Nintendo Launches New System as Digital Revenue Faces Challenges

This overview highlights recent financial updates from Nintendo, focusing on the performance of their digital revenue alongside the introduction of new hardware and software offerings.

In its initial quarterly report for fiscal year 2026, Nintendo showcased remarkable figures following the launch of its next-generation system and its primary game release tied to the console bundle. Between June 5 and June 30, 5.63 million units were moved, many of which were download codes included with the console. Although this approach to increasing digital game sales appeared promising, the overall picture is more nuanced.

Supplementary data provided to investors indicates that online sales fell by 13.5 percent compared to the corresponding quarter the previous year. With digital sales still representing 59.3 percent of total revenue, this change has not significantly unsettled the investment community. It is also noteworthy that sales figures for the bundled game are accounted for within the hardware revenue, which may further influence this metric.

The observed decline in digital revenue is mainly Owing to the significant decline in the yen's value, in tandem with… with a drop in sales of downloadable additional content. Overall, digital revenue for the period from April to June 2026 reached 69.8 billion yen amounting to over 400 million euros.

Key points from the report include:

• Strong initial launch figures for the new system and game
• A 13.5 percent year-on-year decline in digital sales
• Digital sales constituting about 59.3 percent of the total revenue
• The impact of currency depreciation and reduced downloadable content sales