Nintendo 1st Quarter Results FY3/2018: Arms 1.18M, Mario Kart 3.54M, Zelda 3.92M

#1
Update: Year-on-year comparison of the same period.



Link: https://www.nintendo.co.jp/ir/pdf/2017/170726e.pdf


1. Consolidated Operating Results
During the first quarter of this period (April through June 2017), for Nintendo Switch, we released Mario Kart 8 Deluxe in April to
favorable response, selling 3.54 million units worldwide. ARMS, released in June, is also off to a good start with 1.18 million units sold
globally. In addition, The Legend of Zelda: Breath of the Wild, released in the previous period, has also continued to perform well,
selling 1.16 million units worldwide (3.92 million units on a cumulative basis). Altogether the sales volume for Nintendo Switch
hardware and software during this period came to 1.97 million units and 8.14 million units respectively.
For Nintendo 3DS, Fire Emblem Echoes: Shadows of Valentia was released in Japan in April and overseas in May and has been a
popular title. Hardware sales were 0.95 million units (1% increase on a year-on-year basis) and software sales were 5.85 million units
(31% decrease on a year-on-year basis).
As there were few new types of amiibo compared to the same period last year and few new titles offering amiibo functionality,
amiibo sales were approximately 1.60 million units for figure-type and approximately 1.30 million units for card-type. In our digital
business, sales of the digital versions of packaged software and downloadable content on Nintendo Switch showed steady growth, with
total digital sales of 11.0 billion yen (41% increase on a year-on-year basis).
For smart devices, many consumers are continuing to enjoy Super Mario Run and Fire Emblem Heroes, which were released during
the previous fiscal year. Our smart device and IP related income was 9.0 billion yen (450% increase on a year-on-year basis).
With this background, we had an operating profit of 16.2 billion yen and an ordinary profit of 30.9 billion yen against net sales of
154.0 billion yen (of which overseas sales were 113.8 billion yen or 73.9% of the total sales). The profit attributable to owners of parent
for this quarter was 21.2 billion yen.
Net Sales: ¥154,069 million ($1.38 billion), 148.6% increase YoY

Operating Income: ¥16,208 million ($145 million)

Profit: ¥21,260 million ($190 million)

Nintendo Switch
Hardware: 1.97 million for the quarter/ 4.7 million LTD
Software: 8.14 million for the quarter/ 13.6 million LTD


3DS
Hardware: 950k for the quarter/ 67.08 million LTD
Software: 5.85 million for the quarter/ 355.1 million LTD


Smart Device, IP related income: ¥9,062 million

Nintendo's earnings share from Pokémon Go:
(Share of profit of entities accounted for using equity method:) ¥3,286 million


Hardware sales units

Top selling software units

There have been no revisions to 3DS or Switch forecasts.
 
#7
Ah, missed this thread.

Nintendo FY17/Q1 results (numbers for previous year in brackets)

Sales: JPY 154,069m (JPY 61,969m)
Profit: JPY 21,795m (JPY -24,530m)

Download sales: JPY11,000m (JPY7,800m)


Sales per platform/segment:



amiibo & smart devices:
- fewer amiibo released than in the year before
- sales: 1.60m for figure-type and 1.30m for card-type
- smart device and IP related income was 9.0 billion yen (450% increase on a year-on-year basis).


Software shipments:
Mario Kart 8 Deluxe - 3.54m
ARMS - 1.18m
The Legend of Zelda: Breath of the Wild - 1.16m (3.92m LTD)
Switch software sales this quarter - 8.14m (three titles above represent 72.2% of all sales)


Hardware shipments:
- Switch: 1.97m (4.7m LTD)
- 3DS: 0.95m (67.08m LTD)


Source: Nintendo IR
 
#8
Compare my second post in this thread to this post: http://m.neogaf.com/showthread.php?t=1364797

Smart Device, IP related income: ¥24.25 billion or $218 million for the 12 months ended FY3/2017

Compared to the previous year it was ¥5,734 million or $51.5 million, that's roughly a 4.2x increase year over year.

Nintendo's earnings share from Pokémon Go and other entities:
Share of profit of entities accounted for using equity method: ¥20,271 million or $182.2 million for the 12 months ended FY3/2017

Source​: https://www.nintendo.co.jp/ir/pdf/2017/170427e.pdf
Fire Emblem Heroes is going to make Nintendo a lot more money than what it and Super Mario Run did for it last year.
 
#9
Nintendo 3DS Hardware LTD is 67.08 million.

20,000 New 2DS XL units were shipped to Other, most likely Australia and New Zealand.

