HomeTechnologySuper Mario movie and...

Super Mario movie and Zelda game breathe fresh life into Switch as Nintendo posts a 52% profit surge


  • Nintendo reported revenue for the June quarter of 461.34 billion yen ($3.2 billion), rising 50% year-on-year.
  • Nintendo saw a boost from the “The Super Mario Bros. Movie,” based on the company’s best-known characters, which has generated more than $1 billion at the box office since its April release.
  • The Japanese gaming giant also released a highly-anticipated game called “The Legend of Zelda: Tears of the Kingdom” in May, which it said was the fastest selling title in the history of the series.

Nintendo reported a surge in revenue and operating profit for the June quarter boosted by the success of the “Super Mario Bros. Movie” and the the popularity of its latest Zelda game for the Switch console.

Here’s how Nintendo did in its fiscal first quarter versus Refinitiv estimates:

  • Revenue: 461.34 billion yen ($3.2 billion) versus 395.40 billion yen expected.
  • Net profit: 181.02 billion yen versus 109.91 billion yen expected.

Nintendo’s revenue 50% from a year ago while net profit surged by 52%. Operating profit came in at 185.44 billion yen, ahead of expectations, jumping 82.4% year-on-year.

Prior to the fiscal first quarter, Nintendo had seen two straight quarters of revenue and

Nintendo saw a boost from the “The Super Mario Bros. Movie,” based on the company’s best-known characters, which has generated more than $1 billion at the box office since its April release. The film was produced by Universal Studios.

The Japanese gaming giant also released a highly-anticipated game called “The Legend of Zelda: Tears of the Kingdom” in May, which it said was the fastest selling title in the history of the series.

“In the first quarter of this fiscal year, both sales and profits were notably large for a first quarter mainly due to the concurrent releases of ‘The Super Mario Bros. Movie’ and ‘The Legend of Zelda: Tears of the Kingdom’, and we made steady progress toward our full-year earnings forecast,” Nintendo said in an earnings release.

Nintendo previously forecasted its revenue for the current fiscal year, which ends in March 2024, at 1.45 trillion yen and 340 billion yen of profit.

Nintendo also previously forecast sales of 15 million units of its flagships Switch games console series for its current fiscal year ending March 2024. That compares with just under 18 million units sold in the previous fiscal year.

The company said that it sold 3.91 million Switch consoles in the June quarter, up by 13.9% on the year.

Chris Pratt and Charlie Day voice Mario and Luigi in Universal and Illumination’s “The Super Mario Bros. Movie.”

Universal

The Switch is now a more than six-year old console, with investors fearing buyers’ interest may have peaked — but the rise in sales may help to allay some of those concerns. The quarter highlights Nintendo’s ability to continue to generate revenue from its 116 million of annual playing users and perhaps extend the longevity of the Switch.

Over the life of the popular console, Nintendo has tried to refresh it with a handheld version and with one with an improved screen. But speculation continues on whether Nintendo will release a new version to breathe fresh life into the device and the company.

Analysts at Jefferies said in a note in April that the company will likely release a refreshed version of the Switch in this current fiscal year, or the next such period, which starts in April 2024. But the timing will depend on how well Nintendo’s overall financial performance is, and whether the company will need a new Switch to help boost sales over this year or the next.

The Mario movie benefitted various parts of Nintendo’s business, creating a halo effect that drove users to the Japanese gaming giant’s products. Nintendo said the film supported sales of games featuring the famous Italian plumber, including Mario Kart 8 Deluxe.

It also helped Nintendo rake in 31.8 billion Japanese yen in June quarterly revenue for its mobile and intellectual property-related business — a rise of 190% year-on-year.

“The Legend of Zelda: Tears of the Kingdom” was another big factor in Nintendo’s bumper quarter. The latest game in the Zelda franchise sold 18.51 million units in the quarter.

Mario and Zelda pushed Nintendo to post a 26% year-on-year rise in software sales to 52.21 million units.

