IIRC they've said they don't report unit sales for digital games because the prices vary so wildly that it's not a useful metric for how their business is doing.
Nintendo FY3/2022 Q2 Earnings Release, Switch Hardware Q2 - 3.83M (-44.1% YoY), 92.87M LTD
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- Financial Results
Furukawa (Nintendo's President) said that demand likely won't be met this holiday due to supply issues. Also says that despite OLED launching, sales for OG and Lite are still strong as the market recognizes that the models are different and answer different needs. Doesn't sound like any of the three models are getting replaced or shelves anytime soon!
www.bloomberg.com
Nintendo Trims Switch Sales Outlook Due to Chip Shortages
Nintendo Co. cut its Switch sales target in the latest response to widespread component shortages and logistics bottlenecks, which it said show no signs of easing.
www.bloomberg.com
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It's a shame as Nintendo likely leads in digital only sales by a significant margin.
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I guess that makes sense, but we're also quickly moving towards a time where they will likely need to change this stance to some extent.
I think most were expecting lower than usual hardware due to the 1) buildup to the release of the OLED and 2) chip shortages. I guess Nintendo made up for it with better than expected software sales. Despite this, I can only imagine there will be many doom proclaiming click-bait news articles about the lower than anticipated hardware sales while ignoring or dowlplaying software sales.
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50% of all sales are digital now?
That's surprising, and good on Nintendo. Hopefully they keep on investing in having a robust digital infrastructure!
That's surprising, and good on Nintendo. Hopefully they keep on investing in having a robust digital infrastructure!
If you're looking at the "proportion of DL versions of software sales" that's not saying digital split for retail titles, that's indicating that 50% of digital sales are of retail games. The other 50% are download only games and MTX I'm guessing.
I think this is done purposely in case they don't meet their hardware projections for whatever reason. Nintendo can say they exceeded their software projections to sort of counter the negative narrative around the hardware results.
Those ratios are revenue and includes software , dlc + nso
here is the split (ratios and figures below are revenue) in (bl yen)
Revenue of full game software digital is 27% for this Q
| Physical Revenue Full Package Software (billion) *A* | Digital Revenue Full Package Software (billion) *B* | Digital NSO/DLC/digital dl *C* | Total Digital (B+C) | Physical *A* : Digital (B+C) Ratio (includes full package, digital dl, dlc and nso) | Physical *A* : Digital *B* Full Pack Software Only | |
| FY Q1 2020 | 82.6 | 68.3 | 32.6 | 100.9 | 55.6 | 45.28% |
| FY Q2 2020 | 110.0 | 40.7 | 29.6 | 70.3 | 38.9 | 27.02% |
| FY Q3 2020 | 179.1 | 41 | 43.3 | 84.3 | 32.1 | 18.62% |
| FY Q4 2020 | 88.0 | 53.6 | 34.4 | 88 | 49.6 | 37.85% |
| FY Q1 2021 | 85.5 | 39.5 | 36.3 | 75.8 | 46.9 | 31.61% |
| FY Q2 2021 | 90.4 | 33.5 | 34.7 | 68.2 | 43.2 | 27.04% |
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Thank you very much!
So 27% of Nintendo's revenues are digital sales? That's not as high as I expected (so correction in the opposite direction haha)
For Games which are full game software (physical + digital) those are 27% vs physical revenue
if we add dlc + nso+ digital only game , it represents 43% of the revenue
These are also by revenue and not by units.
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New Pokemon Snap only shipped & sold digitally 120K units this quarter, a -94% decline from its launch last quarter.
2 million units shipped & digital is still a success for Nintendo, but not evergreen worthy. I think it's having issues demonstrating its value proposition beyond nostalgia seekers, which leads to frontloaded sales & sell-through weakness for its initial shipment.
Personally, I think New Pokemon Snap struggles with the fact that it's a short, on-rails, casual experience that still retails at $60. It takes an average of 10 hours to beat it, and you can get to the credits in 6. If it were a cheaper game or a cinematic, action-packed experience I believe it would have more market potential than what it currently offers.
Basically, it captured the userbase who had fond memories of the N64 original and then dropped like a rock.
2 million units shipped & digital is still a success for Nintendo, but not evergreen worthy. I think it's having issues demonstrating its value proposition beyond nostalgia seekers, which leads to frontloaded sales & sell-through weakness for its initial shipment.
Personally, I think New Pokemon Snap struggles with the fact that it's a short, on-rails, casual experience that still retails at $60. It takes an average of 10 hours to beat it, and you can get to the credits in 6. If it were a cheaper game or a cinematic, action-packed experience I believe it would have more market potential than what it currently offers.
Basically, it captured the userbase who had fond memories of the N64 original and then dropped like a rock.
Even with shortages Switch will sort out Wii and PlayStation LTDs by the end of Q3 and be within striking distance of PS4 and Game Boy by the end of the FY. By the end of FY23 I think Nintendo (and leakers) would give us a clear indication on how long they keep this success story going.
Software is pretty good. Hardware is a disappointment from expectations, but I guess we've gotten a little too used to record-breaking numbers. It wasn't gonna do that forever. The Holiday season should be good.
