 we're gonna move on to our third topic because Nintendo finally last week because we're recording the week it happened but for you guys this last week had their end of fiscal year financial report and meeting with investors and Q&A session and yada yada yada so what I have here is a giant thing going off of everything that happened and I'm gonna have era kind of list off the main bullet point stuff here and then pause if there's anything that surprises you and you want to talk about well let's let's start off right away with the first one we might as well talk about because it's a Legend of Zelda Breath of the Wild record sales of recorded recorded sale sorry my bad I can't read I don't know why you haven't me this of 2.76 million units now you said this was just for now before you say anything move down three bullet points and read that yes yes the switch hardware sells 2.74 million so Breath of the Wild on switch outsold the number of the Nintendo switch yes now we've we've mentioned this happened in the United States before but now this is worldwide this is all together yeah so this is now actually really confirming that you know this is yeah yeah here's a weird thing here's a weird thing so Nintendo it said that 2.76 million units of breath of the wild soul for switch Nintendo switch sold 2.74 million units but the president and CEO Nintendo Mr. Kimishima came out and said that the breath of the wild has a 90% attach rate on Nintendo switch which doesn't make sense if it's sold more copies yeah no Nintendo switches exist now that doesn't mean that everyone that owns a switch owns breath of the wild right you know right there's people who own multiple copies but the point is is that attach rate is basically based on unit sales versus consoles in the market right and unit sales are more than the console in the market so that's like a hundred percent attach rate 102% probably so I think what he meant to say is 90% of customers who buy a switch also buy a copy of the wild instead of the attach rate but anyways you know that could have gotten lost in translation yeah so what does this tell you well um considering that the uh that uh I think the switch came out in the middle of this whatever where were they measuring from again April of last year through March 31st okay yeah so never mind so the switch came out at the end of this financial fifth year less than a month in the market yeah and that already has 2.76 million units sold and then March yeah not a holiday period yeah that's crazy and then you look at the total oh wait oh okay wait all of breath the wild okay is okay never mind that that I was looking at something I thought it was well explain what you were looking at yeah I saw that the Wii U version sold there Wii U sold I thought it was the Wii U sold 3.8 yeah including the Wii U there has been 3.84 million breath of the wild copy sold okay I thought it was just saying there was three point so so to give you an idea that's like 1.08 million units sold on the Wii U for breath of the wild which I'd say is shockingly small but again there's not a lot of Wii use on the market in the first place you can't buy Wii use new anymore right they're discontinued well actually surprisingly that's I mean that's I guess it's a little bit under half almost a third of the switch sales which is sure not terrible um what this tells me it is something I am afraid about with the switch because 2.74 million in less than a month is insane the PlayStation 4 when it launched during the holiday period from when it launched to a month later in December only sold 2 million units and this outpaced that massively so what scares me though is that 2.76 you know the 90% tax rate the Nintendo claims which doesn't add up math yes yes is that my main fear is that this is just a Zelda system right now and right now now Mario Kart 8 just released for people like it releases for us tomorrow that after we recorded this but it really is already out in the market and that's probably do fantastic they noted somewhere that like pre-sales for my credit deluxe have been really good I haven't I haven't talked to my local game side yeah they usually tell me like how what the buzzes for it like maybe there's even been that launch and I just don't know about it but it's interesting to me because when you have that kind of a tax rate it means that one game is selling your system and obviously you keep hitting it with sellers but it kind of makes it be like okay once that one game is done is the switch gonna keep selling now I think one difference between this because like Nintendo is always said it takes one game to become a system seller and they've been basically kind of right about it in the past yeah it was it was brain age and Nintendo it was a two-game combo for the DS that made that blow up yep for we it was basically just we sports I mean yeah it's why the princess help bring some hardcore faithful over while we sports is really why that thing blew up and then they obviously when they followed up you just dance come off a movie soft which was really popular still go it's not ongoing series are still popular yet you know we fit came out and that was a big phenomenon so I I wonder I worry