Nintendo has uploaded the English translation of last week's Q&A session with their investors:
Here's an abridged version written by myself, for the full information visit Nintendo's official page.
Hardware (A1 and A4) - Nintendo was unable to produce as many Switch consoles as they wanted last fiscal year, hence the shortages in the Japanese market. Components for the current fiscal year are secured, but COVID-19 continues to pose a risk because it remains unclear how long the worldwide crisis lasts. The forecast assumes no major hickups.
Software (A1 and A4) - Game development via home office comes with large challenges and games might get possibly delayed in case that the corona crisis is prolonged or worsens. However, Nintendo's forecast assumes that first party titles can release as planned. (Sidenote: Yesterday's announcement of Paper Mario, scheduled for release in July, should be comforting for the people who like to assume the worst.)
Animal Crossing: New Horizons (A1 and A5) - Around 50% of the consumers who purchased AC:NH in Japan, the USA and Europe in March got a digital copy. This means that SuperData's estimate of 5m digital copies in March alone was surprisingly close. What played into the high digital share was that Nintendo originally anticipated lifetime sales of around 15m, but actual demand greatly exceeded their expectations right from the start. This explains both the low physical shipments of Animal Crossing in America and Europe (Japan alone got ~3m copies, leaving only ~3m for the rest of the world, a breakdown that I didn't think was realistic) as well as their in hindsight modest hardware forecast back in January (forecast for the fiscal year was adjusted up to 19.5m Switch consoles shipped, actual result was 21m).
Switch's lifecycle (A2) - Nintendo reiterates that Switch has just entered the middle of its lifecycle and that it is possible to aim for growth that is unlike any other hardware to date. (In other words, Switch's successor is still more than three years away.)
A3 - Nintendo answers a speculative question with common sense and is unsurprisingly vague because they aren't clairvoyants.
More emphasis on evergreens (A5 and A8) - Nintendo now considers their long term sellers even more important than in the past. Should go hand in hand with their answer to Q8 regarding an increased marketing budget. When the number of old titles grows and new games have to be advertised as well, it costs more money to cover all games eventually.
Digital business (A6) - Digital software sales are expected to continue to grow, albeit not at the rate seen in the most recent fiscal quarter because Nintendo understands that COVID-19 restrictions provided a boost, plus Animal Crossing is a game that users like to have installed on their console for quick daily access. Paid memberships for Nintendo Switch Online are above 15 million accounts (family memberships included). The number of consumers with a Nintendo account has exceeded 100 million.
China (A7) - Did not contribute significantly last fiscal year, is not expected to contribute much in the current fiscal year either. 2.37m Switch consoles were shipped to Other last fiscal year and China accounted only for a small part of that number. Not all that surprising when only three Switch games (NSMBU Deluxe, MK8 Deluxe, Super Mario Odyssey) were released over the course of the first four months of availability of the console, two of the aforementioned three titles weren't out until mid-March.
Mobile business (A9) - Nintendo is working on new applications, but is not ready to announce them at this point. No intent to release more applications than during any of the previous fiscal years.