Regarding the Nintendo Switch business during the first quarter (April through June 2022) of this fiscal year, Nintendo Switch Sports (released in April) achieved sales of 4.84 million units, and Mario Strikers: Battle League (released in June) got off to good start selling 1.91 million units. In addition, stable sales continued for titles released in previous fiscal years. For example, Kirby and the Forgotten Land performed well with sales of 1.88 million units (for cumulative sales of 4.53 million units), and Mario Kart 8 Deluxe sold 1.48 million units (for cumulative sales of 46.82 million units). A total of 4 titles sold over one million units during this period. As a result of such factors, hardware sales for the quarter totaled 3.43 million units, and software sales totaled 41.41 million units. However, due to the effects of supply shortages in semiconductors and other components among other factors, hardware sales were down 22.9% year-on-year, and software sales were down 8.6% year-on-year. Turning to our digital business for the dedicated video game platform, sales were strong for Nintendo Switch downloadable versions of packaged software, and Nintendo Switch Online sales also increased. In addition, sales of add-on content rose not only for Nintendo titles but also for titles from other software publishers, helping push digital sales to 88.0 billion yen, up 16.0% year on year. However, income from Nintendo’s mobile games declined by 16.8% on a year-over-year basis, for total sales of 10.9 billion yen. Nintendo hasn’t made any changes to the forecast for the remainder of the fiscal year. With Xenoblade Chronicles 3 just released and a packed Nintendo Switch schedule ahead (Splatoon 3 in September, Bayonetta 3 in October, and Pokémon Scarlet and Pokémon Violet in November), Nintendo likely doesn’t have much to worry about.