if switch is just going to end up being that Zelda system that nobody buys between now and tomorrow comes out Mario Odyssey it is a fear of mine it might like how much further is both of I gonna like it's hard to look at switches sold out right every unit they could get out on the shelves so like that's just through March if you include this month which we're almost at the end of April it I mean it could be twice that number right now we can break in at six million switching right at six million breath of the wild copy sold right we don't know right because they didn't know they're not divulging numbers for this current month obviously because they're just talking about last year I don't know I'm these numbers are fantastic let's put it that way maybe to put this in some perspective I don't know if it's listed on there because this is kind of reported in Q&A session one to switch is sold like almost they said almost one million copies worldwide I know it says on here just generating buzz yeah which is the second best selling switch game apparently and so I think it was sniffer clips had had 340,000 downloads and that's one of the top like each shop only games and that Super Bomberman are had over 500,000 copies sold which they're kind of using those games prop enough as hey look third parties are having success no million sellers but again sniffer clips at Super Bomberman aren't really games I would expect to sell millions of copies I suppose but I'm trying to even like Minecraft try to remember like what is the next big major third-party game that we're gonna actually move the gauge interesting he's gonna be NBA 2k yeah I don't know like Skyrim I guess yeah you know if that blows up maybe people like oh maybe that wouldn't like you know the people behind the Witcher to bring that series over because hey look people bought the hell of Skyrim Zelda we should bring over the Witcher yeah please bring over the Witcher it would be fantastic I would love to have that go cool I guess I'll take over from the next point to okay so on top of this switch software total is you know 5.46 million for last year which again Zelda makes up over half of that right so or exactly have something like that yes I'm pretty close so again it's kind of gives you an idea that yes other games are selling whether it's what you switch sniffer clips Bomberman finding a visek is that encoding is that counting the actual switch sales itself the actual console the console does not know no that's just soft oh okay right about yeah well because okay cuz sometimes it get muddled in the past like the Wii game bundled with a game and they would count that game in with the sales so like how many we and so does technically also many games right okay again Nintendo's been funny with us but so there's no there's no packing game this time so that's just soft for sales yeah so here's something crazy we finally have some some numbers for Pokemon Sun and Moon 15.44 million units that puts it ahead of some Pokemon games behind some Pokemon games but it is still one of the most popular games to release I think like the last decade for Pokemon and that's just now the other ones have had their sales basically finalized so just new copies of this are still selling I mean I could see across the 17 million yeah that's that's that's good yeah I mean it's really really good yeah Super Mario Maker for 3ds which again was a was a ported version missing online functionality of the Wii U version 2.34 million that's a game I think if they brought that to switch would do oh yeah for sure cuz then you kind of get the 3ds on the go kind of gaming plus the full console version Nintendo with full online functionality well we're gonna get online functionality first began with but well my card it's gonna have online yeah so like if we get connected to the internet yeah it's about it yeah yeah currently Kirby Planet Robobot that was a 3ds game so 1.36 million and they were really excited that Pokemon go drove 3ds sales outside of Japan and 3ds sales I think rose by like 4 4% or 5% year over year which is the first increase year over year 3ds sales in like four years it had been declining 3ds sales every year which is pretty typical because the 3ds feels like it's at its end of life but then it just had one of the most popular games ever come out last year so but Pokemon go kind of helped reinvigorate some of that Pokemon goes on 3ds no no no Pokemon go drove 3ds sales like people want people who haven't played Pokemon forever they Pokemon go 3ds okay got it yeah which is what Nintendo is hoping happens more often and they're open like Super Mario Run helps Mario Odyssey right you know Fire Emblem Heroes helps Fire Emblem Echoes and Fire Emblem Switch and Fire Emblem Warriors again lots of Fire Emblem games hey go vote on my team we'll watch second part one for my team I got the only Fire Emblem character anyways moving on we know that 3ds sales 3ds zeros for last fiscal year stand at 7.27 million units and I'm sorry I was wrong it was a 70% increase year on year 3ds software sales reached 55.08 million units again 40% increase year near guessing that increase is like 90% Pokemon no probably more than likely anyways but