Nintendo's Q1-Q2 performance was so strong that the company has upwardly revised its hardware, software, net sales, and total profit forecast by up to 51%.
Nintendo's Fiscal Year Q1-Q2 2021 earnings saw all major metrics skyrocket to high levels. Throughout April - September 2020, Nintendo made $2.01 billion in net profit (213.1 billion yen) on $7.8 billion (769.5 billion yen) in net sales (+73% YoY).
Operating profit was likewise up triple percentage points of 209% YoY to $2.75 billion (291.4 billion yen). This spike was driven by COVID-19 lockdown spending surges on hardware and digital software.
These stellar results have caused Nintendo to significantly raise their earnings forecast for FY2021. Nintendo now expects to sell 24 million Switch consoles in FY2021, up 5 million units from the previous 19 million sales target.
This target would bring total Switch sales to 79.77 million worldwide and beat the 3DS' lifetime sales. Nintendo moved 6.86 million Switch consoles in Q2--its best Q2 ever for Switch--and H1'21's hardware sales are the highest point since 2017.
Software has been boosted to 170 million units from the previous 130 million units, showing Nintendo has strong confidence COVID-19 lockdown spending trends will continue throughout the year. Both software and hardware are expected to beat FY20's sales.
Here's a quick breakdown on Nintendo's revised targets and a graph showing how FY2021 will compare to other fiscal years:
- Net sales - From 1.2 trillion yen to 1.5 trillion yen ($14.2 billion), up 16%
- Net profit - 300 billion yen ($2.84 billion), up 50%
- Operating profit - 450 billion yen ($4.26 billion), up 51%
More on Nintendo's Fiscal Year Q2 2021 performance: