Nintendo Announces Second Quarter Fiscal 2022 Financial Results – News

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Nintendo released its results for the third calendar quarter of 2022 (the second quarter of its 2022-23 fiscal year) overnight, including the first official sales details for Splatoon 3 and Xenoblade Chronicles 3.

All financial indicators are expressed in yen, with an approximate dollar value based on current market rates of US$1 = 146.238 yen provided for comparison.

Financial indicators

Operating income: 118.74 billion yen (approximately $812 million), down 0.9% year-on-year

Ordinary income: 155.741 billion yen (about $1.065 billion), up 17.5% year-on-year (due to weak yen)

Revenue: 349.514 billion yen (about $2.39 billion), up 7.7% year-on-year

Digital sales: 99.8 billion yen (~$682 million), up 20.4% year-on-year

Mobile revenue: 12.6 billion yen (~$86.1 million), down 3.9% year-on-year

Material shipments

  • Total: 3.25m
  • OLED: 2.01m
  • Standard: 910,000
  • Lite: 330,000

New LTD total is 114.33 million Switches – with combined shipments of 4.36 million in the current quarter, the Switch will overtake Game Boy (Color)’s 118.69 million to become the second largest platform best-selling in the history of the company behind the DS. Based on previous precedent, the pass will take place in the current quarter; the lowest holiday quarter ever for Switch sales was in launch year 2017 with 7.01 million systems.

OLED accounted for approximately 61.8% of Switch shipments in the quarter, backed by the Splatoon 3 Special Edition system being an OLED model. The special edition for Pokemon Scarlet and Violet also being an OLED system may slightly affect the percentage for the holiday quarter, although Nintendo’s holiday season bundle is a standard Switch.

New arrivals sales

Nintendo’s top three retail releases for the period were Live a Live (outside of Japan only), Xenoblade Chronicles 3, and Splatoon 3. Live a Live did not ship 1 million units internationally, but the Splatoon 3’s record opening weekend in Japan resulted in opening quarterly shipments of 7.9 million copies (5.08 million in Japan, 2.82 million internationally) while Xenoblade 3 opened to a quarter of 1.7 million. First-quarter sales of Splatoon 3 more than doubled those of Splatoon 2, while Xenoblade Chronicles 2 shipped just over a million copies in its first quarter.

Catalog sales

Nintendo Switch Sports shipped 1.31 million copies in the quarter for a new lifetime total of 6.15 million, while Kirby and the Forgotten Land added an additional 740,000 copies shipped to bring it to a lifetime total of 5.27 million copies and become the best-selling Kirby game of all time. Mario Kart 8 Deluxe shipped an additional 1.59 million copies in three months to jump to 48.41 million, while Animal Crossing New Horizons moved 790,000 copies to become the second game to sell more than 40 million Switch (40.17 million). Ring Fit Adventure also topped lifetime sales of Pokemon Let’s Go Pikachu/Eevee during the period. (The full Switch 10 bestsellers can be found here.)

Other news

  • Nintendo made some changes to its financial forecast for the year: revenue from 1.6 tons of yen to 1.65 tons, ordinary profit (including the exchange rate) from 480 billion yen to 560 billion yen, and major currency conversions were revised from 115 y to 1 USD and 125 y to Euro. at 135y for both currencies. Hardware shipments were actually revised down to 19 million systems (from 21 million) due to the semiconductor shortage easing only slightly.
  • Four of Nintendo’s European branches – Germany, France, Belgium/Netherlands/Luxembourg and Spain/Portugal – will be consolidated into one by the end of August 2024 in a bid to streamline operations in the region. The branch will be based in Germany, although no job loss is necessary.
  • Nintendo will form a joint venture with DeNA – with whom they initially partnered for the creation of the Nintendo Account and mobile games in 2016-17 – starting in April 2023, with the stated goal of “operations aimed at enhancing digitalization of Nintendo’s business, in addition to creating value-added services.” Nintendo will own 80% of “Nintendo Systems Co. Ltd.” with DeNA owning the remaining 20%.
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