Q: Overall software sales, not just limited to big titles, were strong in the fourth quarter of the last fiscal year. Hardware sales were also good, and digital sales were flat compared to the previous quarter (the third quarter of the last fiscal year), staying at a very high level. Do you think this was affected by the resurgence of COVID-19? It looks like people's lives are getting back to normal in the United States and other countries. However, given these circumstances, what are the assumptions underlying the outlook for this fiscal year?
In the previous fiscal year, the number of consumers interested in Nintendo Switch expanded significantly after the release of Animal Crossing: New Horizons, resulting in the strong demand for both hardware and software through the first nine months, and we think the effects of that were seen in the fourth quarter as well. In addition to the main drivers of Animal Crossing: New Horizons and Ring Fit Adventure, the fourth quarter also featured very strong sales of our evergreen titles. From January through March 2021, sell-through of Nintendo titles like Mario Kart 8 Deluxe, Ring Fit Adventure, Super Mario Party, The Legend of Zelda: Breath of the Wild, New Super Mario Bros. U Deluxe, SUPER MARIO ODYSSEY, and Splatoon 2, among others, exceeded that of the same period of the previous year. We believe that one of the major causes for this is that consumers who purchased Nintendo Switch when Animal Crossing: New Horizons was released purchased one of these evergreen titles as their next game. Sales of our new title, Super Mario 3D World + Bowser’s Fury, were also strong, and overall software sales were very high throughout the fourth quarter. We consider that one of the factors underlying this rise in sales was the increase in demand for home entertainment due to staying at home.
And in terms of digital sales, consumers who purchased hardware during the year-end holiday season are relatively inclined to purchase their next game digitally, leading to a tendency for the ratio of digital sales in the fourth quarter to be higher than the third quarter. But even so, the fourth-quarter digital sales in the previous fiscal year were comparable to those in the third quarter, which indicates that purchasing software digitally has become quite widespread as an option for our consumers. With the level of momentum we're seeing in the business, our sales forecasts for this fiscal Financial Results Briefing for Fiscal Year Ended March 2021 (Conference Call) Nintendo Co., Ltd. Q&A Summary 3 year are based on the continuous promotion of already-released evergreen titles to all of our consumers including new ones. The financial forecast for this fiscal year is primarily based on the sales outlook for unreleased new titles as well as our evergreen titles, and does not take into much consideration the impact of COVID-19. We are paying close attention to any differences in consumption patterns that may emerge across regions as the situation with COVID-19 subsides.