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Nintendo FY3/2023 Q1 Earnings Release, Switch Hardware Q1 - 3.43M units (-22.9% YoY), 111.08M units LTD

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(They publish Dark Souls)
Nintendo's 1st Quarter earnings release for the fiscal year ending March 2023.

See Post #2 (threadmarked) for regional HW/SW data and the top selling titles as there isn't enough space to fit in the OP.

Note: M = Million (or rather 10^6)

Past earnings release data from FY3/2017 to FY3/2021 can be found here (Note, thread hasn't been updated with FY3/22 data. That will be done soon): https://www.installbaseforum.com/fo...data-from-fy3-2017-to-present-for-switch.205/

Regarding Margin of Error in the data:
https://www.installbaseforum.com/fo...fy3-2017-to-present-for-switch.205/post-19409

1st Quarter Earnings Release, data as of June 30th, 2022:
https://www.nintendo.co.jp/ir/pdf/2022/220803e.pdf

Code: 
+----------------------------------+
| Nintendo Co., Ltd. |    FY3/2023 |
+----------------------------------+
| Consolidated Operating Results   |
+----------------------------------+
+--------------------------------------+
| Net Sales                  |    YoY% |
+--------------------------------------+
| 1st Quarter |    ¥307,460M |  -4.71% |
+======================================+
+--------------------------------+
| FY3/23 Forecast |  ¥1,600,000M |
+--------------------------------+
+--------------------------------------+
| Operating Income           |    YoY% |
+--------------------------------------+
| 1st Quarter |    ¥101,647M | -15.12% |
+======================================+
+--------------------------------+
| FY3/23 Forecast |    ¥500,000M |
+--------------------------------+
+-----------------------+
| Operating Margin      |
+-----------------------+
| 1st Quarter |  33.06% |
+=======================+
+---------------------------+
| FY3/23 Forecast |  31.25% |
+---------------------------+
+--------------------------------------+
| Net Profit                 |    YoY% |
+--------------------------------------+
| 1st Quarter |    ¥118,984M | +28.29% |
+======================================+
+--------------------------------+
| FY3/23 Forecast |    ¥340,000M |
+--------------------------------+
###
Capital Adequacy Ratio: 78.7%

Current Assets: ¥2,009,748 million

Current Liabilities: ¥491,072 million

Cash and deposits: ¥1,123,084 million

Shareholder's equity: ¥1,906,325 million

Inventories: ¥256,241 million

Hardware/Software sales units: https://www.nintendo.co.jp/ir/en/finance/hard_soft/index.html

Code: 
+------------------------------+
| Nintendo Switch   | FY3/2023 |   
+------------------------------+   
| Sales Units and Forecast     |   
+------------------------------+   
+---------------------------------+
| Switch      |   Units |    YoY% |
+---------------------------------+
| 1st Quarter |   1.32M | -60.12% |
+=================================+
| FY3/23 Cml. |   1.32M |
+-----------------------+
| Life-To-Date|  84.77M |
+-----------------------+
###
+---------------------------------+
| Switch Lite |   Units |    YoY% |
+---------------------------------+
| 1st Quarter |   0.59M | -48.25% |
+=================================+
| FY3/23 Cml. |   0.59M |
+-----------------------+
| Life-To-Date|  18.99M |
+-----------------------+
###
+-----------------------+
| Switch OLED |   Units |
+-----------------------+
| 1st Quarter |   1.52M |
+=======================+
| FY3/23 Cml. |   1.52M |
+-----------------------+
| Life-To-Date|   7.32M |
+-----------------------+
###
+-------------+
| Hardware    |-------------------+
| Total       |   Units |    YoY% |
+---------------------------------+
| 1st Quarter |   3.43M | -22.92% |
+=================================+
| FY3/23 Cml. |   3.43M |
+-----------------------+
| Life-To-Date| 111.08M |
+---------------------------+
| FY3/23 Forecast |  21.00M |
+---------------------------+
###
+-------------+
| Software    |-------------------+
| Total       |   Units |    YoY% |
+---------------------------------+
| 1st Quarter |  41.41M |  -8.57% |
+=================================+
| FY3/23 Cml. |  41.41M |
+-----------------------+
| Life-To-Date| 863.60M |
+---------------------------+
| FY3/23 Forecast | 210.00M |
+---------------------------+
(Software sales units include both
packaged and downloadable versions
of software.)
###
+------------------------+
| Mobile, IP related     |----------+
| income, etc.           |    YoY%  |
+-----------------------------------+
| 1st Quarter | ¥10,981M |  -16.80% |
+===================================+
| FY3/23 Cml. | ¥10,981M |
+------------------------+
(Includes income from smart-device
content and royalty income.)
###

