Nintendo tightens its belt in its July-September quarterly earnings report

Profits have been frozen and the year-on-year fall is up to 56%, and users and shareholders are wondering when it will make the announcement.

As we have known for weeks, Nintendo today (5 November) released its earnings report for the second quarter of the current fiscal year, which ends on 31 March 2025. This new report covers updates on the state of the Kyoto-based company's finances between July 1 and September 30, and follows more or less in line with the company's expectations, in the so-called "banner year" of the current Nintendo Switch. Should Nintendo shareholders be worried? No. At least not at the moment, but they're not entirely happy either.

Nintendo has revised down its expectations for total console and game sales. It appears to be abandoning its goal of surpassing PlayStation 2 as the best-selling console in history, down from 13.5 million consoles sold to 12.5 million. In games, there is also a similar moderation, with an estimated 5 million fewer units of software. There were 31% fewer consoles sold compared to the same period last year (4.72 million), and 27.6 fewer games (70.28 million total units). Operating profit for the first half of FY2025 is 56% lower than the same period in FY2024.

So how can it be that there are no riots in the streets from Nintendo investors? Well, mainly because the company has had a policy of anticipating such contingencies for years. Among other things, they are going to maintain the same dividend (129 yen per share), as well as ordinary profit and net profit forecast until March 2025.

There is one important point that is not mentioned in the report, and that is about Nintendo's successor. Interestingly, yesterday the media published our reviews of Mario & Luigi: Brothership, at an unusual time and date, leaving us to wonder whether the company's communication machine is leaving "room" for a major announcement. Will today be the day they announce Nintendo Switch 2?