Nintendo Co., Ltd. announced a 46.5% decline in net sales for the first quarter of the fiscal year ending June 30, 2024, amounting to ¥246.6 billion (approximately $1.72 billion). This significant drop is primarily attributed to decreased sales in both hardware and software segments compared to the previous year when blockbuster releases and a movie collaboration boosted results.
Operating profit fell sharply by 70.6% to ¥54.5 billion ($380 million), reflecting reduced revenues and increased selling, general, and administrative expenses, which rose to ¥97.9 billion ($680 million). Ordinary profit also saw a decline of 55.3% to ¥113.4 billion ($790 million), exacerbated by reduced foreign exchange gains.
The digital business suffered a 32.6% drop in sales, reaching ¥80.7 billion ($560 million), as demand for downloadable software diminished. Meanwhile, revenue from mobile and IP-related business plummeted by 53.8% to ¥14.7 billion ($103 million), impacted by the absence of a major film release like the previous year’s The Super Mario Bros. Movie.
Despite the downturn, Nintendo maintained its financial forecast for the fiscal year, projecting net sales of ¥1.35 trillion ($9.4 billion) and a net profit of ¥300 billion ($2.1 billion). The company plans to bolster its software lineup with upcoming releases, including The Legend of Zelda: Echoes of Wisdom and Super Mario Party Jamboree, to rejuvenate demand and stabilize its financial performance.