Supplemental information:

Code: 
+------------------------------+
| Nintendo Co., Ltd.| FY3/2023 |
+------------------------------+
| Key/Digital Sales Indicators |
+------------------------------+
+------------------------------+
| Proportion of overseas sales |
+------------------------------+
| 1st Quarter       |    79.9% |
+==============================+
+------------------------------+
(※ Proportion of overseas (outside of Japan)
sales to total sales)
+------------------------------+
| Proportion of hardware sales |
+------------------------------+
| 1st Quarter       |    43.8% |
+==============================+
+------------------------------+
(※ Proportion of hardware
 (including accessories) sales
to total dedicated video game platform sales)
+------------------------------+
| Proportion of first party    |
| software sales               |
+------------------------------+
| 1st Quarter       |    76.3% |
+==============================+
+------------------------------+
(※ Proportion of first-party software sales
to total dedicated video game software sales)
+------------------------------+
| Digital Sales                |
+------------------------------+
| 1st Quarter       |   ¥88.0B |
+==============================+
+------------------------------+
("※ Digital sales include a) downloadable
versions of packaged software,
b) download-only software,
c) add-on content and
d) Nintendo Switch Online, etc.
＊"Downloadable versions of packaged software"
indicates the downloadable version of
software that is offered both physically
and digitally.")
+------------------------------+
| Proportion of Digital Sales  |
+------------------------------+
| 1st Quarter       |    53.0% |
+==============================+
+------------------------------+
(※ Proportion of digital sales to total
dedicated video game software sales )
+-------------------------------------+
| Proportion of downloadable versions |
| of Packaged Software Sales          |
+-------------------------------------+
| 1st Quarter       |           52.1% |
+=====================================+
+-------------------------------------+
(※ Proportion of downloadable versions of
packaged software sales to total digital sales
as indicated above: a/(a+b+c+d) )

Code: 
+------------------------------------------+
| Nintendo Switch FY Million-Seller Titles |
+------------------------------------------+
+------------------------------------------+
| Title and Rank                           |
+------------------------------------------+
| Units                                    |
+------------------------------------------+
+------------------------------------------+
| Kirby and the Forgotten Land   | Rank 1  |
+------------------------------------------+
| Area         |   Japan | Overseas|
+----------------------------------+
| 1st Quarter  |   0.41M |   1.47M |
+==================================+
| FY3/23 Cml.  |   0.41M |   1.47M |
| Area/WW FY % |  21.81% |  78.19% |
+----------------------------------+
| Global       | WW FY   | WW LTD  |
+----------------------------------+
| 1st Quarter  |   1.88M |   4.53M |
+==================================+
| FY3/23 Cml.  |   1.88M |   4.53M |
| WW FY/LTD %  |  41.50% |  58.50% |
+----------------------------------+
+------------------------------------------+
| Mario Kart 8 Deluxe            | Rank 2  |
+------------------------------------------+
| Area         |   Japan | Overseas|
+----------------------------------+
| 1st Quarter  |   0.30M |   1.18M |
+==================================+
| FY3/23 Cml.  |   0.30M |   1.18M |
| Area/WW FY % |  20.27% |  79.73% |
+----------------------------------+
| Global       | WW FY   | WW LTD  |
+----------------------------------+
| 1st Quarter  |   1.48M |  46.82M |
+==================================+
| FY3/23 Cml.  |   1.48M |  46.82M |
| WW FY/LTD %  |   3.16% |  96.84% |
+----------------------------------+
+------------------------------------------+
| Nintendo Switch Sports         | Rank 3  |
+------------------------------------------+
| Area         |   Japan | Overseas|
+----------------------------------+
| 1st Quarter  |   0.90M |   3.94M |
+==================================+
| FY3/23 Cml.  |   0.90M |   3.94M |
| Area/WW FY % |  18.60% |  81.40% |
+----------------------------------+
| Global       | WW FY   | WW LTD  |
+----------------------------------+
| 1st Quarter  |   4.84M |   4.84M |
+==================================+
| FY3/23 Cml.  |   4.84M |   4.84M |
| WW FY/LTD %  | 100.00% |   0.00% |
+----------------------------------+
+------------------------------------------+
| Mario Strikers: Battle League  | Rank 4  |
+------------------------------------------+
| Area         |   Japan | Overseas|
+----------------------------------+
| 1st Quarter  |   0.13M |   1.79M |
+==================================+
| FY3/23 Cml.  |   0.13M |   1.79M |
| Area/WW FY % |   6.81% |  93.72% |
+----------------------------------+
| Global       | WW FY   | WW LTD  |
+----------------------------------+
| 1st Quarter  |   1.91M |   1.91M |
+==================================+
| FY3/23 Cml.  |   1.91M |   1.91M |
| WW FY/LTD %  | 100.00% |   0.00% |
+----------------------------------+
###

