>The gross profit margin declined by 29.5 points to 32.3%, reflecting the fact that proportion of hardware sales became higher with the launch of Nintendo Switch 2, and Nintendo Switch 2, which has a lower profit margin than Nintendo Switch, accounted for a higher proportion of those hardware sales.

>>717052825 (OP)
@grok is this true?

>>717053003
>>717052825 (OP) lifted straight from their new financial report

mmmm, sure

>>717053647
>They lost more money on 3DS than Wii U

Lol

ROLFMAO

>>717052825 (OP)
Don't worry, Nintendo will shove their nintendick further into their consumers to make up for it.

>>717053410
Link?

>>717053647
OP BTFO

>>717053647
How was 2023 so good for them? Was it because of the mario movie?

>>717054639
TOTK sold twenty million copies at $70 each that year

>>717053647
>2020 suddenly explodes
Covid buying?

>>717054123

717052825
nigger ape OP sucking gorrilla dicks
>profit margin is down because hardware sells so much
>as more hardware sells software sales will outpace it
>thus the problem fixes itself all while Nintendo still makes record profits
what a pile of nothing.
plant herbs

>>717054123
here you go, king
https://www.nintendo.co.jp/ir/pdf/2025/250801_2e.pdf
also, tendies losing their mind over here kek

>>717055968
>Fiscal Year 2026
>we are in middle of 2025
what the fuck? Is this how all businesses think?

>>717052825 (OP)
Even worse, Operating profit margin declined by 12.2 pt to only 9.9% and net profit margin declined by 16.0 pt to only 16.8%.
It is truly grim for Nintendo.

>>717052825 (OP)
Tendies will defend it to the death

>>717052825 (OP)
>The current situation is really bad for Nintendo. Although they are able to sell a ton of Switch 2 and its software (red bar), their profits aren't increasing at all (pink, green, blue bars).
>As a result, their profit margins (green and purple lines) have taken a nosedive.

>>717054897
That and animal crossing coming out during it. Literal perfect timing.

>>717056485
>Operating profit
>Ordinary profit
>Net profit
I'm too retarded to understand the difference even after googling it.

>>717052825 (OP)
>Releasing at an inflated price with nearly no games at launch, no announced long-term plans whatsoever and banking almost entirely on backwards compatibility.
Switch 2 is just the same initial fuckup as the 3DS.

>OH MY GOD WE'RE STILL MAKING MONEY BUT NOT AS MUCH AS BEFORE WHY ISN'T GROWTH INFINITE

>>717056670
>Unlabelled graph
>millions instead of billions
>doesn't feature or correlate with anything in the pdf.
You really are desperate to start making up your own figures without understanding basic principles of making graphs

>>717056893
Tell that to Nintendo

>>717056987
top stuff, can you link the damn thing

>>717057024
https://www.nintendo.co.jp/ir/en/finance/highlight/index.html

>>717056194
Fiscal years don't have to align with calendar years. It's just a 12 month period that they can use to budget properly for the business' environment, and that's what they use to report their finances as well. With regards to nintendo, the switch 2 will make up a majority of the 2026 fiscal year since their fiscal year ends in March instead of having half the year lacking information about it.

>>717052825 (OP)
theres all the marketing which isnt free and also the fact that the real money is made by selling 70-100 dollar games all the tendies cant resist buying

>>717056889
Clueless investors are a plague on the industry.

Great, now include all the information next time instead of being a stupid cunt

>>717056783
>Operating profit: profit from daily operations (hardware/software) minus cost to make the goods (hardware parts, cartridge costs etc)
>Ordinary profit: Operating profit minus operational costs (lighting, plumbing, office maintenance)
>Net profit: Ordinary profit minus interest and taxes

>spends big bucks on a thing that'll make them profit long-term
>the year when they released that thing the company is in red, as you do if you're going for the long-term
I'm not a tendie but isn't that how businesses work?

>>717052825 (OP)
Sounds like Nintendo needs to raise the price of Switch 2.

>>717057192
Sounds dumb. Why do they list everything as "profits"? Why not just
>gross
>cost
>cost
>cost
>net
??? Instead I have to do reverse math on each thing to figure out the cost

>>717057296
It's not worth dwelling on. OP is looking for some way to twist anything from their financial report into a personal win whilst barely understanding how the numbers work
Don't expect anything more than pointing out random graphs or whatever page has a smaller number or reduced percentage compared to the previous year and then never actually explaining how one of the strongest companies in the industry is about to go bankrupt.

