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Nintendo profits are soaring thanks to Mario and Switch
Nintendo says a positive revision to its financial guidance for the fiscal year ending in March, attributing the boost to robust sales of its popular Switch console and software.
The company now projects a net profit of Y440.00 billion ($2.96 billion) for the fiscal year, representing a 1.7% increase from its previous forecast, which initially predicted a 3.0% decrease in net profit.
Additionally, Nintendo anticipates revenue to reach Y1.630 trillion, reflecting a 1.8% rise compared to its prior forecast, which had anticipated a 1.4% decrease in revenue.
Nintendo’s optimistic outlook is primarily driven by the strong performance of its flagship product, the Nintendo Switch.
The company now forecasts sales of 15.5 million Switch consoles for the fiscal year, up from its initial projection of 15.0 million units.
Switch software
Nintendo expects to sell 190.0 million copies of Switch software, surpassing its earlier estimate of 185.0 million copies.
In the nine-month period ending on December 31, 2023, Nintendo witnessed substantial growth in its financial performance, with net profit surging by 18% year-on-year to Y408.04 billion.
This surge in profitability was accompanied by a 7.7% increase in revenue, which reached Y1.395 trillion.
The financial growth was primarily driven by the outstanding sales of hit titles like “Super Mario Bros. Wonder” and “The Legend of Zelda: Tears of the Kingdom.”
IP income
Nintendo experienced a remarkable 93% year-on-year increase in revenue from mobile and intellectual property-related income during the nine-month period, with earnings amounting to Y75.2 billion.
The company attributes this impressive growth partly to the success of “The Super Mario Bros. Movie,” which had a significant positive impact across Nintendo’s entire business, leading to increased sales of both software and hardware units.
The recent surge in Nintendo’s stock prices is a testament to the market’s optimism regarding the company’s ongoing financial success. Investors appear confident that Nintendo will continue to ride the wave of strong earnings momentum.