Top selling title sales units as of June 30th, 2022:
https://www.nintendo.co.jp/ir/en/finance/software/index.html

Go to post #2 for the Regional data and top ten selling titles data.
 
Last edited:
Regional HW/SW and Top Ten Selling Titles
  • Index
    • Regional HW/SW data:

    Code: 
    +--------------------------------------------+
| Nintendo Switch Regional Data   | FY3/2022 |
+--------------------------------------------+
+--------------------------------------------+
| Switch | Japan  |The     | Europe | Other  |
|        |        |Americas|        |        |
+--------------------------------------------+
|Q1 Units|  0.22M |  0.49M |  0.53M |  0.08M |
|Q1 YoY% |-73.49% |-55.45% |-35.37% |-85.71% |
|Q1 WW%  | 16.67% | 37.12% | 40.15% |  6.06% |
+============================================+
| FY3/22 Cumulative                          |
+--------------------------------------------+
| Units  |  0.22M |  0.49M |  0.53M |  0.08M |
| WW%    | 16.67% | 37.12% | 40.15% |  6.06% |
+--------------------------------------------+
| Life-To-Date                               |
+--------------------------------------------+
| Units  | 19.00M | 32.57M | 22.68M | 10.52M |
| WW%    | 22.41% | 38.42% | 26.75% | 12.41% |
+--------------------------------------------+
+--------------------------------------------+
| Switch | Japan  |The     | Europe | Other  |
| Lite   |        |Americas|        |        |
+--------------------------------------------+
|Q1 Units|  0.10M |  0.33M |  0.12M |  0.04M |
|Q1 YoY% |-70.59% |-31.25% |-53.85% |-20.00% |
|Q1 WW%  | 16.95% | 55.93% | 20.34% |  6.78% |
+============================================+
| FY3/22 Cumulative                          |
+--------------------------------------------+
| Units  |  0.10M |  0.33M |  0.12M |  0.04M |
| WW%    | 16.95% | 55.93% | 20.34% |  6.78% |
+--------------------------------------------+
| Life-To-Date                               |
+--------------------------------------------+
| Units  |  4.93M |  8.33M |  4.45M |  1.27M |
| WW%    | 25.96% | 43.87% | 23.43% |  6.69% |
+--------------------------------------------+
+--------------------------------------------+
| Switch | Japan  |The     | Europe | Other  |
| OLED   |        |Americas|        |        |
+--------------------------------------------+
|Q1 Units|  0.39M |  0.46M |  0.45M |  0.21M |
|Q1 WW%  | 25.66% | 30.26% | 29.61% | 13.82% |
+============================================+
| FY3/22 Cumulative                          |
+--------------------------------------------+
| Units  |  0.39M |  0.46M |  0.45M |  0.21M |
| WW%    | 25.66% | 30.26% | 29.61% | 13.82% |
+--------------------------------------------+
| Life-To-Date                               |
+--------------------------------------------+
| Units  |  2.00M |  2.40M |  1.57M |  1.34M |
| WW%    | 27.32% | 32.79% | 21.45% | 18.31% |
+--------------------------------------------+
+--------------------------------------------+
| Switch | Japan  |The     | Europe | Other  |
|Hardware|        |Americas|        |        |
+--------------------------------------------+
|Q1 Units|  0.72M |  1.27M |  1.11M |  0.33M |
|Q1 YoY% |-37.93% |-20.13% | +2.78% |-46.77% |
|Q1 WW%  | 20.99% | 37.03% | 32.36% |  9.62% |
+============================================+
| FY3/22 Cumulative                          |
+--------------------------------------------+
| Units  |  0.72M |  1.27M |  1.11M |  0.33M |
| WW%    | 20.99% | 37.03% | 32.36% |  9.62% |
+--------------------------------------------+
| Life-To-Date                               |
+--------------------------------------------+
| Units  | 25.95M | 43.30M | 28.71M | 13.13M |
| WW%    | 23.36% | 38.98% | 25.85% | 11.82% |
+--------------------------------------------+
+--------------------------------------------+
| Switch | Japan  |The     | Europe | Other  |
|Software|        |Americas|        |        |
+--------------------------------------------+
|Q1 Units|  8.07M | 17.14M | 11.52M |  4.67M |
|Q1 YoY% | -0.74% |-23.31% | +1.50% |+34.97% |
|Q1 WW%  | 19.49% | 41.39% | 27.82% | 11.28% |
+============================================+
| FY3/22 Cumulative                          |
+--------------------------------------------+
| Units  |  8.07M | 17.14M | 11.52M |  4.67M |
| WW%    | 19.49% | 41.39% | 27.82% | 11.28% |
+--------------------------------------------+
| Life-To-Date                               |
+--------------------------------------------+
| Units  |162.43M |386.41M |249.45M | 65.29M |
| WW%    | 18.81% | 44.74% | 28.88% |  7.56% |
+--------------------------------------------+
###

