• News

Tough Zelda & Mario Movie comparisons push Nintendo (NTDOY) Q1 2025 operating profit down 70.6%

After an amazing FY 2024 with the releases of TOTK and The Super Mario Bros. Movie, tough comparisons have caused a serious year-over-year drop in sales and operating profit at Nintendo.

Asif Khan

August 2, 2024 12:55 AM

2

Nintendo is out with its Q1 2025 earnings results and things are looking pretty tough for the Big N. While the company did not alter its full year forecast, it did report a drop in software and hardware sales with operating down over 70% from Q1 2024. The impact of shipping The Legend of Zelda: Tears of the Kingdom and releasing The Super Mario Bros. Movie in the same quarter is truly being felt a year later.

Nintendo did not alter their full year forecast, despite the eye-popping 70.6% drop in profit from the prior year. The company is truly a victim of its own success last year, and it appears that this will not be a year full of blockbusters as the Switch ends its final year. Mobile and IP related sales also faced a tough headwind with no major movie releasing. The Super Mario Bros. Movie effect cuts both ways for long-term investors of Nintendo.

FY 2025 may end up being a nice resetting of expectations ahead of the Switch 2 launch. There was no mention of the Switch successor in today's report, so we will all have to wait and see what's next for the Big N some time between now and March 31, 2025.

This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

Full Disclosure:

At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:

Long Nintendo via NTDOY shares

Asif Khan

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.