I guess you know just stopping there you know because we always we always keep asking you know why does Nintendo support 3ds why are they just pushing everything the switch why this why that well you've got 55 million reasons yeah they keep pushing 3ds yeah in 2016 55 million 3ds game sold but at the same point in time if they push these to the switch is there people gonna be there's not 55 million switches right that's like I like I think I think I just this just gave me a like an epiphany yeah my Nintendo is still pushing the 3ds as hard as they are that we use install base isn't gonna be a 50 million plus for three four or five years right the 3ds is already there pushing 50 million plus a year right why would they stop making games they'll get that 50 million plus right until the switch hasn't big enough install base yeah no definitely and again who knows maybe this first year it'll happen maybe it'll be Nintendo switch sells 15 million units this year and ends up selling you know 60 million games because everyone bought a switch bought four or five games yeah I doubt it but you don't know I mean you look at it you know 55.08 million units that's technically there's more 3ds on the market than sold still it's a lot of money to throw away I think I understand it I understand that people love the 3ds which is what sucks I understand why people hate on this work I get it 3ds is great it has an amazing library of games it really does ever sure if you go through the library reminds me a lot of like the Super Nintendo just the quality of titles there are and the variety of titles yep it's just that switch baby yeah I know right just bring these games a switch like you can satisfy both crowds yeah have one switch and on 3ds I mean I know you got to retool a little bit to screens on screen but yeah let Nintendo start that out yeah yeah semantics so as we can say before breath a while and we use sold 1.08 million units we use software sales for last year our 14.8 million units not a whole lot so absolutely crushed by the 3ds I mean it put it this way in one month the switch sold like 1.3 of that driven software sales so just to put some perspective on that obviously 3ds destroyed it and that's a 46% decrease year-on-year also not a surprise there wasn't a lot of huge Wii U games last year and this last fiscal year besides breath in a while and they discontinued the Wii hardware yeah so you didn't really expect there to be big sales right and speaking of the Wii hardware decreased sales from a volume of 760,000 units is all they sold to 760,000 wow that is it but again they just continued right right and it wasn't selling that one like like that's a 77% decrease year-on-year that means the previous fiscal year they sold like what yeah 1.8 million or something like they did not sell that many units in the first place so again the Wii U was a flop oh yeah definitely as much as I enjoyed the system and enjoyed the games it was a flop and that's just further indication of why the switch was pushed out when it was even if some people think it was a little rushed because we don't want to be still not full features again we just brought it up for when we're seeing online that kind of sucks that should be their day one in 2017 yep but again these numbers kind of show you release of the switch when it did was a massive success and here's why in one month it outsold the total number of switch I'm sorry the total number of Wii U units sold over the last two fiscal years combined so it's like yeah duh yeah they had to do it Super Mario Run elicited a fantastic response from consumers worldwide and Fire Emblem Heroes is being enjoyed by longtime fans of the Fire Emblem series so what's interesting about Super Mario Run and Fire Emblem is we learned in this thing that Super Mario Run has like 150 million user base install but Fire Emblem Heroes has a very tiny fraction of that but Fire Emblem Heroes makes significantly more money than Super Mario Run and that's to be expected Super Mario Run is a one-time purchase game or free to try and Fire Emblem Heroes is micro transactions micro transactions action games make more money over time whereas Super Mario is like we make some money day one and then that's it but again Nintendo's hope for these games is pushing sales of other things and I look forward to be Pokemon go every time I'm sure their investors will offer to be Pokemon go every time so amiibo figures sold 9.1 million units and 9.3 million units for their card-based amiibo again that's what probably right line Nintendo's been selling between 8 and 10 million amiibo the physical and card version since they came out so again amiibo still really really popular not much more to say about that I will say in this past fiscal year you're not really big into amiibo but is there an amiibo figure that just really springs to your mind that you loved from this past year no not really because not even the breath of the problems yeah I mean outside of those yeah those were last this was past fiscal year yeah I looking at the one on your desk with like firing yeah the archer of my new v3 last year yeah yeah that that one is pretty awesome I do like the the oh why can't I think of the