    Top selling title sales units as of June 30th, 2022:
    https://www.nintendo.co.jp/ir/en/finance/software/index.html

    Code: 
    +--------------------------------+
| Switch - Top Selling Titles    |
+--------------------------------+
+--------------------------------+
| Units                          |
+--------------------------------+
+-------------------------------------------+
| Mario Kart 8 Deluxe            |   Rank 1 |
+-------------------------------------------+
| 1st Quarter         |    1.49M |
+================================+
| FY3/23 Cumulative   |    1.49M |
| Life-To-Date        |   46.82M |
+-------------------------------------------+
| Animal Crossing: New Horizons  |   Rank 2 |
+-------------------------------------------+
| 1st Quarter         |    0.74M |
+================================+
| FY3/23 Cumulative   |    0.74M |
| Life-To-Date        |   39.38M |
+-------------------------------------------+
| Super Smash Bros. Ultimate     |   Rank 3 |
+-------------------------------------------+
| 1st Quarter         |    0.65M |
+================================+
| FY3/23 Cumulative   |    0.65M |
| Life-To-Date        |   28.82M |
+-------------------------------------------+
| The Legend of Zelda: Breath of |          |
| the Wild                       |   Rank 4 |
+-------------------------------------------+
| 1st Quarter         |    0.59M |
+================================+
| FY3/23 Cumulative   |    0.59M |
| Life-To-Date        |   27.14M |
+-------------------------------------------+
| Pokémon Sword / Pokémon Shield |   Rank 5 |
+-------------------------------------------+
| 1st Quarter         |    0.23M |
+================================+
| FY3/23 Cumulative   |    0.23M |
| Life-To-Date        |   24.50M |
+-------------------------------------------+
| Super Mario Odyssey            |   Rank 6 |
+-------------------------------------------+
| 1st Quarter         |    0.43M |
+================================+
| FY3/23 Cumulative   |    0.43M |
| Life-To-Date        |   23.93M |
+-------------------------------------------+
| Super Mario Party              |   Rank 7 |
+-------------------------------------------+
| 1st Quarter         |    0.28M |
+================================+
| FY3/23 Cumulative   |    0.28M |
| Life-To-Date        |   18.06M |
+-------------------------------------------+
| Pokémon Brilliant Diamond /    |          |
| Pokémon Shining Pearl          |   Rank 8 |
+-------------------------------------------+
| 1st Quarter         |    0.14M |
+================================+
| FY3/23 Cumulative   |    0.14M |
| Life-To-Date        |   14.79M |
+-------------------------------------------+
| Pokémon Let's Go Pikachu /     |          |
| Pokémon Let's Go Eevee         |   Rank 9 |
+-------------------------------------------+
| 1st Quarter         |    0.01M |
+================================+
| FY3/23 Cumulative   |    0.01M |
| Life-To-Date        |   14.66M |
+-------------------------------------------+
| Ring Fit Adventure             |  Rank 10 |
+-------------------------------------------+
| 1st Quarter         |    0.45M |
+================================+
| FY3/23 Cumulative   |    0.45M |
| Life-To-Date        |   14.54M |
+--------------------------------+
     
