Nintendo Earnings Release for the Six-Month Period Ended September 2016

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27 Oct 2016 05:58 PM

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Joined: 18 Jun 2007
Posts: 8046

Title: Nintendo Earnings Release for the Six-Month Period Ended Sep...

A new news article has been posted!

When Nintendo, Niantic and The Pokémon Company announced that they would bring a mainstream Pokémon game to the Apple iOS and Google Android mobile phone market, there was much speculation that this was Nintendo finally caving to public pressure to finally release games on non-Nintendo manufactured systems which would reduce sales and overall profit for Nintendo. The reverse actually came true as Nintendo announced during their October 27th, 2016 Earnings Release for the Six-Month Period Ended September 2016. The release of Pokémon GO in July helped the sales of the Nintendo 3DS and related Pokémon games.

Nintendo also announced that combined Pokémon Omega Ruby and Pokémon Alpha Sapphire sales have reached 13.18 million copies sold worldwide as of September 2016.

U.S. Nintendo 3DS Hardware Sell-Through Trends
	"This graph shows Nintendo 3DS hardware sell-through trends in the U.S. compared with sell-through for the previous period. In the U.S., the previously-released Nintendo 2DS was dropped to an even more affordable price, and promotional activities aimed at children and parents were effective in increasing sales. The release of Pokémon GO on July 6th also led to a major increase in sales of the Nintendo 3DS family systems, where consumers can enjoy past titles in the Pokémon series. The trend here is higher than that for the previous period, and we are maintaining this momentum as we head into the holiday season."

U.S. Nintendo 3DS Hardware Sell-Through Trends

"This graph shows Nintendo 3DS hardware sell-through trends in the U.S. compared with sell-through for the previous period. In the U.S., the previously-released Nintendo 2DS was dropped to an even more affordable price, and promotional activities aimed at children and parents were effective in increasing sales. The release of Pokémon GO on July 6th also led to a major increase in sales of the Nintendo 3DS family systems, where consumers can enjoy past titles in the Pokémon series. The trend here is higher than that for the previous period, and we are maintaining this momentum as we head into the holiday season."

U.S. Nintendo 3DS First-Party Software Sell-Through Trends
	"This graph shows Nintendo 3DS first-party software in the U.S. compared with sell-through for the previous period. In the U.S., promotional activities aimed at children and parents were effective in increasing sales, and there was solid growth in sales for evergreen titles and Nintendo Selects games such as The Legend of Zelda: Ocarina of Time 3D. The release of Pokémon GO also provided a bump in sales for the Pokémon series, and as a result, sales here have also surpassed those in the previous period."

U.S. Nintendo 3DS First-Party Software Sell-Through Trends

"This graph shows Nintendo 3DS first-party software in the U.S. compared with sell-through for the previous period. In the U.S., promotional activities aimed at children and parents were effective in increasing sales, and there was solid growth in sales for evergreen titles and Nintendo Selects games such as The Legend of Zelda: Ocarina of Time 3D. The release of Pokémon GO also provided a bump in sales for the Pokémon series, and as a result, sales here have also surpassed those in the previous period."

U.S. Nintendo 3DS First-Party Software Sell-Through Trends
	"This graph shows Nintendo 3DS hardware sell-through trends in Europe compared with sell-through for the previous period. As in the U.S., the release of Pokémon GO across Europe starting in July spurred momentum for hardware sales."

Europe Nintendo 3DS Hardware Sell-Through Trends
	"This graph shows Nintendo 3DS hardware sell-through trends in Europe compared with sell-through for the previous period. As in the U.S., the release of Pokémon GO across Europe starting in July spurred momentum for hardware sales."

Europe Nintendo 3DS First-Party Software Sell-Through Trends
	"This graph shows Nintendo 3DS first-party software sell-through trends in Europe compared with sell- through for the previous period. In the European market, we again see the boost in Pokémon series titles in July, but this is supported by new titles such as Kirby: Planet Robobot, Fire Emblem Fates Birthright/Conquest, and Monster Hunter Generations, for which Nintendo provided distribution in Europe. Evergreen titles and Nintendo Selects titles also sold well. Overall software sales are vigorous, outpacing the previous period. "

Europe Nintendo 3DS First-Party Software Sell-Through Trends

"This graph shows Nintendo 3DS first-party software sell-through trends in Europe compared with sell- through for the previous period. In the European market, we again see the boost in Pokémon series titles in July, but this is supported by new titles such as Kirby: Planet Robobot, Fire Emblem Fates Birthright/Conquest, and Monster Hunter Generations, for which Nintendo provided distribution in Europe. Evergreen titles and Nintendo Selects titles also sold well. Overall software sales are vigorous, outpacing the previous period. "

Pokémon GO increased Virtual Console Sales
	"Over the summer, the smart device application Pokémon GO became a major hit and a social phenomenon. This has sparked increased interest in Pokémon-related software. Previous entries in the Pokémon series playable on the Nintendo 3DS system were Pokémon X and Pokémon Y in 2013 and Pokémon Omega Ruby and Pokémon Alpha Sapphire in 2014. We also released the original games in this series, Pokémon Red, Pokémon Green, Pokémon Blue and Pokémon Pikachu, as downloadable Virtual Console titles in February this year. These Pokémon series titles have seen an increase in sales despite having been on the market for some time already. "

Pokémon GO increased Virtual Console Sales

"Over the summer, the smart device application Pokémon GO became a major hit and a social phenomenon. This has sparked increased interest in Pokémon-related software. Previous entries in the Pokémon series playable on the Nintendo 3DS system were Pokémon X and Pokémon Y in 2013 and Pokémon Omega Ruby and Pokémon Alpha Sapphire in 2014. We also released the original games in this series, Pokémon Red, Pokémon Green, Pokémon Blue and Pokémon Pikachu, as downloadable Virtual Console titles in February this year. These Pokémon series titles have seen an increase in sales despite having been on the market for some time already. "


Pokémon Series Sell-Through Trends	"This graph shows the month-on-month sales of titles in the Pokémon series in Japan, the U.S. and Europe, as mentioned earlier in the presentation. As you can see, the release of Pokémon GO in July led to a major upsurge in sales, particularly for the U.S. and European markets. We can clearly see that the release of Pokémon GO has raised interest in Pokémon and contributed to a resurgence of sales for previously-released Pokémon titles."

Pokémon Series Sell-Through Trends

"This graph shows the month-on-month sales of titles in the Pokémon series in Japan, the U.S. and Europe, as mentioned earlier in the presentation. As you can see, the release of Pokémon GO in July led to a major upsurge in sales, particularly for the U.S. and European markets. We can clearly see that the release of Pokémon GO has raised interest in Pokémon and contributed to a resurgence of sales for previously-released Pokémon titles."

Nintendo 3DS Hardware Sell-Through Trends
	"Similarly, this graph shows the month-on-month sales for Nintendo 3DS family systems. You can see that there is a peak in July for hardware as well, following the release of Pokémon GO."

Pokémon GO Plus
	"We launched the Pokémon GO Plus accessory on September 16th to provide a more comfortable play experience for Pokémon GO. Demand far exceeded our expectations and production has not caught up, leading to product shortages. We apologize to the consumers and distributors affected by this. We are planning to expand production as needed, and will continue to produce and ship additional units."

Sources: https://www.nintendo.co.jp/ir/pdf/2016/161027_2e.pdf and https://www.nintendo.co.jp/ir/pdf/2016/161026_2e.pdf

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