The success of console Switch in its first year in the market has made Nintendo’s profit jump more than 500% from 2016 to 2017. The annual balance for fiscal year 2017 (between April last year and the end of March 2018) was released by the Japanese company, which also announced a change in its command from June.
With 17.79 million Switch units sold since launch – 15 million in fiscal year 2017 – Nintendo saw operating profits rise 505 percent to $ 1.62 billion. Revenue increased 116% and was $ 9.66 billion in the period.
In addition to the console itself, Switch games have contributed to Nintendo’s strong financial performance. “Super Mario Odyssey” sold more than 10 million copies, while “Mario Kart 8 Deluxe” sold 9 million and “Splatoon 2” sold 6 million around the planet.
Nintendo still had more than 5 million units marketed from the Super Nintendo Classic Edition to crown the company’s excellent 2017 year.
Change in command
Financial results have brought a change announcement on Nintendo. Current CEO Tatsumi Kimishima will step down at the end of June. Kimishima, who is 68, took over the leadership of Nintendo in 2015 after the death of former CEO Satoru Iwata.
According to the Japanese newspaper Nikkei, Kimishima believes that Nintendo should be in the hands of the younger ones and that is why it was looking for new leaders within the company. Now that the Switch has already proved a commercial success, he has decided to step down and appoint a successor.
Starting in June, Nintendo’s CEO will be Shuntaro Furukawa, 46, who has been with the company since 1994.
Already with Furukawa, Nintendo predicts another positive year. The company plans to sell another 20 million units of the Switch by the end of March next year, and bet on the line of Labo cardboard peripherals and games like “Super Smash Bros.” for this.