Nintendo 3DS software LTD at 335.1 million units.
 
#14
Forgot to mention.

Switch is currently tracking ahead of 3DS in hardware sales.

Switch is at 4.7 million LTD.
3DS was at 4.32 million LTD at the same amount of time from launch.

Switch can probably still track ahead for the 2nd quarter but it will be difficult to beat 3DS for the 3rd quarter where it shipped 8.5 million units just for that quarter alone which lead to an LTD of 15 million.
 
#15
Seems very okay for 3DS sales!

With 2DS XL, ongoing support and DQ11 in Japan, the 3DS might just make it to 70m this year.

2m Switches is a little less than I would have hoped for, but nevertheless it's nice to see that the system has staying power. I'm looking forward to the point where supply constraints won't be a problem anymore.
 
#17
Using the Switch Software LTD sales - Top Selling First party games

13.6M - 9.86M = 3.74M

So 3.74M of software sales on Switch consist of 3rd party sales and first party titles which haven't sold a million, Snipperclips comes to mind.

That means 27.5% of Switch software sales are from third parties or first party titles that didn't sell a million.

Edit: Apparently it's only retail numbers, ignore the above.
 
#18
3DS still chugging along at a comfortable pace for its 7th year on market. Really smart of Nintendo to position it as their budget or 'feature' device, to use smartphone terms, especially when they're having such trouble keeping up with Switch demand.

And goddamn, three months of FE Heroes profits probably just funded their next 5 mainline series games on dedicated hardware.
 
#19
Using the Switch Software LTD sales - Top Selling First party games

13.6M - 9.86M = 3.74M

So 3.74M of software sales on Switch consist of 3rd party sales and first party titles which haven't sold a million, Snipperclips comes to mind.

That means 27.5% of Switch software sales are from third parties or first party titles that didn't sell a million.
Snipperclips didn't have a retail release, so it shouldn't be included in those numbers.
 
#21
They don't use eShop sales numbers for anything?
Sounds like they don't count eShop-only titles in that table:
1 Software sales units include both packaged and downloadable versions of software.
2 Each title available in both packaged and downloadable versions is counted as one new title.

That's why it says there were only 6 new titles released on Switch this quarter.
 
#25
So it seems no change in Switch hardware forecasts. That's a bit disappointing. Good results though, I think 4.7m as of June 30th was a bit higher than most were expecting going by NPD and MC numbers.
 
#26
Forgot to mention.

Switch is currently tracking ahead of 3DS in hardware sales.

Switch is at 4.7 million LTD.
3DS was at 4.32 million LTD at the same amount of time from launch.

Switch can probably still track ahead for the 2nd quarter but it will be difficult to beat 3DS for the 3rd quarter where it shipped 8.5 million units just for that quarter alone which lead to an LTD of 15 million.
I feel it's worth noting with this that Switch has been behind the 3DS in Japan in terms of pace - as the MCS threads have shown - so this would mean it's gotta be ahead in the rest of the world (presumably the US in particular) to balance that out.
 
#28
So it seems no change in Switch hardware forecasts. That's a bit disappointing. Good results though, I think 4.7m as of June 30th was a bit higher than most were expecting going by NPD and MC numbers.
I guess Nintendo will have to work hard with supply to reach this forecast because doesn't look like the things get better in July.

1.9m for these three months is about what I predicted in April... 600-700k per month.

~250k JP
~250k US
~100k EU
~50k Others

That is what Nintendo is shipping per month.
 
#30
I guess Nintendo will have to work hard with supply to reach this forecast because doesn't look like the things get better in July.
They did say production/shipments will increase in late July and this Fall, but it seems that was part of the original production schedule as of April. At this point them not changing their forecast basically tells us 10m is all they think they can make between April '17 and March '18. Good numbers in a vacuum but it's a missed opportunity for sure.
 
#31
Who would have thought MS gaming generate more revenue in a rather quite quarter for Xbox than Nintendo with Switch launch and crazy mobile money.
 
#32
They did say production/shipments will increase in late July and this Fall, but it seems that was part of the original production schedule as of April. At this point them not changing their forecast basically tells us 10m is all they think they can make between April '17 and March '18. Good numbers in a vacuum but it's a missed opportunity for sure.
They need to increase production to supply holidays if they want to reach these 10m... at least double the production for Oct to Dec.

Can we expect?

Q1 ~2m
Q2 ~2.5m
Q3 ~4m
Q4 ~1.5m

That is how I believe the 10m will be split.... a bit lower or high in some quarters but close to these numbers.

