Nintendo Sees 50% Yearly Sales Surge, Driven by Tears of the Kingdom

Nintendo has unveiled its financial results for the quarter ending June 30, 2023, which includes the launch of The Legend of Zelda: Tears of the Kingdom. The company's quarterly performance was highly successful, although it has chosen not to revise its annual forecast upwards. Key financial indicators include net sales of ¥461 billion ($3.22 billion), representing a 50% year-on-year increase, operating profit of ¥185 billion ($1.29 billion), up 82.4% year-on-year, and net profit of ¥181 billion ($1.25 billion), which marks a 52.1% year-on-year increase. Nintendo Switch hardware sales reached 3.91 million units, a 13.9% increase, with lifetime sales now at 129.5 million units. Software sales for the Switch were 52.21 million units, up 26.1%, bringing lifetime sales to 1.09 billion units. The success of Zelda: Tears of the Kingdom, with 18.51 million units sold as of June 30, and the positive impact of the Super Mario Bros Movie on sales of Mario-related titles, including the additional 1.67 million copies of Mario Kart 8 Deluxe sold, contributed significantly to Nintendo's performance. The movie itself has been seen by over 168 million people worldwide, with box office revenues reaching $1.34 billion, making it the highest-grossing film based on a video game and the second-highest for an animated film. The company's mobile segment also saw a significant rise, with sales increasing by 190.1% year-on-year to ¥31.8 billion ($222 million), attributed to high audience engagement with the film and increased royalties. Looking ahead, Nintendo anticipates full-year sales of ¥1.45 trillion ($10.1 billion), a 9.5% decrease from the previous year, with a focus on maximizing the potential of the Nintendo Switch through the release of new titles and add-on content, including Pikmin 4, Super Mario Bros Wonder, and Pokémon Scarlet and Violet DLC.