Published , by Asif Khan
Published , by Asif Khan
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