switch, 1.08 Wii U)
Pokémon Sun & Moon: 15.44 million
Nintendo Switch Hardware Forecast Apr. '17-Mar. '18: 10 million
Nintendo Switch Software Forecast Apr. '17-Mar. '18: 35 million
(1) Operating results for the fiscal year ended March 31, 2017

Nintendo Switch, a new home console system that diversifies the ways you can play games, launched during this period on March 3
worldwide and is off to a promising start. In particular, The Legend of Zelda: Breath of the Wild has won immense popularity with
recorded sales of 2.76 million units (the total units sold including the Wii U version is 3.84 million units) and 1-2-Switch has been
generating buzz. Both of these games were released at the same time as the hardware. The sales volume for hardware and software
during this period reached 2.74 million units and 5.46 million units respectively.
Sales volume for the Nintendo 3DS software also grew favorably. In addition to Pokémon Sun and Pokémon Moon, which released
worldwide in November and generated a tremendous amount of buzz with recorded sales of 15.44 million units, Super Mario Maker for
Nintendo 3DS sold 2.34 million units and Kirby: Planet Robobot sold 1.36 million units.

The release of the smart device application
Pokémon GO led to increased sales of software in the Pokémon series and drove the Nintendo 3DS family hardware sales growth
outside of Japan. The worldwide sales volume for the Nintendo 3DS hardware this period was 7.27 million units (7% increase on a
year-on-year basis), while the Nintendo 3DS software sales volume reached 55.08 million units (14% increase on a year-on-year basis).
For Wii U, while The Legend of Zelda: Breath of the Wild released worldwide in March and reached sales of 1.08 million units, the
Wii U software sales volume during this period was 14.8 million units (46% decrease on a year-on-year basis) and hardware sales were
in alignment with our expectations at the start of the fiscal year, decreasing to a sales volume of 760 thousand units (77% decrease on a
year-on-year basis).

On the smart device front, we released Super Mario Run, a new action game application featuring Mario, in December for the iOS
and March for the Android. This title elicited a fantastic response from consumers worldwide. Furthermore, we released Fire Emblem
Heroes, a full-fledged simulation RPG game application that can be enjoyed casually on smart devices, in February. The game is being
enjoyed by both long-time fans of the Fire Emblem series and consumers who have never played the series on dedicated video game
systems.

The Nintendo Entertainment System: NES Classic Edition also launched in Japan and overseas in November to widespread
popularity. Although the release of some new titles offering amiibo functionality restored some momentum, amiibo sales remained
limited to 9.1 million units for figure-type and 9.3 million units for card-type. In addition, there were relatively fewer offerings of
downloadable content during this period, so digital sales were also down to a large extent on the same period last year.
These factors resulted in an operating profit of 489.0 billion yen against net sales of 29.3 billion yen (of which 359.0 billion yen, or
73.4% of the total sales, were overseas sales). We have also included 50.3 billion yen share of profit of entities accounted for using the
equity method related to The Pokémon Company and other investments, resulting in an ordinary profit of 20.2 billion yen. In addition,
due to the sale of part of our equity in the company that manages the Seattle Mariners Major League Baseball team, we recorded gain
on sales of investment securities totaling 64.5 billion yen as extraordinary income, meaning that the net profit attributable to owners of
parent was 102.5 billion yen.
2. Outlook for the Fiscal Year Ending March 31, 2018

Regarding Nintendo Switch, we will maintain buzz about The Legend of Zelda: Breath of the Wild and 1-2-Switch, which are off to a
phenomenal start, and release Mario Kart 8 Deluxe in April and ARMS in June worldwide. We will release Splatoon 2 in July. Splatoon
2 exemplifies the concept of Nintendo Switch, enabling consumers to play anywhere, anytime, and with anyone, and will bring
competition between consumers to new levels of excitement. In addition, we will maintain favorable conditions surrounding Nintendo
Switch by providing a continuous stream of appealing third-party titles across varying genres. We aim to stimulate the platform and
expand sales going into the holiday season this year.

Total sales volume for the Nintendo 3DS hardware worldwide has surpassed 66 million units and it has developed into a platform that
we can rely on for software sales.

We will release Fire Emblem Echoes: Shadows of Valentia overseas in May (April in Japan) and plan to release Ever Oasis and Hey!
Pikmin in June and July. Furthermore, this year is Kirby’s 25th anniversary, so we are planning to release downloadable titles and a
new multiplayer action game for Nintendo 3DS. Third-party developers have also announced major titles for Nintendo 3DS. During
this period we will continue striving to maintain the momentum of the platform and to reach a broader audience, including females and
children, across the world.

