Nintendo's Mobile Revenue Grew 6% to $85 Million in Q1 2019, Dragalia Lost Boosted Overall Growth

Nintendo's Q1 2019 represented its third-best quarter of mobile gaming revenue since entering the space in early 2016, Sensor Tower Store Intelligence estimates show. According to our data, the publisher's mobile games grossed approximately $85 million worldwide last quarter on the App Store and Google Play, up 6 percent year-over-year from $80 million in Q1 2018. This was behind only 4Q18 and 1Q17 at $112.3 million and $106.6 million, respectively.

A Mixed Quarter for Per-Title Growth

The publisher's top performer for the quarter was Fire Emblem Heroes, originally launched in February 2017, which brought in an estimated $46.6 million of player spending globally. This was off 30 percent from Q1 2018 when the title grossed approximately $66.2 million worldwide. Quarter-over-quarter growth for the title was positive at 5 percent, up from $44.3 million in 4Q18.

Despite posting a Q/Q decline in revenue of 55 percent from 4Q18, bringing in $23.4 million compared to $52.5 million the previous quarter, the presence of Nintendo's latest mobile title, Dragalia Lost, prevented the company from ending Q1 down 23 percent from 1Q18. Still, the title's underperformance in its second full quarter of availability, despite launching in additional markets, is surely receiving intense focus from the publisher.

On a positive note, Q1 saw a resurgence in spending by Animal Crossing: Pocket Camp players. Gross revenue for the title last quarter topped $12.9 million worldwide, a Y/Y increase of 30 percent from $9.9 million in 1Q18.

Super Mario Run, Nintendo's first mobile game, accounted for just 3 percent of the company's smartphone and tablet revenue last quarter, grossing an estimated $2.3 million. This was 41 percent less than the $3.9 million players spent in the title during 1Q18. Its Q/Q growth, however, was plus 15 percent.

New Titles Brighten Q3-Q4 Outlook

Nintendo currently has two new mobile titles slated for this year: Dr. Mario World and Mario Kart Tour, arriving in mid- and late-2019, respectively. These releases, based on established, popular IP from the company, will likely make significant contributions to Nintendo's 3Q19 and 4Q19 revenue on mobile, with Mario Kart Tour representing perhaps its highest-potential mobile launch yet. We will be watching both launches, along with the continuing performance of Nintendo's existing mobile titles, closely.