Nintendo Sees $4.4 Billion in H1 Sales Amidst Hardware Decline

Nintendo's latest earnings report for the first half of the fiscal year, ending September 30, 2022, reveals an increase in sales and operating profit, albeit with a decline in hardware sales. Key figures include: Net sales of ¥656.9 billion ($4.4 billion), representing a 5.2% year-over-year increase, Operating profit of ¥220.3 billion ($1.5 billion), up 0.5%, and Ordinary profit of ¥322.4 billion ($2.1 billion), showing a 36.4% rise. Gross profit stands at ¥391.6 billion ($2.6 billion), a 5% increase. Hardware sales saw a decline, with 6.68 million units sold, a 19.2% drop year-over-year, while software sales rose 1.6% to 95.4 million units. Digital sales surged 30.2% to ¥187.8 billion ($1.2 billion), and mobile and IP-related income decreased 7.5% to ¥23.5 billion ($160 million). The Switch sold 6.68 million units in H1, with 2.2 million being base Switch consoles, 3.5 million Switch OLED units, and 0.9 million Switch Lite models, bringing the total lifetime Switch units sold to 114.3 million. Nintendo has revised its forecast for Switch sales from 21 million to 19 million units for the year, citing semiconductor and component shortages. New software releases such as Splatoon 3, Nintendo Switch Sports, and Mario Strikes: Battle League contributed to a slight year-on-year increase in software sales. The company predicts net sales of ¥1.65 trillion ($12 billion) for the full year, with ordinary profit expected to reach ¥560 billion ($2.8 billion), and anticipates a gradual improvement in component availability, leading to a recovery in hardware manufacturing. Upcoming software releases, including Bayonetta 3 and Pokémon Scarlet and Violet, are expected to positively impact sales. Nintendo has also announced a partnership with DeNA to establish Nintendo Systems, focusing on digital services research and development.