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Nintendo financial report shows a strong 2020 and conservative forecast for 2021

Nintendo released its annual financial report earlier this month. The financial portion of the report leads with the core good news for the 2020 fiscal year (FY20) and shows that sales and profits are broadly higher than the 2019 fiscal year (FY19). Net sales were up 9% compared to FY19 and profits were up at least 30% across all three profit metrics: operating, ordinary, and net. While total sales were up 9% for the year, there was only an 8.8% increase in dedicated game platform sales. By comparison, mobile and IP royalty sales increased by 11.5%. An interesting category that saw a large increase in sales was a category which they labeled “Playing cards, etc.” and was up by 57.1%. This increase was partially attributed to Nintendo TOKYO, its first store in the country of Japan, opening in the fall of 2019.
 
Operating results for the fiscal year ended March 31, 2020
For the fiscal year ended March 31, 2020, Nintendo Switch Lite launched in September as a compact, lightweight, and easy-to-carry dedicated handheld system, and Nintendo Switch performed very well without losing momentum, resulting in significant sales growth for the entire Nintendo Switch family. Looking at software, Pokémon Sword and Pokémon Shield became big hits, posting sales of 17.37 million units, and Animal Crossing: New Horizons, released in March, sold 11.77 million units, which is now the best start ever for a Nintendo Switch title. In addition to titles like Luigi’s Mansion 3 and Super Mario Maker 2 that were released during this fiscal year, sales also continued to grow steadily for popular titles released in previous fiscal years and for titles from other software publishers. The total number of million-seller titles during this fiscal year reached 27 titles, including those from other software publishers. Nintendo Switch also launched in China through Tencent Holdings Limited in December.

Because of COVID-19, production and shipments of the Nintendo Switch console, accessories like the Joy-Con controllers, and Ring Fit Adventure faced delays in some regions from February through March, but this only had limited impact on business results for this fiscal year.

As a result, sales of both hardware and software exceeded last year's good results. In terms of volume, hardware sales for this fiscal year totaled 21.03 million units (24.0% increase on a year-on-year basis), and software sales totaled 168.72 million units (42.3% increase on a year-on-year basis).

For Nintendo 3DS, hardware sales totaled 0.69 million units (73.0% decrease on a year-on-year basis), and software sales totaled 4.99 million units (62.3% decrease on a year-on-year basis).

Turning to our digital business for dedicated video game platforms, in addition to the strong sales of downloadable versions of packaged software for Nintendo Switch, the steady growth in sales of download-only software and add-on content, and the contribution from Nintendo Switch Online throughout the year all helped to bring overall digital sales to 204.1 billion yen (71.8% increase on a year-on-year basis).

For the mobile business, many consumers continue to enjoy applications released during this fiscal year, such as Mario Kart Tour, as well as titles that were released in previous fiscal years. Our mobile, IP related income reached 51.2 billion yen (11.5% increase on a year-on-year basis).

In total, net sales reached 1,308.5 billion yen (including overseas sales of 1,007.3 billion yen, or 77.0% of the total sales). Operating profit came to 352.3 billion yen, ordinary profit was 360.4 billion yen, and net profit attributable to owners of parent totaled 258.6 billion yen for this fiscal year.

Source: Nintendo Financial Report