We were thrilled to witness Nintendo’s growth this morning as the company released its financial statements for the second quarter of the fiscal year ended March 2023. A truly outstanding metric. with us is the continued popularity of digital sales, with this mode buy now accounting for 49.3% of all software sales for the quarter.
This marks a slim percentage drop from its Q1 results for the year (where digital accounted for 53% of sales) although digital purchases were still up from what was seen in the previous fiscal year, with total This year’s digital sales now account for 51% of the total this time last year saw them at 45.1%.
For reference, Q1 of fiscal 2021 – including the initial global response to the COVID-19 pandemic – saw digital purchases peak at 55.6% of total sales. when we all turn to eShop in case none of the stores are open. What follows is something of a yo-yo effect, with the digital percentage dropping to the 30s with the world’s massive reopening before rising. generally sitting in the mid to high 40s, where it has mostly remained ever since.
It should be noted that the term ‘digital sales’ does not refer only to games. The percentage is for all things purchased digitally – downloadable versions of bundled software, download-only software, DLC, Nintendo Switch Online memberships, etc. – and therefore not fully reflect the state of the game sale.
This is the case even more so in this quarter report. Nintendo announced that sales of NSO members, DLC, and download-only content increased, accounting for 47.5% of the company’s total digital sales. Download-only software such as Kirby’s dream buffet and DLC included Mario Kart 8 Deluxe Booster Course have been particularly marked for their popularity with this growing number.
This being said, digital sales of other packaged software continue to account for about half of game sales. While it’s unlikely games will end their physical distribution anytime soon with numbers like these, the continued shift to digital could see the scale grow in the coming years.
