 Well folks, today we're going to be talking about Nintendo's financials again, but not because we're really focused on how many sales and stuff that we already covered all the sales data for the most part yesterday, but because Nintendo announced quite a few very very interesting things when they released their second quarter financial results in corporate management policy briefing for the fiscal year ending March of 2024, essentially they dropped a giant PDF file with a bunch of graphs and information detailing future plans at Nintendo. And there's some fascinating stuff we can get from this including things that indicate a feature for Nintendo switch to which I really want to make sure that we talk about today because it's the first indication from Nintendo that this is happening. Now before I dive into that, thank you guys for being here. I just want you to smile today. Now the first slide from this PDF I want to actually focus in on here is the Super Mario Bros movie because we have some additional details here. Also, we know the gross revenue is at $1,361,025 to $250,000. This is obviously about the box office, the all-time highest grossing film based on a video game, all-time second highest grossing animated film. But what's interesting is we have the numbers of how many people watch it. It was seen in theaters by 169.84 million people. It was seen by an audience across a broad range of ages both with and without gaming experience and it greatly contributed to expanding the number of people who have access to Nintendo IP. So it says the Super Mario Bros movie is a hit globally and many people went to see the movie, including not only those that experienced with Mario games but also those not familiar with video games. As the first movie in which Nintendo was directly involved in production, we believe the Mario movie has achieved a significant result in driving our basic strategy of expanding a number of people who have access to Nintendo IP. And what's interesting is they do this chart here showing availability of Nintendo Switch by region. Now remember, it used to be available in Russia but due to the war that's not the case anymore. Anyways, you can see this is where Nintendo Switch is available and then you can see where Nintendo Switch is available in comparison to the movie. So the movie was available in many more places in the world than Nintendo Switches, which is sort of their proving ground that, hey, people that aren't just playing Switch were going to this movie, including 169 billion people went, that's more than the total number of Switch owners. So that's pretty fascinating. Now, one thing about the movie and how it impacted stuff, we mentioned this briefly, but we saw an increase in sales. So the global sell through a five Super Mario related titles for Nintendo Switch through April saw a 1.3 x increase year on year. That's U Deluxe, Odyssey, Mario Kart, Mario Maker 2 and Bowser's Fury. And even this we're seeing a number of new unique users for things like Mario Kart Tour and Super Mario Run. So yeah, the Mario movie basically just really helped increase interest in Mario in general, which is exactly what Nintendo was hoping was going to happen. And now they have the data to back it up. Next up, we have some data on Super Mario Wonder here you see released on October 20th, the global sell through two weeks after release, which they didn't have to include this because it's not part of that period. This is actually part of the next period of sales for Nintendo, but 4.3 million units making it the biggest release for a Super Mario title. So you'll see what it says here is the human to sales of 4.3 million units within the first two weeks. It makes it the fastest selling Super Mario related title. Super Mario related titles also tend to sell consistently over a long period of time. We anticipate this title will be an appealing choice for consumers during the upcoming holiday season and will continue to sell next year onwards as well. Super Mario Wonder is the first entirely new entry in the science rolling Super Mario series in 11 years. So yeah, like 4.3 million is an incredible launch. This is the fastest selling, you know, thing ever. It's weird, you know, because we've got so many incredible launches on Nintendo switch that we'll be like, but but here's the kingdom sold 10 million. And like one day, yeah, it did. But let's just be fair. It actually was three days was the launch weekend, but 4.3 million fastest selling Super Mario game of all time. That's really, really fun. Now this I just want to bring up because I like to say Pikmin some recognition, Nintendo had a number of slides on Pikmin, and they're very like happy with the sales of Pikmin 4. It's very obvious we're going to get a Pikmin five, like the n switch to if not a cross generation title, you can see that them trying to foster interest in Pikmin with various releases Pikmin bloom. And they feel like this was mostly a success Pikmin one plus two HD using some merchandise and stuff. So they seem to be very, very happy. Obviously, you know, it's sold through 2.5 million units as of October 31. And it's the biggest global cumulative sell through in Pikmin series history. So yeah, they're very happy about it. We're getting a Pikmin five. Now I just want to include this slide really quickly in the video. I don't want to spend a ton of time on it. But I just wanted to note that, you know, Nintendo is trying really hard to penetrate into a global audience on mobile phones. These are their currently active mobile games and 860 million downloads through September 30 of the 2023 in 164 different countries and regions. So Nintendo is clearly quickly, honestly, they're probably one release away from encroaching on one billion downloads. So I got to give Nintendo some props here, they are making some headway in a way that some companies have actually struggled to do so in the mobile space. Nintendo is gaining some ground there, even though you know, they're not making