>>717057296
Yeah. Anytime a business takes on a risk that reduces profits short term because you're putting money into something that isn't guaranteed to give a return. Long term it can (and usually if the business is smart) produce better results than if you never took it on, but the short term profits will always take a hit. A decent example is if a company takes a loan out, even if it's for something internal which they have projected to be possible to pay off within the amortization schedule, the stock price will take a hit because they just increased their liability.

>>717052825 (OP)
>losing money
>every chart posted shows they're making a profit

>>717052825 (OP)
Back in less greedy times, Nintendo was happy just to make a profit on hardware at all since nobody did
Not to mention that $80 games will make them money hand over fist

>>717057897
They are barely making more money than 2024 even though they just had the biggest console laujnch of all time

>>717053647
Nintendo WON

>>717052825 (OP)
They should have had a new Kid Icarus and Punch-Out ready at launch.

>>717057975
Yeah that's expected because of a combination of tariffs, the already basically-as-low-as-the-price-can-go Switch 2 and the fact that they just launched a fucking console with a basically unused memory format.
Manufacturing will get cheaper, the Switch backcatalog still exists and the Switch 2 catalog will expand over time with a bunch of new titles going into the second half of the fiscal year, and maybe saner heads will cool the political situation. Right now they're only limited by how many Switch 2s they can make, and every Switch 2 owner out there is one that'll buy Switch 2 games down the line.

>>717052825 (OP)
>Switch 2 is losing Big N money
What do black people have to do with this?

>>717057685
because Nintendo took such a massive "risk" with the Switch 2

>>717058713
It's not a risky long-term plan (as they are just doing the same thing with Switch), but long-term plan should still give you a red in the first year.
These consoles are supposed to make you money from people buying games and third-party giving you a cut for letting them use your platform, not just pure profit from people buying consoles.
For the whole picture to be profitable they'd need profit margins from consoles sales too sure (they can't give them away for free), but that's obviously not going to be their only source of main income.

>>717059362
switch 1 launch was pretty dry as well apart from botw

>>717056194
The newest fiscal year starts on April 1st. So Fiscal Year of 2025 ended on March 31st.

>>717059670
How the hell did Switch 1 keep momentum through 2017 from March with BotW to October when Mario Odyssey released?

>>717060158
it didnt really
almost all consoles launches are slow and end with a second wind where its actually worth getting the console

>>717052825 (OP)
You should post this on /biz/ so they can make fun of you.

>>717057975
>They are barely making more money
So they're not losing money?

OP does not understand how profit margins work

>>717059670
>explains how these consoles are about long-term profit from third party titles
>still talking about launch and first-party titles
Do you even have a brain cell? Why would they emulate Switch again if they were ""dry"" too?

>>717060310
All they do there is talk about playing hot potato with crypto.

>>717060158
Mario Kart 8 Deluxe released a month after BOTW, in April. Then Splatoon 2 launched on July 21st.

>>717054639
2020-2023 is the covid lockdown period

>>717060158
By having the most insane launch year library of all time.
Like >>717062706 pointed out, the BOTW/MK8D/Splatoon 2 triple combo basically gave it unstoppable momentum. That was 3 of Nintendo's A-list out the gate, followed up by a 3D Mario in October, Smash Ultimate just a year away. And mixed in were projects catering to more diverse tastes. ARMS, a Fire Emblem game that defied the odds of launching next to a 3D Mario, and Xenoblade Chronicles 2.
Its last missing A-lister would have to wait until 2020, but that probably had the most serendipitous timing in history, like the inverse of Seth MacFarlane missing a flight that ended up being one of the planes that crashed into the World Trade Center.

Right now Switch 2 in the immediate shortterm is banking on people having the desire to make the jump early to have Pokemon Z-A be playable and not look like shit.

>>717057170
So basically, things are more expensive but Nintendo isn't making their products more expensive to avoid eating the new costs. Doesn't seem that bad given this is the midpoint of the fiscal year and the Switch 2 is doing this well with only two games right now.

>>717063002
>the most insane launch year library of all time.
It's like 90% ports don't be ridiculous

>>717063196
this kek
I remember the Switch releasing and all my cattlefriends immediately buying into it and I remember thinking to myself: "wow, there isn't a single game on here that I couldn't play on WiiU or Vita". Waited until Odyssey and was worth the wait. The Switch 2 launch was arguably better. At least there were true exclusives available and now we have Bananza.

wow, the new thing selling more than the old thing? wtf, nintendo is finished.

>>717052825 (OP)
false alarm everyone

>>717053647
>2025 twice as profitable as 2017
damn