    Last edited:
  • Index
    • Switch vs other consoles

    Worldwide | Hardware
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    FROKTNl.png

    Worldwide | Software
    EmdNUK9.png

    Da1eEnZ.png


    Japan | Hardware
    fqYIaVx.png

    Japan | Software
    89m3RxI.png


    The Americas | Hardware
    i4O61PH.png

    The Americas | Software
    nmGYPTn.png


    Europe + Other | Hardware
    zCd6GyW.png

    Europe + Other | Software
    uZEG5RV.png
     
    Last edited:
    Both Switch hardware and software sales were lower than I expected.

    Switch HW sales dropping YoY was to be expected given it's age and the impact of components shortages, but SW sales dropping YoY is a bit surprising given the stronger software lineup.

    It's also very unfortunate that we will have to wait until October before getting a sales update for games like Pokemon Legends Arceus and Super Mario Party.
     
    awng782 said:
    Both Switch hardware and software sales were lower than I expected.

    Switch HW sales dropping YoY was to be expected given it's age and the impact of components shortages, but SW sales dropping YoY is a bit surprising given the stronger software lineup.
    Click to expand...
    I agree and I believe that it shows the importance of hardware sales to boost software sales. Lots of evergreens and those are tied to hardware.
     
    I am actually shocked by Battle League's launch numbers.

    Kirby though, always knew :)
     
    Yeah i think Drake is needed to really fulfill the software sales potential of the Switch eco system. It's obviously not the same but imagine how software sales would have developed on PS/XBOX if they werent as active with hardware upgrades, despite a majority of games still being base PS4/XBO games.

    In general numbers are still amazing though all things considered.
     
    Kenka said:
    Which is weird. The placement of both titles in the last three NPDs as well as in the eShop suggest that they have done well enough to enter the club. I am a bit puzzled.
    Click to expand...
    Unless Nintendo is changing up how the tally is done, I can't imagine them not being very close to 1M at least
     
    Kenka said:
    Which is weird. The placement of both titles in the last three NPDs as well as in the eShop suggest that they have done well enough to enter the club. I am a bit puzzled.
    Click to expand...

    Good chances that especially Lego Star Wars was already close to cross the milestone as of June 30th but just didn't manage to do it.
     
    Kenka said:
    Which is weird. The placement of both titles in the last three NPDs as well as in the eShop suggest that they have done well enough to enter the club. I am a bit puzzled.
    Click to expand...
    biggest sales drop could be seen in the US
    but there is one more thing, The companies that made the game may not have given the current figure at the moment.
     
    I thought the FY22-23 hardware forecast was 21 million? Wasn't 25.5 last year's forecast?

    If that's correct I think this first quarter is about what we'd expect,  maybe a touch soft but not enough to adjust the forecast yet.

    Similarly with software, I think the 190 million target remains appropriate after this quarter.
     
    Also digital
    "Digital sales in the first quarter increased by 16.0% year-on-year to 88.0 billion yen, accounting for 53.0% of total software sales for our dedicated video game platform. " 46.9(fy22/q1) to 53(fy23/q1)
     
    I mean the decline from 2021 is being seen across the board. Clearly people are spending less on games as they increase spending elsewhere. But generally I feel these numbers will mean a Switch 2 move if they can get the supply side sorted.
     
    The Nintendo FY million seller titles are up now
     
    Software sales were a bit lower than expected, but given all that happened around the world in the last three months, nothing should be a surprise tbh.
     