as much money as some of the bigger games out there. That's pretty interesting just to look at the amount of people playing Nintendo games on phones. Now, this is a slide I just wanted to glance at here because this to me is the first indication of backwards compatibility for Nintendo switch to now we already knew Nintendo accounts were being forwards compatible to switch to Nintendo announced that back in 2021 when they said it's heading to the new Nintendo hardware that comes out in 20 xx. But what we didn't know was what was going to be included in this because when you look at this save data as an example like cloud save data is actually a feature of Nintendo switch online a paid subscription service, not Nintendo accounts and they haven't really talked about NSO moving forward onto the new platform much. But here you see Nintendo account, the their plan is to support long term relationships with our customers which includes your purchase history, your save data, your friends and your experience data. And this to me means of like they're looking at long term relationships. This looks like it's clearly, you know, these are things will be forward to switch to including your purchase history, your save data, your friend list, all that stuff, which tells me that this is going to be a backwards compatible system that's going to be able to access your purchase history and all your save data and all your friends. And to me, that is just nothing but a good thing that this is what every other company is doing. And it's nice to see that Nintendo obviously without directly saying it because they're not talking Nintendo switch to is still being like, Hey, we're going to be sure that our customers are coming forward with us to the next platform. And we're going to keep that purchase history your save data and your friends. So I'm really happy about this. Again, it's just a small little thing. But to me, sometimes the little things are what matter the most. I only am briefly stopping at this slide not because I want to point out the amount of switch units that sold. But I forgot to mention yesterday that the cumulative hardware software sales are at 1 billion 133 million point 23 million units are actually 50 million in terms of software sales ahead of their original projections. So I just wanted to point that out, man, this is the first system Nintendo's ever had across a billion in software. And it's going to keep climbing. I don't know where it's going to stop 1.5 1.6 2 billion. I don't know time will tell. Now this is just an interesting one. When looking at, you know, the Nintendo switch first party software sell through. If you see the only year that was really better for them than 2023 was 2020. And you're just seeing how strong sales are going for Nintendo still in its seventh year. I look it's incredible what's happening with Switch in its seventh year. So in terms of maintaining momentum, Nintendo's done a fantastic job. Now this slide I found really fascinating looking at here because I love the legend of Zelda. So if we can get a deeper dive into this, you know, it sounds like dramatic growth in the scale of sales and it shows like November 2006 7.5 million for the Wii version Twilight Princess, which I think is our most up to date sales figures for just the Wii version. And then you see in March 2017 31.15 and then obviously May 2023 for tears of the kingdom 19.5. But what they wanted to show here is the long trail of sales. So like Breath of the Wild only sold 8.49 million in its first and second fiscal year post release. So those are almost two in complete years. So 22.66 million of the sales came over the next five years of Nintendo Switch, which is insane. And then if you look at, you know, more consumers in every region. I mean, look at this. There's Twilight Princess showing, you know, that but look at look at look at tears of the kingdom. So tears of the kingdom has only about three million more in the Americas, which is still a big deal. But look at the increase in Europe, Japan and other compared to Twilight Princess. Absolutely insane. And it says, you know, we continue to expand the Legend of Zelda series over 30 years. The Nintendo Switch sales of Legend of Zelda software have grown dramatically compared to past titles. Like these charts are just sometimes they're just fascinating to look at. People could skew stats in many different ways. I just find this interesting. And why are they comparing to Twilight Princess? Because that is before Breath of the Wild, the best selling Zelda game in the franchise. So that people are wondering why they picked Twilight Princess specifically for this comparison. It's because there really isn't any other game that sold more than it before Breath of the Wild for Zelda. Now this chart is just fun to look at because it's sort of a vindication of the Switch effect. We just saw obviously what happened with the Zelda series with the Switch effect. But look at the sales. Mario Kart 8 Deluxe best sales ever happened on the Switch. Animal Crossing best sales ever happened on the Switch. Super Smash Bros. Ultimate. Mario Odyssey. This is literally the Switch effect all of us have been talking about for years that every major franchise sales best on Switch will have its best selling entry as which we just saw it again with Pikmin 4. Like this is just what happens. And it's really just fun to see Nintendo put together this chart because these charts here, I mean the Switch isn't just like given the best selling versions of games. It's trouncing anything prior. So I just find it to be absolutely fascinating that Nintendo is now highlighting this and hopefully they can keep this going with their next platform. This chart here just goes to show kind of following up that last one that Nintendo has evergreen titles. Remember they don't lower the price of their games. And so you can see like here's the first year of sales in gray. Here's all the you know all the data sense. And so Nintendo is just trying to point