Nintendo had a ton of interesting data to share during its Q1 earnings call. Other than reaching a record sales figure of 84 million for the Nintendo Switch and pretty much doubling its operating income, the Japanese console-maker revealed just how profitable its hardware is compared to rival platforms such as the PS4/PS5 and the Xbox Series X|S. It’s no secret that both Sony and Microsoft sell their console hardware at a loss and then make up for it from 1st party titles, third-party sales, and online services. However, that’s not quite the case for Nintendo.
As per the revenue figures released by the company for the FY2021 ending on 31st March, Nintendo made more than half of its revenue from the sale of Switch hardware while the remaining came from packaged games, digital downloads, and online services. In comparison, Sony only earned a total of 20% of its overall revenue from the sales of console hardware including the PS4 and PS5 in 2020 and early 2021.
Microsoft also earned less than 20% of its overall FY2021 revenue from the sales of console hardware while the rest came from 1st/3rd party titles and subscription services such as the Game Pass. This is despite the revenue from hardware increasing by a whopping 232% on account of the start of a new cycle with the Series X|S launch. Nintendo is well into the latter half of the lifecycle of the Switch console and is still making massive profits from hardware sales years after the device was launched.