Nintendo fremlægger regnskabet for perioden april-september 2021

During the six months ended September 30, 2021, sales of Nintendo Switch titles released this fiscal year all exhibited strong growth. For example, The Legend of Zelda: Skyward Sword HD sold 3.60 million units, New Pokémon Snap (see note 1) sold 2.19 million units, and Mario Golf: Super Rush sold 1.94 million units. In addition, titles released in previous fiscal years also continued to sell well and contributed to the overall growth in software sales, with Mario Kart 8 Deluxe selling 3.34 million units (for cumulative sales of 38.74 million units), and Animal Crossing: New Horizons selling 2.22 million units (for cumulative sales of 34.85 million units). Sales of titles from other software publishers also continued to grow steadily, bringing the total number of million-seller titles during this period to 18, including titles from these other software publishers. Last fiscal year, the March 2020 release of Animal Crossing: New Horizons prompted a significant increase in hardware and software sales, so compared to the same period of last year, unit sales have declined for both hardware and software. As a result, hardware sales totaled 8.28 million units (a decrease of 34.0% year-on-year), and software sales totaled 93.89 million units (a decrease of 6.3% year-on-year).

Turning to our digital business for dedicated video game platforms, download-only software for Nintendo Switch and Nintendo Switch Online memberships sold well, but sales of downloadable versions of packaged software declined, leading to digital sales of 144.2 billion yen (a decrease of 15.9% year-on-year).

For the mobile business, many consumers continued to enjoy titles that were released in previous fiscal years. Royalty income was steady with the result that our mobile, IP related income totaled 25.5 billion yen (a decrease of 4.6% year-on-year).

As a result, net sales totaled 624.2 billion yen, with overseas sales of 488.7 billion yen accounting for 78.3% of the total. Operating profit came to 219.9 billion yen, ordinary profit was 236.2 billion yen, and profit attributable to owners of parent totaled 171.8 billion yen.

The Nintendo Switch family of systems welcomed a new member in October with the release of Nintendo Switch – OLED
Model equipped with a vibrant OLED display, giving consumers another model option to choose from to better suit their
preferences and lifestyles. We aim to convey the appeal of the hardware trio of Nintendo Switch, Nintendo Switch Lite, and Nintendo Switch – OLED Model to further expand sales. As for software, Metroid Dread and Mario Party Superstars were both released in October, and upcoming releases include Pokémon Brilliant Diamond and Pokémon Shining Pearl (November), Big Brain Academy: Brain vs. Brain (December) and Pokémon Legends: Arceus (January). There is also a robust variety of appealing titles from other software publishers scheduled for release. And in addition to new titles, we will work to reinforce sales of popular titles that have already been released. We are also working to invigorate the platform by enhancing our Nintendo Switch Online service. A new membership plan called Nintendo Switch Online + Expansion Pack offers members access to not only the basic services but also Nintendo 64 titles and other titles, as well as paid add-on content for Animal Crossing: New Horizons.

In our mobile business, we have collaborated with Niantic to develop a new application featuring Pikmin for smart devices called Pikmin Bloom. The application was released by Niantic, in a gradual distribution beginning at the end of October. We will focus our efforts on encouraging more consumers to continue to enjoy playing this application, along with the others that we have previously released.

In regard to business risk, the extended impact of both COVID-19 and the global semiconductor shortage creates a state of continued uncertainty, with the possibility of future impact on production and shipping. While these and other unforeseen risks exist, we continue to take all necessary measures in conducting business.