 Well, we knew today was gonna be a very interesting day for Nintendo news because Nintendo was gonna have their financial brief to sum up their third quarter of the current fiscal year that ends in March of 2024. So we knew we were gonna get holiday sales data and maybe some other interesting tidbits. And indeed we did as Furukawa gave us a very interesting quote that to me, and this is my interpretation, seems to be strongly suggesting Nintendo Switch 2 is coming in 2024, but it seems confusing because some people have mis, I don't wanna say misinterpreted, just straight up misquoted the actual quote to create headlines that are not what the quote says. And I know you might say, well, Nate, your headline says your interpretation, I am a talking head, I am not on a news website, okay? So this is my interpretation of what he said, but we will still present to you the fact based statement and then you can make your own determination. But before we do that, let's go ahead and dive into the actual financials because Nintendo had a better than expected financial briefing, although some people are taking it a little too far. Let's go ahead and look at the actual numbers. So we have our report here, we're looking that they released with their actual commentary on it so we can see what Nintendo's thinking, because it's not always easy to read the just normal reports. So as we scroll down here, you can see their consolidated fiscal year highlights and their net sales and all of that, and you'll see that their profits and their sales and their numbers are actually ahead of last fiscal year's quarter one through three. And this might be giving you the idea that man, Switch must be just killing it and Switch is actually doing well, quite well, but not maybe in the way that you think. There's other reasons these numbers are really high and you're going to see this in a moment. So you can see again, another breakdown of their sales, where they come from, yada, yada. Again, everything's looking very, very good. But let's take a look at a couple of these numbers, a couple of things to note. Their net sales, right, their net sales as you can see here are up almost 100 billion yen, right, about 99 billion yen. And you might go, man, where's a lot of that increase coming from? Well, you are seeing dedicated video game platform one. So you're seeing that this has an increase here of about 60 billion yen. But then you're also seeing mobile IP related incomes. This is their literal like phone games, 75 billion, a 93.4% increase. So you're seeing a huge part of that increase is actually due to their mobile. Then you're also seeing a 108% increase from their playing cards. So there you go. Let's dive into a bit deeper into these numbers though. So it says, looking at sales in our dedicated video game business, unit sales of Nintendo Switch hardware and software both decreased. So to be clear, Switch hardware and software decreased year on year, not increased. However, net sales increased 4.7% to 1.3 billion yen, due in part to the depreciation of the yen in foreign exchange markets. The increase in proportion of hardware sales accounted for by Nintendo Switch OLED, which has a higher unit price and the growth in sales of add-on content not counted in software unit sales. So they're saying, yeah, the first thing they note is that the depreciation of the yen is actually why some of these numbers look as good as they do, not necessarily because the Switch actually sold better. It did. It literally note it sold worse. The Switch sold less software and hardware than quarter three of last fiscal year, but due to depreciation of the yen. But due to depreciation of the yen, it looks better, right? So they're just in a very fortunate financial position because of the way the yen is going and the fact that most of their sales come from overseas. So overall sales in our mobile IP and related business increased 93.4% to 75.2 billion. And this is bolstered by movie related sales and an increase in royalty income. So yes, they put movie sales in that. That's why it's mobile and IP sales. Probably Lego profits are probably somewhere mixed in that IP sale as well. See the gross profits are obviously up, which is really good investors like to see this. Despite the Nintendo Switch OLED model, which has a lower profit margin and other models in the Nintendo Switch family, accounting for a higher proportion of console sales, our gross profit margin increased by 1.9 percentage points year on year to 55.8. This was supported by several factors, such as a decrease in proportion of hardware sales, as well as an increase in proportion of first party sales and proportion of digital sales. So more first party sales potentially this holiday than last yada, yada, yada. They're just, this is just what Nintendo is saying. All right, as we go down, this stuff we don't need to worry about as much. Again, this is more so administration expenses and all of that great stuff. Your ordinary profit and net profit, this is really interesting to look at, especially if you are an investor and you're looking for dividends and if now is the right time to buy, all of that stuff. We don't care necessarily about those sort of numbers. We do care a bit about the net sales, of course, but in the end, none of this is that big of a deal for us. I'll put a link down in this file down below if you would like to get a closer look at that stuff. But now we get to this and this is where this is cool. So sales of status of Nintendo Switch and this is sell in. So this is the amount of units that they have sold in. So sold in just means the amount they have not only just sold digitally, but also physically combined with units already bought and purchased by retail. So what you're gonna see is that Super Mario Bros. Wonder hasn't actually sold in 11.96 million units, but for Nintendo's purposes it has because Nintendo already sold those copies to retail, but those copies haven't sold off retail shelves. So 11.96 million, that's the number you're gonna see reported a lot, but that's not the actual sales. We'll see it in a moment. That's just sell in. Sell through are the raw number sales. You don't always get those, but Nintendo does provide them. So what you're seeing is sell in, for things like Tears of the Kingdom, 20.28 million. And some people actually think it's