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Thursday, November 10, 2022

September 30, 2022 Nintendo Quarterly Financial Update

By LUDWIG VON KOOPA - Semiconductors! Depreciation! Europe!

Our parasocial friends over at Nintendo have released two big things in the past couple of days: their 2nd Quarter of Fiscal Year Ending March 2023 (AKA FY23) Financial Results Explanatory Material, and their Corporate Management Policy Briefing for Fiscal Year Ending March 2023 annotated by Nintendo President Shuntaro Furukawa.

Investors don't seem to care that the Switch has now sold 114.33 million units and Switch software has sold 917.59 million units. They are more looking at the revised consolidated earnings forecast of how Nintendo expects to have sold 19 million Switch consoles (down from an expectation of 21 million) between April 1, 2022 and March 31, 2023. Nintendo, while expecting to sell less Switch consoles, still expects to sell 210 million units of software, and they INCREASED their net profit projection from 340 billion yen to 400 billion yen. (So far, they sold 54 million software in the second quarter, and 3.25 million hardware in the second quarter—for a total of 95.41 million software and 6.68 million hardware in the first half of the year.)

They have stressed that the reduction in Switch expectations is due to semiconductors causing supply shortages, not because of noticeable decrease in customer demand. Nintendo also claimed that semiconductor availability is gradually improving. Another common theme was because of the depreciation of the Japanese yen, Nintendo got to claim foreign currency exchange gains, including the value of the hardware they did manage to sell. However, the depreciation of the yen also made activities by Nintendo's overseas subsidiaries more expensive, such as advertising. I'll get to overseas subsidiaries in just a moment! But first, everyone's favourite unreadable chart:

Nintendo Switch software million sellers chart September 30 2022 Ring Fit Adventure
There are a bunch of dots at December 31, 2021, because we had some missing data filled in by CESA 2022.
(That's the Computer Entertainment Supplier's Association, and they publish a book with, among other things, sales data of Japanese game companies.)

Ring Fit Adventure managed to sell enough to go up from 10th place to 9th place. Previously, Pokémon: Let's Go, Pikachu!/Pokémon: Let's Go, Eevee! were in 9th place at 14.66 million units, while Ring Fit Adventure was at 14.54 million. Now, those Pokémon titles are in 10th at 14.81 million while Ring Fit Adventure climbed to 14.87 million, and they're in striking distance of Pokémon Brilliant Diamond and Pokémon Shining Pearl, collectively at 8th place at 14.92 million units. (If you're wondering, Pokémon Legends: Arceus is at 13.91 million units.) Ring Fit Adventure continues to sell faster than these Pokémon titles and several other games, and the more I praise it, the more I feel like I really ought to go back to playing it.

But most impressively is that Splatoon 3 has a life-to-date of 7.9 million units already. Just since it released September 9, 2022. That's BONKERS. It's passed half of Splatoon 2's life-time total. Meanwhile, Xenoblade Chronicles 3 has a weak-looking life-to-date of 1.72 million units, though that also makes it the strongest showing in the shortest amount of time of the whole Xenoblade franchise.

Age Distribution of Annual Nintendo Switch Playing Users 2022
Splatoon 2 is for teenagers, but Splatoon 3 is making in-roads in the 60+ age group.
...That's what this age distribution figure from the corporate management briefing suggests.

Nintendo is doing a LOT with DeNA and their Nintendo Account, but I'm actually reserving my thoughts on that for another article (coming soon!). Instead, I'm going to end this by mentioning that Nintendo is consolidating their France, Netherlands (or “Benelux”, short for Belgium, Netherlands, and Luxembourg), and Iberia (Spain/Portugal) subsidiaries into one subsidiary, Nintendo of Europe, which has already existed in Germany. All of this merging while happen by two years from now (supposedly by August 2024). Nintendo says they'll do this to “improve business efficiency and accelerate decision-making”, though all of these European subsidiaries already report to the same director, Stephan Bole. Technically, Nintendo France and Nintendo Benelux (as well as the German Nintendo of Europe) all reported to Nintendo in Japan, with Nintendo Iberia reporting to Nintendo of Europe. Now they'll all just be in Nintendo of Europe which'll report to Nintendo of Japan.

Does this mean anything for you, the gamer? Likely not. Does it mean anything for Nintendo investors? According to Nintendo, “this reorganization will have little effect on results.”

Just so this article doesn't end on a trivial note, Nintendo has disclosed that Nintendo Switch Online has over 36 million members. That includes every individual in a Family Group, and it also combines Nintendo Switch Online + Expansion Pack with Nintendo Switch Online. Nintendo didn't say how many people are on the Expansion Pack specifically, but as of tonight, KoopaTV's Family Group has officially been upgraded to the Expansion Pack. I'll let y'all know how that's going for us later. ALSO, over 77 million amiibo figures have been shipped. Yup. Remember amiibo? Nintendo said they release new amiibo figures every year, which is true. Barely. It's being primarily carried by Super Smash Bros. Ultimate and Monster Hunter. Just don't look at the American website's amiibo Character List Lineup page—it's not kept updated. Nintendo UK's is, however.

Surely Nintendo took questions on their briefing? After the English translation of that becomes available, KoopaTV will publish question-by-question commentary on that as well.

Last quarter's June 30, 2022 results are here.
Last year's September 30, 2021 results are here, which also included a Corporate Management Policy Briefing.
Here was the more information about DeNA and the Nintendo Account.
And here is that question-by-question commentary!
The next quarter's results are here, and that increased financial forecast got reversed.


  1. SEE! This article proves that Kirby is not just for kids. Or maybe it is but more older people are playing it. Regardless, more people should play Kirby games.

    I haven't bought an Amibo in 5 years, i only have three of them. I like them as Statues but the in game benefits never appeal to me. I think I would like them better, and they'd probably be cheaper, if they were just official Nintendo statues.

    I thought the big magenta line was clubhouse games and that gave me a big laugh knowing it wasn't. Poor Clubhouse games.

    1. I could see them being more expensive if they were just official Nintendo statues, because Nintendo-licensed Nendoroids are substantially more costly than an amiibo.

    2. I thought they would be cheaper because they don't require the technical parts of an amibo, but i suppose any licensed merchandise is going to be expensive.

    3. Quite a scrumptious profit margin...


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