    Kenka said:
    Which is weird. The placement of both titles in the last three NPDs as well as in the eShop suggest that they have done well enough to enter the club. I am a bit puzzled.
    Click to expand...
    I think Lego star wars shipment is split between Q4 FY 2021 and Q1 FY 2022

    FQS2OZtXwAIOwqi
     
    On more Japan:WW ratio talk, things are looking so promising with Kirby. It will finally no longer be a Japan-centric franchise if it keeps up at the same pace.

    If Splatoon 3 can also break out of such ratio, then it will be an easy 20m seller.

    MK8D ratio also finally improved after so many declines. This confirmed my theory a while back that strong second hand market is severely limiting the potential of MK8D in Japan considering how much it sold WW. With such enticing DLC, much fewer people will be selling their copies and there will be lesser used copies in the wild. I expect the ratio to improve further next quarter.
     
    awng782 said:
    Switch HW sales dropping YoY was to be expected given it's age and the impact of components shortages, but SW sales dropping YoY is a bit surprising given the stronger software lineup.
    Click to expand...

    SW dropped on all fronts -- Sony and Microsoft as well. Don't forget that we are coming out of peak covid years.

    According to NPD, US gamers spent 13% less on video games in the second quarter of this calendar year compared to 2021.
     
    Fatih_656 said:
    Also digital
    "Digital sales in the first quarter increased by 16.0% year-on-year to 88.0 billion yen, accounting for 53.0% of total software sales for our dedicated video game platform. " 46.9(fy22/q1) to 53(fy23/q1)
    Click to expand...
    Is this first time Nintendo digital software sales have represented over half of the total?
    If so, thats a pretty big deal given their goals to increase the digital share (higher profit margin)
     
    awng782 said:
    but SW sales dropping YoY is a bit surprising given the stronger software lineup.
    Click to expand...
    Looking at Switch SW sales by region, sales were flat YoY in Japan & Europe and way up YoY in the (fairly small) "other" markets, but sales took somewhat of a nosedive in America.
    FZOEci5acAA5Uak

    Kinda curious why the Americas took such a huge hit in SW sales while other regions saw stable or improved numbers YoY.
     
    Last edited:
    I have finished updating the thread, if there are any errors please point them out to me.
     
    awng782 said:
    Looking at Switch SW sales by region, sales were flat YoY in Japan & Europe and way up YoY in the (fairly small) "other" markets, but sales took somewhat of a nosedive in America.
    FZOEci5acAA5Uak

    Kinda curious why the Americas took such a huge hit in SW sales while other regions saw stable or improved numbers YoY.
    Click to expand...

    The USA is the region where competition is the fiercest. That may be a factor. For example in Spain, where PS5 and XS shipped numbers are absurdly low, Switch HW is up YoY and not by a small amount.
     
    Kirby numbers are incredible, and I'm so happy. It was a lovely and very well-done game.

    I'm assuming the higher profit in spite of lower sales may be aided by the weak yen?
     
    Huge warning sign in the US about platform engagement, given the absolutely massive drop of SW sales there.

    Perhaps the Switch is losing engagement due to its age, or perhaps the slate isn't that strong (but it is supposed to have PLA + Kirby support), regardless decision makers at Nintendo need to watch out before the bottom falls out under them just like the did for Wii and DS transitions.

    Strikers probably overperformed in EU, but my impression it is relatively weaker in US. This is why I don't see it as a pillar like PLA and Kirby is.
     
    Last edited:
    Fiendslayer said:
    Huge warning sign in the US about platform engagement, given the absolutely massive drop of SW sales there.

    Perhaps the Switch is losing engagement due to its age, or perhaps the slate isn't that strong (but it is supposed to have PLA + Kirby support), regardless decision makers at Nintendo need to watch out before the bottom falls out under them just like the did for Wii and DS transitions.

    Strikers probably overperformed in EU, but my impression it is relatively weak in US. This is why I don't see it as a pillar like PLA and Kirby is.
    Click to expand...
    Fully agreed. Switch is starting to peter out now... which it should do, it's almost 6 years old now; and still with no word of a successor...

    Nintendo is in danger of repeating the same mistake that they pulled with the Wii-Wii U transition, waiting far too long to release a successor; into a market where their once successful current console brand has been allowed to die off in the public conciousness before the successor arrives. They need to strike while the iron is still hot, not after it has gone cold.
     
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