Nintendo’s recent surge in its first quarter financials for the current fiscal year is a demonstration of what happens when a pair of iconic gaming franchises, The Legend of Zelda and Super Mario Bros., are brought to the forefront of the gaming and entertainment industries.
The company’s performance, which revealed staggering sales and profits, is primarily attributed to the release of both The Legend of Zelda: Tears of the Kingdom and the animated blockbuster Super Mario Bros. Movie.
The Japanese gaming titan amassed an impressive ¥461.3 billion (around $3.2 billion) in net sales during the quarter ending on June 30. This figure marks a 50% increase compared to the same period last year. Furthermore, Nintendo also saw its operating profit experience a substantial rise of 82.4% to ¥185.4 billion (around $1.3 billion). Such record-breaking numbers were last seen in the first quarter of 2020, driven by the release of the popular title, Animal Crossing: New Horizons, and the onset of COVID-19 lockdowns.
As previously mentioned, leading the charge was the latest entry to the Zelda franchise, which sold 18.51 million units in its first quarter alone. The game’s success extended far beyond direct sales. While a large portion of these sales attributed to consumers who had played the preceding entry, The Legend of Zelda: Breath of the Wild, the game also piqued the interest of new fans, leading to a significant boost in sales of both titles and the Switch itself.
Nintendo managed to sell 3.91 million Switch consoles during this quarter, a 13.9% year-on-year increase. This figure fell a bit short of the 5.68 million units sold during Q1 FY21, but remains a testament to the influence of the Zelda franchise. The launch of the special edition Tears of the Kingdom console contributed significantly to these numbers, with the Switch OLED models accounting for 86% of the total sales.
Simultaneously, the Super Mario Bros. Movie broke records and expectations, achieving a staggering $1 billion in revenue at the global box office. This milestone turned the film into a double-edged sword for Nintendo, providing a direct profit and bolstering sales of existing Mario games, leading to a 190% rise in the company’s “mobile and IP-related income” from the previous year. Nintendo reported that the film was viewed by 168.10 million people, marking it as the highest-grossing film based on a video game and the second-highest for an animated feature.
While the success of these flagship franchises is a cause for celebration, Nintendo now faces the challenge of maintaining this momentum. Although the sales of the current generation of the Switch console have remained strong, many believe the hardware is approaching the end of its lifecycle. Speculations have been rife about the release of a Switch successor, with reports suggesting that a new console may hit the market in the latter half of 2024.
To keep their audience engaged, Nintendo has a steady lineup of new titles and add-on content, headlined by the recently-released Pikmin 4 as well as Super Mario Bros. Wonder and Super Mario RPG, which are coming out on October 20 and November 17, respectively.
Additionally, the company plans to release “The Hidden Treasure of Area Zero an add-on content for Pokémon Scarlet and Pokémon Violet.
Despite these promising releases, it remains to be seen if these new offerings can match the stratospheric success of Zelda and Mario. However, the transition period between the current and next generation of consoles, coupled with a leaner release calendar for the rest of the year, will test the company’s ability to maintain the momentum.
Will the beloved gaming giant continue to conquer the industry, or is it set for a slowdown? The coming months will tell us the answer.
