Nintendo Released Earnings for April-June Quarter: Profits Decline
Nintendo, a Japanese multinational video game company, has released its quarterly earnings for April-June. While considering the slow period where revenue and profit are both down compared to last year, the figures would normally be strong.
However, it’s not surprising given that the company was then riding a surge in demand during the first wave of the COVID-19 pandemic for video games. Besides, they had just released the mega-hit Animal Crossing: New Horizons.
Switch hardware sales, by comparison, were down by 21.7% to 4.45 million units. On the other hand, its software sales have decreased by 10.2% to 45.29 million units.
To date, the company has sold 89.04 million Switch consoles; for comparison, the PS5 just hit 10 million. While operating profit was 119.6 billion yen ($1.09 billion), revenue decreased 9.9% to 322.6 billion yen ($2.94 billion) which is a 17.3% decline year-on-year.
Unlike last year, when Nintendo sold more than 10 million copies of Animal Crossing, this year there weren’t any blockbuster Switch titles to bank on.
New Pokémon Snap sold 2.07 million copies outside Japan which is published by The Pokémon Company and Mario Golf: Super Rush sold 1.34 million. Meanwhile, Animal Crossing added an extra 1.26 million copies and have now sold nearly 34 million copies worldwide.
In this current quarter, Nintendo’s biggest release was The Legend of Zelda: Skyward Sword HD.
Besides, next quarter, with the launch of the new OLED model, the company can expect an increase in sales of the Switch hardware.
Nintendo’s slate for that all-important holiday includes Mario Party Superstars, Metroid Dread, WarioWare: Get It Together, and remakes of Pokémon Diamond and Pearl.