a bit disappointing. It's a little over 700,000 units during the quarter, which yeah, you know, you consider that Breath of the Wild apparently sold 460,000 units during the, yeah, it's a little bit of a slowdown, but maybe people are just waiting for that next platform. Super Mario Bros. Wonder at 11.96 million units. Just to be clear, and I misquoted this on social media and fellow YouTuber player essence went ahead and put me on blast, which was totally fine, I deserved it. This is the fastest selling Mario game ever. These are really good numbers. So congrats to Mario Bros. Wonder continuing to be the fastest selling Mario ever. You see Pikmin 3's at 3.33 million, and Mario Kart 8, the Luxury in this time period. So it's 6.79 million. Mario Kart 8, the Lux is the, it just keeps selling. And these are million sellers for fiscal year 2024. So this is the entirety of 2024 at the 6.79, same with the 3.3. So yeah, that's just awesome. All right. So unit sales for the entire Switch family declined 7.8% year to 13.74 million units. This breaks down to 3.4 million units of Nintendo Switch and 8.17 million units of the Nintendo Switch OLED model and 2.18 million units of the Nintendo Switch Lite. Although unit sales decreased year on year, sales have been stable given the fact that the platform was in its seventh year and the results were generally in line with our expectations. Actually, slightly ahead of their expectations as we're about to see in a moment. Unit sales of software decreased 4.7% year on year to 163.95 million units. Sales of Super Mario Bros. Wonder released October 2023, got off to a strong start and sales also grew for other new titles in the fiscal year, including Tears of the Kingdom and Pikmin 4. So yeah, April had a positive impact on sales for Mario related titles as a result. There were 24 titles that sold over a million copies during the period, including titles from other software publishers. So Mario pushing some units, man. Now, here's where you get to the interesting stuff and there's two things to note here. One, as you can see, the Switch OLED is clearly the dominant selling platform at this point in 2024 and it's not really close. It was slightly below being the overall dominant platform in 2023, because if you combine Switch Lite and the regular Switch together with slightly higher in 2024, it is so far the dominant platform. This is the current fiscal year. And then they've also increased their annual players to 122 million. Now again, these are still estimates. You know, it's hard for Nintendo to exactly track all the different accounts, but whatever, there's 122 million active accounts playing on Switch, which is a lot. And you just see that it's still increasing this far in, it's just wild. So congrats to Nintendo for continuing to show growth in those areas. And here's where you're gonna see that global sell through. Remember I noted it was gonna be smaller. It's at 10.7 million, so about one million less than their actual sell in, but that's still the fastest selling Mario of all time. You can also see the first party sell through is insane. Look at this stability the last four years. Hasn't dipped a whole lot, primarily carried by Mario, Pikmin, and Zelda last year. But still, you can see that they're having a great fiscal year with first party stuff and they make more money on first party than they do on third party stuff. So, Gudos to Nintendo. Now, we get to go down here to the digital sales. This is obviously a big part of Nintendo as well. You can see the digital sales is increasing pretty drastically. I feel like a download-only software to add on it made up a huge chunk here in the last fiscal quarter. And then you look at the download versions of package software is also a big one as well. And you can see the proportion of digital sales here, 62.9%. So, I'm just saying that these are some pretty interesting numbers. You wanna look at it. Nintendo's digital footprint keeps growing for better or worse. I know people would like to see, well, maybe something a bit more favoring physical sales, but it is what it is. Download versions of package software for games like the Legend of Zelda 2 is the kingdom of sold well and sales also increased for Nintendo Switch Online for add-on content like the hidden treasure of Area Zero for Pokemon Scarlet Violet. So, yeah, I mean like they're just, the digital sales are just getting better and better and better as things tend to trend in that way. They go over their upcoming lineup or at least the rest of the fiscal year lineup, right? They had another code already in January. They have obviously Mario versus Donkey Kong coming up next week and Princess Peach Showtime in March. So they're just letting investors know, hey, these are what we have coming up. They also show they've expanded their stuff with theme parks. That's gone very well for them and obviously reiterating the news that they're opening up a new one in 2025. And that's about it. You get down to the reference material and these are just some of those raw numbers. What's interesting too, these are always, this is always the list that people like to look at just to sort of look at the launch dates of primary Nintendo products. The one thing we always try to find on here is when are the future products coming? That's the schedule right here. And we still see Metro Prime 4 right here is still listed as TBA. So they didn't forget about Metro Prime 4. It's not canceled or it wouldn't be on the list. At least there's some positive Metro Prime 4 is still coming. Okay, so that's a lot. And look, you can get more breakdowns of this stuff if you would like. All you have to do is head on over to that information I gave you. One last thing I wanna do for sales data is just give you the updated top 10, right? The updated top 10 and the overall sales of Switch as well. Now, if you kinda go look at this, you see 60.58 million for Mario Kart 8 Deluxe, which is just insane. Animal Crossing New Horizons at 44.79. Super Smash Bros at 33.67, again, this is the top 10. Legend of Zelda Breath of the Wild at 31.61. Mario Odyssey is now crawled up to 27.65. Pokemon Sword and Shield at 26.17. Scarlet and Violets at 24.36, kinda nipping up the heels there. Super Mario Party has crossed 20 million. It's now at 20.34 million. Legend of Zelda Tears of the Kingdom's up