Nintendo Earnings vs. Expectations
In the full fiscal year earnings report released by the video game company, Nintendo saw sales increase over the course of the year to ¥1.76 trillion ($16 billion). In comparison to the year before, this is a 34% increase in total sales. The spike in total sales for the business helped Nintendo to also report a nearly 86% rise in profits. The video game company reported around ¥480.4 billion ($4.4 billion) in total profit for the year as console and specific titles saw incredible popularity amongst consumers amid the pandemic.
The profit numbers also proved to be better than the expectations of Nintendo itself who had only projected around ¥400 billion ($3.6 billion) for the year. The year of success can largely be attributed to the massive explosion in sales for the flagship console, the Nintendo Switch, and the many video game titles that saw growth this year. In fact, the gaming business sold 28.83 million units over the course of the fiscal year, a whopping 37% more than the year before.
Total game sales were also up 37% compared to the previous year for Nintendo, with “Animal Crossing: New Horizons” leading the charge, selling 20.85 million units. “Mario Kart 8 Deluxe” was also a major hit with 10.62 million units being sold, while "Super Mario 3D All-Stars” and “Ring Fit Adventure” also heavily contributed to the total revenue with 9.01 million and 7.38 million units being sold, respectively.
Future Outlook for Nintendo
While the video game company saw massive success in the 2020-2021 fiscal year, there is no expectation for business to remain this strong. As reopenings across the globe look to shift consumer spending back toward other activities besides video games, Nintendo projects business to shrink, only estimating a profit of ¥340 billion ($3 billion). The 27% drop in profits will still be ¥90 billion ($824 million) higher than the numbers from last year as the company still expects to steadily grow with the pandemic year remembered as an extraordinary one to most.
In a message to shareholders and business investors, Nintendo President Shuntaro Furukawa said, “Based on our belief that the true value of entertainment lies in its uniqueness, Nintendo will strive to increase our corporate value by offering unique entertainment that plays to the company’s strengths, continuing to adapt to the times and cherish the spirit of creativity. We humbly ask you, our shareholders and investors, for your continued support.”
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.