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ActualsActualsActualsActualsActualsActualsForecastForecastForecastForecastForecast
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Nintendo Income Statement (¥ Millions)FY 2017FY 2018FY 2019FY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027
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Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026Mar 2027Notes:
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Currency Rates
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USD/YEN (Average) 112 111 111 109 106 112 130 139 139 139 139
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USD/YEN (EoY) 111 106 111 108 111 122 139 139 139 139 139
Do not have plug-in for live link to fx rate, so input current rate manually. Last updated on 11/27/22
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USD/EUR (Average) 120 130 128 121 124 131 141 145 145 145 145
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USD/EUR (EoY) 120 131 124 119 129 136 145 145 145 145 145
Do not have plug-in for live link to fx rate, so input current rate manually. Last updated on 11/27/22
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Video Game Platform Revenue
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Nintendo Switch Hardware Sales Volume 2.7 15.1 17.0 21.0 28.8 23.1 19.115.311.57.54.5
Management is guiding 19 million Switch hardware units for FY 2023, downgraded from guidance for 21M units at start of FY 2023
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YoY Growth %449.3%12.8%24.0%37.0%-20.0%-17.00%-20.00%-25.00%-35.00%-40.00%
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Other Legacy Hardware Sales Volume 8.0 6.4 2.6 0.7 0.2 - - - - - -
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Total Existing Hardware Sales Volume (million units) 10.8 21.4 19.5 21.7 29.0 23.1 19.1 15.3 11.5 7.5 4.5
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Nintendo Switch Total Installed Base (million units) 2.7 17.8 34.8 55.8 84.6 107.7 126.8 142.1 153.6 161.1 165.5
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Implied ARPU (Yen)34,48230,13030,89434,42038,41339,77039,90039,90039,900
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YoY Growth %-12.6%2.5%11.4%11.6%3.5%0.3%0.0%0.0%
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Implied ARPU (USD)311277291306317318319319319
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YoY Growth %-10.9%5.2%5.2%3.5%0.2%0.3%0.0%0.0%
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Theoretical Volume Weighted ARPU (USD)300271270297306307308308308
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Delta %3.6%2.4%7.7%3.3%3.5%3.5%3.5%3.5%3.5%
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Volume Weighted Yen Depreciation/(Appreciation)-0.2%-2.2%-0.4%3.7%8.1%3.3%0.0%0.0%0.0%
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% Volume Split by Switch Model
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Switch - Standard100%71%70%59%37%32%30%30%30%
Forecast FY2023 based on disclosed Switch model splits for Q1 FY 2023.
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Switch - OLED0%0%0%25%46%50%52%52%52%
Thereafter assume OLED rises to 52%, taking from standard model. Assume Lite stays flattish around 18%
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Switch - Lite0%29%30%16%17%18%18%18%18%
Assume Lite targets a different segment/purpose to Standard and OLED, so OLED should take from Standard not Lite
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Listed Retail Prices (USD)
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Switch - Standard 300 300 300 300 300 300 300 300 300
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Switch - OLED 350 350 350 350 350 350
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Switch - Lite 200 200 200 200 200 200 200 200
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Switch Hardware Sales Volume Split by Region %
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Japan23%25%23%23%23%23%23%23%23%
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Americas41%39%39%38%38%38%38%38%38%
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Europe27%25%25%26%26%26%26%26%26%
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Other10%11%14%13%13%13%13%13%13%
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Total Existing Hardware Revenue (¥ Millions) 673,118 654,670 895,925 793,385 734,905 608,695 458,008 297,705 178,623
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YoY Growth %-2.7%36.9%-11.4%-7.4%-17.2%-24.8%-35.0%-40.0%
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Nintendo Switch Software Sales Volume 5.5 63.5 118.6 168.7 230.9 235.1 211.6179.8152.9122.391.7
Management is guiding 210 million Switch software units for FY 2023
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YoY Growth %1063.2%86.7%42.3%36.8%1.8%-10.00%-15.00%-15.00%-20.00%-25.00%
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Other Legacy Software Sales Volume 73.8 40.8 15.1 6.2 3.8 2.2 1.5 1.0 0.5 - -
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Total Existing Software Sales Volume (million units) 79.2 104.3 133.7 174.9 234.7 237.3 213.1 180.8 153.4 122.3 91.7
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Nintendo Switch Cumulative Attach Rate 2.0x3.9x5.4x6.4x6.9x7.6x8.2x8.5x8.9x9.2x9.5x
The Game Cube achieved a 9.6x attach rate and highest ever attach rate achieved was PS4 at 12.1x - I think Switch will end up somewhere in between
