By
Godfrey Benjamin
October 18th, 2023
Nintendo’s flagship Switch games console series remains a dominant force in the gaming industry.
Nintendo Co Ltd (TYO: 7974), the legendary Japanese gaming company has once again proven its prowess by reporting a significant surge in revenue and operating profit for the June quarter.
This incredible achievement can be ascribed to the popularity of both the “Super Mario Bros. Movie” and the most recent installment in the beloved Zelda games for the Nintendo Switch system.
Nintendo’s Market Strategy and Innovations
Nintendo stated in an earnings release that net sales for the first quarter increased by a remarkable 50.0% year over year, reaching an astonishing 461.3 billion yen. On the other hand, operating profits rose by 82.4% reaching 185.4 billion Yen, while ordinary profit increased by an astonishing 52.2% to 253.7 billion yen.
At the heart of Nintendo’s Q1 success is the triumph of “The Super Mario Bros. Movie”. Released in April, the film has not only captivated audiences with its nostalgic charm but has also become a major phenomenon, amassing an impressive $1 billion at the Box Office.
Produced in collaboration with Universal Studios, the movie’s success has acted as a halo effect, enticing users to explore other offerings from the Japanese gaming giant. Nintendo reported that the film played a pivotal role in supporting sales of games featuring the beloved character, Mario.
The effect extended to titles like “Mario Kart 8 Deluxe”, showcasing the interconnected nature of Nintendo’s intellectual properties and their ability to drive each other’s success. Beyond games, the Mario movie also had a substantial impact on Nintendo’s mobile and intellectual property-related business.
The company reported a staggering 190% year-on-year increase in revenue, reaching 31.8 billion Japanese Yen.
Alongside the cinematic success, Nintendo’s gaming division has also made waves with the release of “The Legend of Zelda: Tears of the Kingdom”. Launched in May, this highly-acclaimed title has shattered records, becoming the fastest-selling game in the history of the revered Legend of Zelda series.
The latest installment in the revered Zelda franchise achieved remarkable sales figures, with 18.51 million units sold in the quarter alone.
Nintendo Switch Console Boosts Revenue
Meanwhile, Nintendo’s flagship Switch games console series remains a dominant force in the gaming industry, as evidenced by the company’s recent sales figures and the ongoing speculation surrounding a potential refresh.
Nintendo had initially projected sales of 15 million units for the current fiscal year ending in March 2024 for its Switch console series. This forecast represents a modest decrease from the previous fiscal year’s sales total of just under 18 million units. However, the company’s recent performance paints a more optimistic picture.
Nintendo reported sales of 3.91 million Switch units in the June quarter, a 13.9% rise over the previous year. This surge in sales is a significant achievement, given the console’s age and the potential concerns about waning interest.
At the time of writing, Nintendo stock is up marginally and is pegged at 6,357 Japanese yen.