name right now oh my gosh I'm so out of it right now I like all the zealot but for me by the way it's also a little bias because I was at her to ship it's all the farmers so a little bit of a little bit of the 30th anniversary Zelda amiibo came out last year the guardians there we go all the cardio the guardian with the legs yeah the giganticness of it all right so here's where things get a little interesting the operating profit is 489 billion yen against net sales of 29 billion yen of which 359 billion yen or 73.4 percent or sales overseas sales those are some really weird numbers 50.3 billion yen share profit of entities accounted for using the equity method related to the Pokemon company and other investments result in an ordinary profit of 20.2 billion yen due to the sale of the Seattle Mariners Major League Baseball team Nintendo recorded gain on sales of investment totally 64.5 billion yen as extraordinary income meaning that the net profit attributed to owners of the parent was 102.5 billion yen lots and lots of numbers there the baseline of what you need to know is that Nintendo essentially in terms of total cash flow total money coming into them they had about 980 million dollars of money float into Nintendo in this past fiscal year which is a ton that's almost a billion dollars coming to Nintendo and Nintendo by the way is a billion-dollar company you don't have to make a billion dollars in a year to be a billion-dollar company you just have to have a value that's over a billion dollars right so Nintendo is a billion-dollar company so like that's just one of the Nintendo's highest years ever again sale the Seattle Mariners really helped that's a one-time thing Pokemon go really helped as you said you 20.2 billion yen out of that I mean that's not nothing to scoff at so you know their net gain I'm not exactly sure what it is but it's probably pretty high yeah because again they had some extraordinary income that they usually don't have and it'll be interesting to see what the switch does for them this year right it's just which a mobile game there's no Seattle Mariners game there's probably no game it's going to be a smash it like Pokemon go so we'll see yeah yeah so here here's some interesting stuff on Nintendo is targeting 10 million hardware units for the switch for this next fiscal year and then they're targeting 35 million software units for switch from this fiscal year so they'll look at that you know a three-to-one attach ratio for software basically right and then 10 million more units which will put the total their projected total at the end of March next year around 12.74 million so around 13 million yeah so that does that seem high or low to you to project 10 million hardware sales this year yeah I know it's not gonna keep the the rate it's going but if it could am I alert my car you can't they can't keep it up in the shop Mario cards coming on now that's we have a high demand title yeah I'm probably hoping that'll carry all through next month and arms and arms I know some people like oh what's to be the arm it was it just goes on the cover edge magazine okay yeah so like Nintendo's putting some promotion behind this bad boy yeah so who knows I mean even edge magazine have a lot of nice things to say it said this is like the sleeper smash it right which again the last game to do that with Splatoon right and you I mean you have Splatoon 2 coming out too yeah so I mean it's the whatever gets announced there right I think I mean it's definite I don't know if it's gonna keep this exact pace but it might keep something close so you're that might actually be a little low to be completely honest so it's just anything that up because there's a lot of investors that are basically saying that's what I was low balling the hell we're looking at we're projecting 12 15 million and what I will say is I think Nintendo the projection is low too but I I feel like it's responsibly low because right Nintendo over projected basically everything this this past generation which I'm throwing Wii U 3DS and they projected so much sales for those things and plopped plop plop plop plopped yeah and it was classic could be it could be like this where they under projected sales they only projected two million sales for switch in the in March and it's all 2.74 they're only projecting 10 million this fiscal year I mean Mario Odyssey plus you know Mario Kart and like you know who knows what other games are coming I mean yeah we do have a giant list of games so we have an idea yeah but we you know in terms of major titles they own Xenobit Chronicles you just don't know I feel like it's low just because as much should we talk before that you know maybe switches kind of a Zelda system that's why it's selling which yes that's the primary reason people are buying to play Zelda but people's experience after playing Zelda is that the system kind of nice yeah this system is fantastic and that when they go in the eShop the games that are there they're not bad yeah snake pass isn't bad and never clips pretty good yeah shoveling pretty good Superbomber and are one of the launch games I haven't played it yet just got a copy the other day it just got a massive update that like