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Implied ARPU (Yen) 3,299 3,078 2,829 2,901 3,119 3,180 3,132 3,101 3,070
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YoY Growth %-6.7%-8.1%2.5%7.5%1.9%-1.5%-1.0%-1.0%
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Implied ARPU (USD)302827262525242424
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YoY Growth %-4.8%-5.7%-3.2%-2.0%-2.0%-1.5%-1.0%-1.0%
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Volume Weighted Yen Depreciation/(Appreciation)-0.3%-2.6%-0.4%4.3%9.5%3.9%0.0%0.0%0.0%
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Switch Software Sales Volume Split by Region %
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Japan18%19%19%18%18%18%18%18%18%
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Americas45%44%44%46%46%46%46%46%46%
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Europe30%30%29%28%28%28%28%28%28%
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Other7%7%7%8%8%8%8%8%8%
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Existing Software Revenue from Packaged Software sold physically and digitally (¥ Millions)
440,990 538,258 664,074 688,336 664,617 574,966 480,294 379,153 281,521
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YoY Growth %22.1%23.4%3.7%-3.4%-13.5%-16.5%-21.1%-25.8%
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% of Total Software Revenue92.0%89.8%82.6%81.4%79.0%75.1%70.7%64.5%56.2%
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Attach rate was 36% as of Sept 2021 (32m members / 90 m switch installed base)
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Nintendo Switch Online Attach Rate (as % of Switch Installed Base)31%31%32%32%34%
Management hasn't disclosed new member numbers but said membership has grown with hardware but that there has also been churn
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Implied NSO Total Members3944495256
To reflect churn and higher installed base, assume 31% attach rate for FY 2023, rising to 34% by FY 2027. For comparison Sony Playstation ecosystem has roughly 43% attach rate today. 34% seems reasonable given I expect v large installed base for Switch
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NSO Blended Annual Membership Fee (Yen)2,6672,9213,0363,0363,0363,036
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YoY Growth %10%4%0%0%0%
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NSO Blended Annual Membership Fee (USD) 24 2424242424
Assume a rough split between NSO Individual, NSO Individual + Extension Pack, and NSO Family
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YoY Growth %0%0%0%0%0%
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Volume Weighted Yen Depreciation/(Appreciation)9.5%3.9%0.0%0.0%0.0%
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Nintendo Switch Online Subscription Revenue114,842133,763149,231156,480170,881
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Software Revenue from DLC (incl. Add-Ons) and Nintendo Switch Online Subscriptions
38,49161,230140,049157,505176,679191,090198,974208,640219,078
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% of which is NSO subscriptions65.0%70.0%75.0%75.0%78.0%
Assume NSO subscriptions are majority of this revenue because Nintendo has begun bundling DLC and Add-On content with NSO subs. I also assume they will build out NSO library. So assume this % grows over time
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YoY Growth %59.1%128.7%12.5%12.2%8.2%4.1%4.9%5.0%
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Total Existing Digital Revenue118,800204,100344,100359,600
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% Total Software Revenue24.8%34.0%42.8%42.5%
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% Total Video Game Platform Revenue10.3%16.3%20.2%21.9%
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Implied Revenue from Physically Packaged Software 360,681 395,388 460,023 486,241
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% Total Software Revenue75.2%66.0%57.2%57.5%
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Implied Revenue from Downloadable Versions of Physically Packaged Software 80,309 142,870 204,051 202,095
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% of Total Digital Revenue67.6%70.0%59.3%56.2%
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% of Total Software Revenue17%24%25%24%
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Implied Revenue from DLC and Nintendo Switch Online38,49161,230140,049157,505
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% of Total Digital Revenue32.4%30.0%40.7%43.8%
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% of Total Software Revenue8%10%17%19%
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Total Existing Software Revenue (¥ Millions) 479,481 599,488 804,123 845,841 841,296766,056679,268587,792500,599
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YoY Growth %25.0%34.1%5.2%-0.5%-8.9%-11.3%-13.5%-14.8%
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Next Gen Console Hardware Volume (million units) - Switch Pro? Switch 2? Something New?
1.69.010.2
Various media reports believe 2024 is possible for a launch or even late 2023. I assume mid 2024
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YoY Growth %449.27%12.76%
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Volume as % of Switch launch volume60%60%60%