It’s never ideal to adjust projections downward after the holiday quarter, but was it really surprising this time?
Nintendo reported its financial outcomes for the fourth quarter of 2024 in Japan today. Normally, these results might be considered impressive, but the reality of the Switch reaching its eighth holiday season seems to have dampened its shine a little.
In this report, all financial figures are presented in yen (¥), with U.S. dollar equivalents calculated at an exchange rate of ¥155.32 to $1.
Financial Overview
- Revenue: ¥423.919 billion (~$2.787 billion), marking a 27.67% drop compared to the previous year
- Operating Income: ¥126.084 billion (~$812 million), reflecting a decrease of 31.60%
- Ordinary Income: ¥180.017 billion (~$1.159 billion), surprisingly up 42.6%
- Digital Sales: ¥85.9 billion (~$553 million), down 33.36%, with digital purchases accounting for 51% of software sales this fiscal year
- Mobile and IP Revenue: ¥18.5 billion (~$119.1 million), a decline of 8.42%
Switch Hardware Performance
During the quarter, 4.82 million Switch units were shipped. This total includes 2.62 million OLED models, 1.52 million standard versions, and 780,000 Lites. The Switch has surpassed the 150 million unit milestone, on track to eventually surpass the DS, as only 3.16 million more shipments are needed. To overtake the PlayStation 2, another 9.24 million shipments are necessary, following Sony’s updated results late in 2024.
New Releases
Leading the pack, Super Mario Party Jamboree dominated sales with 6.17 million units shipped, outpacing the likes of 2018’s Super Mario Party and 2021’s Mario Party Superstars. Another major release, Mario & Luigi: Brothership, managed to ship over 1.84 million copies. Meanwhile, The Legend of Zelda: Echoes of Wisdom, released on September 26, saw shipments of 3.91 million copies.
Catalog Titles
Mario Kart 8 Deluxe continues its reign, boosting its lead in Switch software with 3.06 million units shipped over the quarter. Its lifetime sales now stand at 67.35 million copies. While the top 10 ranking hasn’t shifted much, there’s anticipation that Pokémon Scarlet/Violet may soon swap places with Sword/Shield.
Additional Updates
Nintendo has been forced to lower its forecasts for the second time this fiscal year. The company now expects to ship 11 million systems, down from an earlier forecast of 12.5 million, and 150 million units of software, previously estimated at 160 million. Expectations for revenue have also been trimmed by 7%, operating profit by 22.2%, ordinary profit by 11.9%, and net profit by 10%.