out how evergreen their games are. Absolutely. They are significantly more evergreen than pretty much any other company. So yeah they should be highlighting this. It's obviously something to highlight to investors and be like hey when we drop a game it's got years and years and years of sales ahead. This one here I like mostly because of the Kirby stuff but it's interesting because Animal Crossing and Kirby were actually way more popular in Japan than any other region before before the Nintendo Switch. But now Switch came and now look at look at the America increase in sales. I mean look at that even double the sales in the channel Europe jumped ahead. Then look at Kirby you had Dreamland you know back on back on the Wii. I mean look at this the best selling versions in Japan. Now look at forgotten land man 2.5 million in the Americas. You know it's now the lead like just incredible. Here's one thing I think is interesting. I don't know the games are appealing more here. I think the system is the Nintendo Switch is such a sleek system even to this day. I think with the system appealing it's making people buy more games and when they're buying more games and Nintendo's releasing higher quality games and now you're seeing the sales increase to back that up. Now I'm only bringing this one up briefly because we rarely talk about third party games because the widely held opinion is nobody buys third party games on Nintendo. But here we have a chart from Nintendo showing strong sales of software publisher titles. These are third-party games in just dance on your FC 24 Monster Hunter you know Minecraft. You're just seeing a wide range of games proving that third-party games do sell well on you know Switch if they dedicate themselves to it. Now it's funny because FC 24 was the first like on par you know used to be called FIFA game. Pretty much the entire generation why it took this long for us to get an on par version I don't know but they're being rewarded with increased sales so pretty fascinating. Nintendo also updated us on how many people are members of Nintendo Switch online. They have 38 million members. Obviously they're highlighting the services and the F-099 stuff but that is an increase. Nintendo has not seen a decrease in NSO subscribers since launching it. It's only ever gone up. Now the increase is happening slowly and I'm sure they'd like to see this more like 50, 60 million but that just means that Nintendo knows they still have work to do to convince people to end up subscribing with 38 million subscribers. Yeah this is like another reason that you would think Nintendo wants to carry all of this forward and have full backwards compatibility because the bottom line is you have paid 38 million people in the world are paying you monthly slash yearly for a service. You're going to want to carry that service forward so it's just nice to see an update in the numbers. By the way in case people were thinking that Nintendo Switch was slowing down there are more active Nintendo Switch people like more there are more active people playing Nintendo Switch right now than any prior year. There's 108 million last year it's 117 million this year. Oh man Nintendo has a lot of active users. Now this is a slide that is just very boldface there's not much there it just says new titles will continue to be released for Nintendo Switch and they just like say it again and they just say going forward. To me I think this is just Nintendo indicating that they're not only have new games coming next year there is a high potential Nintendo might be looking in a cross generation titles. We talked about the colored button theory and the one thing about the color button theory is it would indicate a cross generation title with switch 2 and you know maybe that's what Nintendo is looking into because to be honest there is a fervor for software on Switch even if the switch sales start slowing down there the software sales haven't so Nintendo would be foolish to not do some cross gen for a while given how many people keep buying games on switch so I do think that we're going to see some cross generation stuff from Nintendo moving forward I think there'll still be a number of exclusives of course but I can see also it being more like a 50-50 split some of these games are exclusive to convince you to buy the new hardware some are cross generation and they're hoped for you to buy the new hardware will be some performance metrics or better assets or I don't know maybe they'll be exclusive game modes beats the hell out of me that by the way I don't want to happen but you know companies do what companies do now that's really what Nintendo had to bring to the table but I feel like there's a few interesting facts a lot of interesting statistics and nuggets in there and the biggest thing being that it definitely we have the strong we basically have the strongest indicator yet that Nintendo is going to have backwards compatibility on switch to and I know that maybe that might be what we focus the title around another video I'm not really sure because we went over more than just that but you know titles are kind of like you have limited space you can you can only mention so much I just think that Nintendo is in a really really great place right now they're clearly doing better than the company's ever done and whatever is going to happen whatever the future holds the Zelda movie the switch to you know future games you know theme park expansions the museum they're dropping and all this other stuff the only indicator we have at the moment is that Nintendo is doing very very well and they are going to try their best to keep doing very very well moving forward what that means time will tell thank you guys so much for tuning in we'll catch you later you might want to tune into tonight's podcast we have a very very good topics tonight with a full six pack hmk is up in the house it's going to be fun we'll catch you guys later tonight at 8 p.m central time live for the nintendo prime podcast