Nintendo's Latest Financial Report Shows Stellar Growth
Nintendo has just released its latest financial report for the first quarter, which concluded on June 30th, 2024. This report is particularly noteworthy as it marks the first one since the launch of the Nintendo Switch 2. The new console has already achieved impressive sales figures, exceeding 6 million units sold worldwide in just seven weeks. The report reveals a very strong quarter for the company, driven largely by the new hardware and its accompanying software.
Key Financial Highlights
Nintendo's net revenue for the first quarter saw a remarkable increase of 132.1%, reaching 572.3 billion yen (approximately $3.8 billion USD). Net profit also saw a healthy boost, climbing 18.6% to 96 billion yen (around $638 million USD).
The majority of this revenue, 555.5 billion yen ($3.7 billion USD), came directly from sales of the Switch consoles, their accessories, games, and Nintendo Switch Online subscriptions. This segment alone saw a massive 142.5% increase compared to the same quarter last year. The remaining revenue was generated from royalties, mobile content, and other ventures, though this segment saw a slight decrease of 4.4% year-over-year.
Geographically, sales outside of Japan accounted for a significant 79.5% of total sales. North and South America remained Nintendo's largest market, contributing 40.5% of sales, followed by Europe at 23.5%, and Japan itself at 20.5%.
Switch 2's Impressive Debut
The Nintendo Switch 2, which launched on June 5th, has sold over 6 million units globally within its first seven weeks. This follows an initial boast from Nintendo that 3.5 million units were sold in just the first four days, setting a new record for home console launches. For comparison, the PlayStation 5 sold 3.4 million units in its first month and reached 4.5 million units seven weeks after launch, although it faced significant supply constraints early on.
Nintendo acknowledges that in some regions, demand for the new Switch units is significantly outstripping supply. The company is actively working to ramp up production and improve its supply chain to meet consumer demand.
Overall Console and Game Sales
In total, Nintendo sold 6.8 million consoles (combined Switch and Switch 2) during the first quarter. The original Nintendo Switch sold 0.98 million units, a 53.5% decrease from the previous year. Despite this, the original Switch's lifetime sales now stand at 153.1 million units, putting it just shy of the Nintendo DS's 154 million units, a testament to its enduring popularity.
The Switch 2 alone accounted for 5.82 million units sold by the end of June. Looking back at Nintendo's past console launches, the Switch 2's initial quarter performance outpaces many of its predecessors:
- Nintendo DS: 2.48 million units
- Wii: 3.19 million units
- Nintendo 3DS: 3.61 million units
- Wii U: 3.06 million units
- Original Switch: 2.74 million units
While the original Switch saw 24.4 million games sold in the quarter (a 20.4% decline), the Switch 2 had 8.67 million game sales. Notably, 5.63 million of these were for Mario Kart World, indicating that almost every new Switch 2 owner picked up a copy, likely boosted by console bundles. Mario Kart World also marked the second-best launch in the franchise's history, after Mario Kart Wii.
Digital game sales represented 59.3% of all software sales, a slight increase of 0.4% year-over-year, but a 3.6 percentage point decrease from the previous quarter.
Future Outlook and Upcoming Titles
Despite the incredibly strong start, Nintendo has not adjusted its fiscal year forecast. The company stated that changing economic conditions, such as American tariffs, have not significantly impacted their current projections. Nintendo still aims to sell 15 million Switch 2 units and 45 million games for the console by the end of March 2026.
Serkan Toto, founder of consulting firm Kantan Games, suggests that Nintendo is likely underestimating its potential, a common tactic for the company. He believes they will easily meet their targets, noting that the impressive results demonstrate how eager Nintendo fans were for new hardware after an eight-year wait. He observed, "They have already completed 40% of the plan, and the holiday quarter usually accounts for 40-50% of annual sales."
Fans can also look forward to new game releases, with Metroid Prime 4: Beyond still slated for 2025. In 2026, Nintendo plans to release Rhythm Heaven Groove, Tomodachi Life: Living the Dream, and Pokémon Champions.
Top-Selling Nintendo Switch Games (Life-to-Date)
The report also provided updated lifetime sales for the original Nintendo Switch's best-selling titles:
- Mario Kart 8 Deluxe – 68.86 million copies (+660,000 this quarter)
- Animal Crossing: New Horizons – 48.19 million copies (+370,000 this quarter)
- Super Smash Bros. Ultimate – 36.55 million copies (+310,000 this quarter)
- The Legend of Zelda: Breath of the Wild – 33.04 million copies (+230,000 this quarter)
- Super Mario Odyssey – 29.5 million copies (+220,000 this quarter)
- Pokémon Scarlet & Violet – 27.15 million copies (+360,000 this quarter)
- Pokémon Sword & Shield – 26.84 million copies (+120,000 this quarter)
- The Legend of Zelda: Tears of the Kingdom – 21.93 million copies (+200,000 this quarter)
- Super Mario Party – 21.19 million copies (+30,000 this quarter)
- New Super Mario Bros. U Deluxe – 18.36 million copies (+110,000 this quarter)
What This Means for Players
The strong performance of the Nintendo Switch 2 signals a healthy future for Nintendo's hardware and software ecosystem. While demand currently outstrips supply in some areas, Nintendo's commitment to increasing production means more units should become available over time. The company's conservative forecasts suggest it is well-positioned to exceed expectations, potentially leading to a robust lineup of games and continued support for its new console for years to come. Players can anticipate a steady stream of new experiences and a strong market for the Switch 2.
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