In the smart-device business, we released three game applications during this period, each with different playstyles and profit models.
We were able to present opportunities for consumers who had never played Nintendo games before and those who live in regions we
had previously been unable to reach to experience Nintendo’s intellectual property (Nintendo IP) and the different worlds featured in
Nintendo games. Going forward we will endeavor to expand our smart-device business by making use of the experience we have
gained so far to provide new game applications, while also focusing on continued operations for our released applications so that
consumers can enjoy playing them for a long time.

Based on these efforts, we project a net sales of 750.0 billion yen, an operating profit of 65.0 billion yen, an ordinary profit of 60.0
billion yen and a net profit attributable to owners of parent of 45.0 billion yen. Unit sales of the major products used for the forecast are
listed on page 15 under the heading of “(4) Consolidated sales units, number of new titles, and sales units forecast" in the "Others"
section. Exchange rate assumptions for the major currencies used for the forecasts are 105 yen per US dollar and 115 yen per euro.
Source: https://www.nintendo.co.jp/ir/pdf/2017/170427e.pdf

Supplementary Information about Earnings Release: https://www.nintendo.co.jp/ir/pdf/2017/170427_6e.pdf
 

Cerium

Member
cage_bliss.gif
 

Hanmik

Member
Zelda with a 1:1 attachment rate on the Switch..

DAMN....

The Legend of Zelda: Breath of the Wild shipped 2.76 million Switch and 1.08 million on Wii U. that is 3.84 million for Zelda..
 
If I'm not mistaken, Zelda needed to sell 2 million to break-even.
So that's 1.83 million of profit for Zelda.

Great seeing Nintendo back on top again.
 

Thoraxes

Member
Huh, wonder if they're going to be able to hit their projection and basically pass up the Wii U in a year.

With the positive conversation now, it seems like it could at least be realistic.
 
It's said in almost every sales thread but the attach rate for BotW on the Switch is something console manufacturers only dream of, even at launch
 

Orbit_shadow

Neo Member
They are only expecting 10 mil switch consoles to be shipped next fiscal year?

So by march 17 2018, a total of 12.74million consoles.

Hmm.. As much as I would like to care, does this make any implication regarding the existence of Pokémon Stars? (Numbers seem a bit low tbh, could be supply constraint?)

:p
 

Hanmik

Member
So the WiiU didn't sell in the last 3 months..? so the final number of units must be around 13,5 Million units.. that machine bombed...
 

Zedark

Member
Wow, 2.74 million! That's amazing! Oh, and guys, thr Zelda number is shipped, it didn't outsell Switch when it comes to sell-through to consumers (we know attach rate isn't 1:1 everywhere).

And hot damn at Zelda shipping nearly 4 million, great result!
 

JoeM86

Member
Nintendo plans to ship 10 million Switch units this fiscal year.

That's going to be another forecast they just wreck
 
Zelda Switch is doing absolutely unbelievable business. Surely a worldwide 1:1 ratio is unprecedented?

Also, I reckon it's likely that Sun and Moon has X and Y overturned within 6 months.
 
In upcoming title, they list FE warriors in EU/NA but not JP, and Odyssey is only listed in NA. I know it means nothing, but why? :p
 

Striek

Member
For the year they ended up surprisingly close to where they thought from the start despite the highs and the lows. Missed operating income a bit but still got there with ordinary. Switch is off to a very good start but other than that the disparity between the results and the reaction ITT is pretty funny.

Forecasts for next year-

Switch: 10 million HW, 35 million SW
3DS: 6 million HW, 40 million SW
Wii U: 3 million SW

----------

Mainly impressed with that 3DS HW forecast if they can realise it. Also they're expecting 50% higher revenue which would be a heady change.
 

antonz

Member
They are only expecting 10 mil switch consoles to be shipped next fiscal year?

So by march 17 2018, a total of 12.74million consoles.

Hmm.. As much as I would like to care, does this make any implication regarding the existence of Pokémon Stars? (Numbers seem a bit low tbh, could be supply constraint?)

:p

Even if they internally expect more console sales it would be logical at this early stage to lowball. They can "increase" later if all goes to plan and look like they are blowing expectations out of the water
 
10 million switches for the next fiscal year huh?

Low balling so they can say they smashed expectations (they will).

Also, 2.74 million switches shipped in march. Damn.
 
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