Nintendo held its financial results briefing this week, with President Shuntaro Furukawa addressing inquiries regarding the company's plans. Read on to learn more about how Nintendo plans to move forward in 2024.
Nintendo Outlines Plans Going Into 2024
Switch Remains as Nintendo's Main Business
Nintendo stated during financial results briefing Q&A session this week that it will offer consumers "unique propositions" to stand out in an increasingly competitive marketplace, as reported by VGC. Nintendo President Shuntaro Furukawa addressed questions regarding the risks the company faces as it navigates the evolving landscape of the gaming industry.
Furukawa acknowledged the business challenges associated with the generational transition of gaming console platforms. "We have experienced significant challenges following successful platforms multiple times, so we never consider our current situation to be totally secure," said Furukawa, according to VGC.
The Nintendo president further said that their business always faces great competition. He added, "From a broader entertainment perspective, not only video games but also various forms of leisure are competitors in this industry. In this environment, there’s an increasing need, more than ever before, to continue offering unique propositions to become a brand that customers choose."
Image from Nintendo
Despite the monumental success of the Nintendo Switch, which has surpassed 139 million unit sales as of December 2023 since its launch in March 2017, Nintendo said it will remain vigilant. "Unit sales of Nintendo Switch hardware and software both decreased year-on-year," Nintendo noted in its financial results explanatory material.
However, Switch net sales increased by 4.7%, surpassing 1.3B Yen (approximately $8.76M USD), due in part to the "continued depreciation of the yen in foreign exchange markets, the increase in proportion of hardware sales accounted for by Nintendo Switch – OLED Model, which has a higher unit price, and the growth in sales of add-on content not counted in software unit sales."
The current Switch console will be Nintendo’s main business heading into 2024, Furukawa said on a conference call after the earnings report this week, according to Bloomberg. In Japan, Nintendo Switch games dominated physical game sales in 2023, with sales reaching 403.8B Yen (approximately $2.7 billion).
With the focus on Switch this year, Nintendo anticipates selling 15.5 million units in the fiscal year, with more games for the console in the pipeline until 2025.
A potential Switch successor in the form of a "Switch 2" has long been speculated by the industry, however, Furukawa declined to comment beyond saying that Nintendo is always researching new hardware and software.
Nintendo Continues to Expand IP
Image from Nintendo
Likewise, as noted in Nintendo's financial results, overall sales for Nintendo's mobile and IP-related business increased by 93.4% year-on-year to 75.2B Yen (approximately $506M USD), "bolstered by movie-related sales and an increase in royalty income."
Nintendo’s foray into cinema with projects like The Super Mario Bros. Movie, which reached $700M sales as of June last year, contributed to its soaring success. It will be followed by a movie adaptation of The Legend of Zelda, as Nintendo continues to expand its IP and build on the success of its games. With its growing line-up of movie adaptations, an "Avengers-style" Super Smash Bros movie was reportedly pitched to Nintendo last December.
"Therefore, it’s crucial to continue efforts to make Nintendo feel close, even outside of the dedicated gaming console, increase customers who support Nintendo IP over the long term, and maintain connections with our customers," Furukawa said during the financial results briefing Q&A session, as reported by VGC.
Source:
VGC: Nintendo says it will overcome challenges of generational transition with ‘unique propositions’
Bloomberg: Nintendo Lifts Profit and Switch Outlook After Beating Estimates
Nintendo: Financial Results Explanatory Material 3rd Quarter of Fiscal Year Ending March 2024
Nintendo: Dedicated Video Games Sales Units
