Nintendo releases fiscal year 2016 earnings report

Kristi Paul
April 28, 2017

Nintendo said Thursday, April 27, 2017, it has sold 2.74 million Switch machines and 5.46 million units of Switch software since sales began in March. Nintendo says that it expects to sell an additional 10 million Switch consoles in fiscal 2017.

Lastly, it's worth pointing out that Nintendo saw both operating profit and revenue decline in 2016 compared to 2015, registering 11 percent and 3 percent drops, respectively. In all, Nintendo sold 55.08 million 3DS games during the fiscal year.

Prices start at $299.99 at GameStop and go up to over $600 for the more extensive Nintendo Switch packages.

Over the next financial year, Nintendo expects to hit 10m Switch hardware sales, and 35m software sales.

Nintendo has stated that the boost in profits was largely down to better than expected sales of the Nintendo Switch, which sold over 2.7 million units in its first month on sale. For instance, Nintendo Switch has surpassed the profits of the PlayStation 4 registered during the launch month in Japan.

That's right; Zelda for Switch sold more units than the Switch itself. However, Nintendo said this was "in alignment with our expectations at the start of the fiscal year". Splatoon 2 exemplifies the concept of Nintendo Switch, enabling consumers to play anywhere, anytime, and with anyone, and will bring competition between consumers to new levels of excitement. But the one big thing Nintendo doesn't have their toes in yet that the rest of the gaming world appears to have embraced is virtual reality. Downloads for Fire Emblem were less than one-tenth of that figure, but Fire Emblem earned more than Mario through in-game purchases. Nintendo had a team that was dedicated to approving titles for release, but the bar of entry was set so low that basically anything had a chance of getting on. He pointed out that he likes the Switch as a gamer- but he has to approach it as a developer, where the question of the Switch's architecture versus the other systems (ARM vs x86) comes into question. You can make one just long enough to use for the free trial and buy the console.

Nintendo has also begun to offer games for smartphones, such as its smartphone action game "Super Mario Run", reversing its earlier policy of shunning them. In addition, we will maintain favorable conditions surrounding Nintendo Switch by providing a continuous stream of appealing third-party titles across varying genres.

Thanks to its efforts in mobile, Nintendo's brand has also seen a strong revival, and the company has managed to tap into some of the nostalgia around its past games and consoles. In between absolute gems like Axiom Verge and Shovel Knight, the digital storefront for the 3DS and Wii U is absolutely cluttered with a wide variety of shovelware.

Other reports by VideoGamingPros

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