Who would have thought MS gaming generate more revenue in a rather quite quarter for Xbox than Nintendo with Switch launch and crazy mobile money.
There is no way tho compare the software and service revenue from a near 30m userbase with a near 5m userbase.

Expect to Nintendo to have better revenue than MS in Switch first months is just crazy talk right now.
 
#33
There is no way tho compare the software and service revenue from a near 30m userbase with a near 5m userbase.

Expect to Nintendo to have better revenue than MS in Switch first months is just crazy talk right now.
Net sales doesn't include hardware revenue? My bad then.
 
#35
Net sales doesn't include hardware revenue? My bad then.
It includes but the disparity in software and services are too huge and it is where most of revenue come.

Even if we account mobile you need to remember MS has Minecraft on mobile that is bigger than any Nintendo game for mobiles.
 
#37
Sounds like they don't count eShop-only titles in that table:
1 Software sales units include both packaged and downloadable versions of software.
2 Each title available in both packaged and downloadable versions is counted as one new title.

That's why it says there were only 6 new titles released on Switch this quarter.
Wait what? 3,74 mio. games were sold between Bomberman, Puyo Puyo Tetris, Just Dance 2017 , Skylanders Imaginators, Has-been Heroes, LEGO City Undercover, Disgaea 5 and UFS II?

That sounds insane if true

Edit: It says 15/17/15 titles in total for the 3 regions, which am i forgetting?
 
#38
Wait what? 3,74 mio. games were sold between Bomberman, Puyo Puyo Tetris, Just Dance 2017 , Skylanders Imaginators, Has-been Heroes, LEGO City Undercover, Disgaea 5 and UFS II?

That sounds insane if true

Edit: It says 15/17/15 titles in total for the 3 regions, which am i forgetting?
Bomberman alone had shipped over half a million as of April. We also know that Disgaea 5 did relatively impressive preorder numbers.
 
#39
They really need to get that operating profit number up. People are going to have no choice but to accept mobile as the new third pillar with the way its boosting Nintendo's bottom line.
 
#40
They really need to get that operating profit number up. People are going to have no choice but to accept mobile as the new third pillar with the way its boosting Nintendo's bottom line.
1) What were you expecting for Operating profit? And why?

2) Nintendo has accepted mobile games as a revenue stream since last year and even reiterated it in their Annual Report they released recently:

In accordance with our basic strategy, we will drive continual growth for Nintendo by expanding the dedicated video game business and establishing the smart device business. For our dedicated video game business, our unique hardware-software integrated business with focus on software will continue to constitute the core business for Nintendo and we will actively seek to invest resources in our Nintendo specific platform business.
In order to expand the scope of our business, we will seek to strengthen our business foundation, generate synergy with our dedicated video game business and maximize business for Nintendo as a whole by building our smart device business into one of our major pillars of profit.
 
#42
Great numbers.
Pokemon XY and ORAS sales have slowed to a crawl, as expected. Sun and Moon is still selling, but it's definitely slowed down, probably due to Ultra Sun and Moon's announcement, or the series is just becoming more front loaded. Anyways, Sun and Moon passed Black and White's sales.
 
#43
1.9m for these three months is about what I predicted in April... 600-700k per month.

~250k JP
~250k US
~100k EU
~50k Others

That is what Nintendo is shipping per month.
They list what they shipped over 3 months which works out as
177k JP
250k Americas
230k Rest of world

The US stock is sounding a bit more plentiful recently, and Japan too, so I think we could already be seeing a rise but it's hard to say for sure.
 
#46
They list what they shipped over 3 months which works out as
177k JP
250k Americas
230k Rest of world

The US stock is sounding a bit more plentiful recently, and Japan too, so I think we could already be seeing a rise but it's hard to say for sure.
I don't know if they really increased production already (they indeed need for holiday sales) because in Japan looks like they hold supply in July to ship 100k at Splatoon launch... right now the shipment for July looks around 150k with one week left.
 
#48
Great numbers.
Pokemon XY and ORAS sales have slowed to a crawl, as expected. Sun and Moon is still selling, but it's definitely slowed down, probably due to Ultra Sun and Moon's announcement, or the series is just becoming more front loaded. Anyways, Sun and Moon passed Black and White's sales.
I still think Sun and Moon will pass XY.
Probably be the first generation to pass the debut generation on a new handheld(Black and White couldn't do it, Gold and Silvwr couldn't do it)
 
#50
They've oversaturated the series.

A new Advance Wars instead will cure this.
That not the case I think. Fire Emblem Echoes is for all intents and purposes still a remake, not a mainline title. Expecting it to sell on par or above Awakening and Fates seems unrealistic to me.