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This perception is accurate but I will say that it achieved exactly what it was set out to do.
Maybe this has already been addressed in the posts following, but Nintendo's methodology in the last couple years on forecast is the following.
Q4 Results: Set Forecast (25.5M)
Q1 Results: No Change
Q2 Results: Change based on H1 performance. So in this case, H1 underperformed by ~1.5M.
Q3 Results: Change based on Q3 performance.
So what we now know. Forecast was originally 9.5 - 10.0M H1 / 16.0M H2. You can apply the same logic to last FY; link - pre-Q3 results << following that when Q3 results did come out, they increased the presented forecast further by Q3's outperformance.
I agree with Stu. Their 16M Q3/Q4 forecast this year is a long shot given supply issues. They already missed H1 by 17%. I think they were expecting 5.0M / 5.0M / 10.5M / 5.0M quarterly, and haven't been able to meet target yet at all. I know demand in JP pre-OLED was down but I think this is mostly a production issue caused by the supply-chain.
Interactive graphs by Oscar
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I'm so busy today I translated this quickly so it's not perfect but here it is.
Actually they specifically said they changed the forecast based on what they expect to have for supply in H2, according to the explanatory materials slide.
That's suprising. I wouldn't expect Switch Lite but I figured since limited production they'd slow/stop OG Switch in turn for full focus on OLED a la Sony with PS4 to PS5 respectively.Furukawa (Nintendo's President) said that demand likely won't be met this holiday due to supply issues. Also says that despite OLED launching, sales for OG and Lite are still strong as the market recognizes that the models are different and answer different needs. Doesn't sound like any of the three models are getting replaced or shelves anytime soon!
Nintendo Trims Switch Sales Outlook Due to Chip Shortages
Nintendo Co. cut its Switch sales target in the latest response to widespread component shortages and logistics bottlenecks, which it said show no signs of easing.
This is beyond amazing. Thank you so much for this.
It’s crazy.
People were worried about Nintendo consolidation and setting standards that it would have to do better than 3ds+Wii U to be considered a “success”
Now we are looking at the Switch besting the DS+Wii era in both revenue and profit. I think it will sell more software than both combined too when all is said and done. Hardware sales comparisons are irrelevant at this point.
Skyward Sword has the two biggest launch quarters for the Zelda franchise lol
Beautiful.
Looking at the pie chart I'd suspect Nintendo would want to grow a service slice to take the pressure off hardware and first party software.
I may be wrong, but wouldn’t Nintendo at this point knows what the current supply chain looks like and has some confidence that they can produce at least 16 million consoles to ship by then?
This is awesome btw
This number all still shows that Nintendo earnings through it's IP from merchandising need more work there. It still pale compared to their gaming business.
vindication
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This is seriously impressive
.
The OLED footnote is weird, I assume they shipped something, so it has to be disclosed, but at the same time it was likely close to nothing as they didnt even bothered splitting and Nintendo basically always splits their SKU, specially when they come in with a different price point
This is what I'm thinking as well. It would be very weird for them to later course correct, so I don't think it's anything worth nothing.
Yeah that makes sense. Is there going to be a Q&A session? I'm curious if someone might ask about that.
My 10 yr old daughter got into Pokemon early this year. I figured Snap would be right up in her valley. Show her the trailer and fully expecting her to beg me for the game. That didn't happen. She was so unimpressed by the trailer and had no interest in the game.
I think nostalgia might be the only driving force for selling the game. I certainly didn't expect that.
It never gets old when I scroll down and the bars in the char just pop up. Thanks for making them!
And thanks for everyone who made any chart/table/summaries for the thread!
There isn't much to ask, OLED is a different SKU and Nintendo gives updates every 10k. When Pokemon released first only in Japan but there were 10-20k copies sent overseas for a number of reasons these shipments were mentioned at financial reports.
>discounts
yea, nah. NPS is pretty much exhausted. if Nintendo wasn't adverse to deep sales, then maybe
I wonder if they're holding off on Nintendo Selects so they don't cannibalize new releases down the road. Why buy Mario Party Superstars for $60 if you can get Super Mario Party for $20?
some games make sense not to really do sales, like Super Mario Party. but games like Pokemon, Fire Emblem, Astral Chain, etc, would all benefit from frequent, large sales. with the way digital cataloging goes, they don't need a selects line, but seasonal sales where you can get the games for 50% off would do wonders for longevity. just look at Capcom, Ubisoft, etc
I totally agree. I think it would ultimately help the ecosystem of the Switch to have either a budget line or more frequent sales.
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Nintendo have always seemed reluctant to perform deep price cuts to continue moving units. They obviously have done select lines/ players choice in the past, but games have taken longer to appear on these lines compared to things like the Playstation Platinum line. They clearly place a higher priority in projecting the notion that their software doesn't really drop in price do no point waiting.
I expect they'll stick to this strategy and continue to rely on periodic 30% digital discounts instead of a select line. Some titles would clearly benefit from a select line though.
I expect they'll stick to this strategy and continue to rely on periodic 30% digital discounts instead of a select line. Some titles would clearly benefit from a select line though.
so the difference between the switch and the wii is the best-selling single-platform game in history.