in here at 20.28. New Super Mario Bros used Deluxe. It's actually at 17.2. Hopefully Mario Wonder joins this list at some point later. Maybe it ends up bumping off U Deluxe at some point this year, but that's pretty exciting. And what people always, always like to see are the overall Switch sales, which are at 139.36 million, just shy. Now, it's notable that Nintendo, in their documentation, also increased their forecast for Nintendo Switch. They've been at 15 million this entire fiscal year. They are now projecting to finish at 15.5 million because they sold a little bit better during the holiday season, roughly half a million more units than they thought they were going to sell. But obviously we still noted in Nintendo said themselves that it was still another year on year decline for their third straight holiday season. Okay, that's all cool. And that's probably not the main reason you're here. You guys want to know what the hell is going on with Nintendo Switch too. First, we need to get to some misinformation. And I hate when this happens. I hate when outlets do this, but a lot of misinformation is always floating out there. And I want to make sure that we set the record straight on what was actually said versus what the headlines say, and then actually go into the quote and then give you my interpretation, which you guys already see in the title. So here is the actual misinformation. This is just from my Nintendo news. I've seen this on a number of YouTubers. I've seen this at a number of people online and social media. Nintendo president says current Switch will be Nintendo's main business in 2024. That is not what the quote says. And this has led to a lot of people saying, oh, Switch 2 is coming in 2025. When the actual quote comes from Bloomberg. Now I want to know before I show you this Bloomberg article, we are using a special way to read Bloomberg because it is a paid website. I'm not going to give you this link. I'm actually going to link you to the original article. It's up to you to pay to see it. But because of the misinformation, I felt it was important. We actually showed you guys the article. So let's just take a look here. This comes from Bloomberg. It says, Nintendo lists profits as Switch does outlook after profit beats. So that's their title. They're not trying to clickbait you or anything. But if you go down to the actual quote, this is where it comes from. There's a spot here where it says right here, the existing Switch will be Nintendo's main business heading into 2024. President Shintaro Furukawa said on a conference call after the earnings report. Hold on, hold on, not done. The company's plan for the next fiscal year will be shared at its next earnings briefing he added. So let's read this exactly. It's not their main business in 2024, it is. The existing Switch will be Nintendo's main business heading into 2024. President Shintaro Furukawa said on a conference call after the earnings report. The company's plan for the next fiscal year will be shared at its next earnings briefing he added. That means they're not talking about next fiscal year. They're only talking about now through March. Yes, the Switch is their main business now through March. We know this. We know this. Is there another system launching? Oh, did you guys say Nintendo Switch 2 was launching this month? Did you think it was launching in March? No, Nintendo Switch is obviously their lead platform and main business in January, February, and March. That's all he said, heading into 2024. We have now headed into it. Switch is still their primary business right now. Yes, and then he said we're not gonna talk about the next fiscal year, the future of Nintendo, until the next financial briefing. They're basically saying, hey investors, stop asking me questions about Switch 2. We ain't talking about any of that crap until next time. He also went on to say in there that they're always working on new hardware and software and decline in the comment about anything Switch 2 related. Guys, come on. To me, it's very obvious what he's saying. He's never called the Switch the main business heading into a year. It's always been the main business for the year. So, since he's not saying for the year or all that, he's just saying into the year, it highly suggests that yes, the Switch is just the main business for now and that business is gonna transition. That business hasn't been talked about yet, right? The Switch 2 hasn't been announced. So, we're clearly not gonna talk about the plans for Switch 2 before Switch 2's even been announced. Switch 2 will likely be announced before the next financial briefing, which happens in May. And in May, they will then detail out the roadmap and answer all the questions about the system for the next fiscal year. Then why would they answer those questions now? So, no, Furukawa was not denying a Switch 2 is coming out in 2025. He was just saying that right now, heading into 2024, that's their main business. Anything else that we talked about at the next financial briefing makes total sense. The system's not announced. If it was announced, maybe there'd be something to talk about, but it's not. They intentionally did not want the system announced before this financial briefing and that's fine. It still could be announced this month or in March or even April or whatever and then they could talk about at the next financial briefing. It's pretty silly, I think, to take this quote and extrapolate it to me and Switch is their main system for all of 2024 when that is not what was said. It just said heading into not for the entirety of and none of what he said had to do with next fiscal year because he literally said, we'll talk about next fiscal year when our next meeting that happens during next fiscal year. It's, oh man, guys, I get really tired of this stuff but you guys know my interpretation. This is what I think it means. You guys can take it another way. I don't think there's any way you could take it as extrapolating that it means all of 2024 because that's not what the quote actually says. It also doesn't mean Switch two is coming out in 2024. I realize that that is just my interpretation. All right, I think I'm done. I think I'm good. All right, guys, thank you so much for being here. I am with Ed O'RoboDance from Nintendo Prime and I'll catch you guys in the next video.