Since the last series of financial statements released, Nintendo has received positive reviews at E3 and introduced the Switch OLED, which gives us an idea of why the company is still optimistic about making big profits this year. The headline summary states that estimates given in the end-of-year results remain unchanged in today’s first-quarter summary – Nintendo expects to make a big profit this year.
Of course, these numbers will still be way down significantly in 2020, a year when unique and unprecedented global circumstances have undoubtedly positively affected the profits of Nintendo’s business. The demand for entertainment was higher than ever before, and Switch consoles were paired with software giants like Animal Crossing: New Horizons hurt my nerves and sold in huge numbers.
Unsurprisingly, sales and profits in the first quarter fell from their 2020/2021 peers, but as you can see in the breakdown below, Nintendo is still making significant profits, adding to its already sizable cash reserves.
- Net sales of 322.6 billion yen (about $ 2.94 billion), down 9.9% from the prior year.
- Operating profit – 119.7 billion yen (about 1.09 billion US dollars), down 17.3% from the 2020 equivalent.
- Net profit – 92.7 billion yen (about 846 million US dollars), which is 12.9% less than in the 2020 equivalent.
Sales will be realized in the next quarter The Legend of Zelda: Skyward Sword HDfor example, while Nintendo is also gearing up for a good third quarter / holiday season with major game releases and a Switch OLED model.
It will be interesting to see if Nintendo continues to achieve its goals during these vital periods.