improved to the 60 FPS and add all these new modes to it it's almost like double the content offer free like it's crazy the game is significantly better today than it wasn't launch so like even I can see people adjusting the reviews of Superbomber man now and being like oh hey look like this is this is like an actual good game now down just okay so it's very interesting yeah 10 million just feels low right now and it feels weird saying that because like oh not gonna sell 3 million every month I mean of course that I can sell 3 million every month but you know could they sell 15 over 12 yeah I consume selling easily over a million eight we haven't even had our first holiday period right and it's not like yeah Xbox Scorpio comes out and that's gonna have momentum and everything but what games gonna outshine Mario Odyssey yeah right like yeah there's gonna be that new Call of Duty game the World War two game which looks pretty good there's gonna be you know maybe new Assassin's Creed maybe you know whatever new games Sony Microsoft upcoming but again when has Mario truly ever been outshined when it's a major 3d platforming game like it just doesn't happen when Galaxy came out then it get overshadowed of course in it galaxy to get overshadowed no that's right 3d world get overshadowed yes because that was not the type of 3d platforming you want they wanted that free roaming experience right so yeah I think the switch has the momentum tenders got to capitalize well right and I think is the thing is that makes me feel like maybe the template is right because Nintendo doesn't do well in capitalizing momentum yeah so there's that but again from what I see like yeah Mario Kart 8 Deluxe yeah it's a Wii U game but dude not a lot how many we use we I mean in one month this thing by the end of this fiscal year it could already have all told the Wii U in terms of total sales for the switch yeah so it's like dude the Mario Kart 8 Deluxe is gonna sell man right right and I think they have their games based out well enough but a time it hits a small little it's not here's launch games then here's nothing for three months then we release Lego City that nothing for six months and then you just pick man it's like yeah here it's like no we have Zelda yep you know plus won't you switch on our launch lineup yep and we have some indie games in between to the month indie games indie games and then bam here's Mario Kart yep indie games indie games Minecraft indie games indie games indie games for a whole month they kind of a month off but they almost pass like I feel like they've they put instead of put Mario Kart at the beginning of the month they put it at the end because they wanted to carry both months yep so Mario Kart could actually carry sales for another month oh yeah and then bam arms yep and then you have E3 and then arms at the same time kind of and then right after that's between two and then whatever they have after that and after that it's all lined up leading up to Mario yep so that feels a lot better than what they did with Wii U you know it feels a lot better with than with 3DS 3DS launched with zero games that mattered pilot wings Street Fighter yeah there was nothing people really wanted to play it Madden wasn't good in fact the first game early sell 3DS units was a remaster of Ocarina of Time so it's like yeah okay what are we gonna get like a good game yeah yeah like that's not saying that's a bad game like a unique game to the platform yeah remember like our 7 came out yeah Super Mario 3D land and blah blah so yeah that's kind of kind of the roundup for for the big news in other words it was a fairly decent year for Nintendo and yeah it's gonna be probably another fairly decent year this year too I think so yeah I mean you know I'm just glad to have some of the notes they have here some of the plans of part of them echo channel Vellegia it releases in May and ever Oasis and hey Pikmin and June July like the time what's with 3DS momentum stuff you know and they project like a net sales of 750 billion yen and an operating profit of 65 billion yen an ordinary profit of 60 billion yen and a net profit attributed to owners 45 billion yen for this next fiscal year yeah so it's looking good I think it's a big takeaway from this is Nintendo had what hell of a year in terms of making money for investors and while this year is not gonna make that much money because again no Seattle Mariners know this and that but they are in a very good position to potentially get back to we levels and that's crazy because it was we in DS hitting at the same time 3DS isn't nearly as big as either of those and switch might be maybe for this first year hitting the sales ground as hard as one of those platforms right so I think it can off one of those platforms get up to we in DS numbers yeah yeah right so Nintendo they're making that money money and I'm sorry it's probably a little boring saying because there's a lot of facts but right dude there's a lot going on at Nintendo loving it loving it what's your biggest takeaway out of this investors meeting I should probably invested in Nintendo should have bought it with the stock is low yeah right sold when it peaked during Pokemon go yep