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.



Source link

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

Read Now

The 5 best non-Shohei Ohtani moves of the MLB offseason — and 4 that should happen before Opening Day

Baseball has seen a little bit of everything this offseason. Following the Texas Rangers’ World Series victory, we had a stretch of relative quiet, with the occasional transaction sprinkled in every few weeks.That was in part because we were waiting for arguably the most anticipated signing...

Elden Ring DLC Gameplay Reveal Trailer Confirmed for Wednesday – IGN

Our first look at Elden Ring: Shadow of the Erdtree will arrive in the form of a trailer tomorrow morning, FromSoftware and Bandai Namco have announced.The game’s official X/Twitter account revealed the news in a social media post, promising to deliver a first look at the...

Rays Sign Amed Rosario To One-Year Deal

5:10pm: The Rays have now made it official, announcing that they have signed Rosario. To open a roster spot, Rasmussen was placed on the 60-day IL. 2:45pm: The Rays and infielder Amed Rosario are in agreement on a one-year, $1.5MM deal, per Jeff Passan of ESPN. The...

Amazon to join Dow Jones Industrial Average, reflecting ‘evolving nature of American economy’

Last Updated: Feb. 20, 2024 at 5:52 p.m. ET First Published: Feb. 20, 2024 at 5:32 p.m. ET Amazon.com Inc. is set to join the Dow Jones Industrial Average in a week, a move meant to reflect...

Hunter Biden’s lawyer says informant charged with lying ‘infected’ the case

Hunter Biden’s lawyers argued in a court filing Tuesday that the indictment last week of an FBI informant for allegedly lying about the first family has tainted the federal charges against the president’s son.The filing in Delaware federal court shows how Biden’s lawyers are moving quickly...

‘Porky’s’ star Tony Ganios dead at 64 after his ‘heart stopped’

Celebrities By Erin Keller Published Feb. 20, 2024, 5:12 p.m. ET Tony Ganios, star of the sex comedy “Porky’s” and numerous other cult classic films, has reportedly died. He was 64. TMZ broke the news Tuesday after an X account from someone claiming to be Ganios’ longtime fiancée, Amanda...

Biotech Crashes 74% After Unexpected Liver Failure Sidelines Two Tests

Biotech stock Rapt Therapeutics (RAPT) plummeted to a record low Tuesday after the Food and Drug Administration put two of its clinical studies on hold. X The company is testing a drug called zelnecirnon as a treatment for eczema and asthma. But in a midstage test, one eczema...

Gemini on your phone but Google Assistant in your ears

In testing the Gemini app over the past week, my usage of Google Assistant through Pixel Buds Pro has skyrocketed, and I’m actually liking the balance. 9to5Google has a rebooted newsletter that highlights the biggest Google stories with added commentary and other tidbits. Sign up to get...

CFP board approves move to 5+7 model for 2024

The College Football Playoff Board of Managers on Tuesday voted unanimously to revise the format of the 12-team event to include the five highest-ranked conference champions and seven at-large bids, finalizing an adjustment from the original “6+6” model. The board, which is made up of 11 chancellors...

Helldivers 2 Patch 1.000.10 Takes Aim at Matchmaking, PC Black Screen, and Preps for Increased Server Capacity – IGN

Helldivers 2 Patch 1.000.10 is starting to roll out on Steam and PS5, which developer Arrowhead hopes will address some of the numerous issues that fans have encountered over the past week. Chief among them are issues with matchmaking and server issues, as well as the...

Ed Kelce teases whether son Travis will travel to Australia to see Taylor Swift perform

Music By Sydney Champagne Published Feb. 20, 2024, 2:28 p.m. ET Travis Kelce’s dad still doesn’t know if his son will be traveling to Sydney, Australia to join Taylor Swift on her Eras Tour concert. When asked about any upcoming travel plans, Ed Kelce told the Sydney Herald Square...