Nintendo has once again adjusted its hardware sales forecast downwards, as the sales of the Nintendo Switch and its games have fallen short of expectations. In the first nine months of the current financial year, revenue from Nintendo's dedicated game console business dropped by 31.7% year-on-year, reaching 895.5 billion yen (approximately $5.7 billion). This decline is attributed to reduced sales of both the Nintendo Switch hardware and its software.
Additionally, income from mobile and intellectual property (IP) ventures decreased by 33.9% year-on-year to 49.7 billion yen (approximately $320 million), largely due to the challenging comparison with the previous year's success of The Super Mario Bros. Movie. As a result, Nintendo's gross profit saw a 27.3% year-on-year decrease, totaling 565.5 billion yen (approximately $3.6 billion).
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Nintendo has revised its financial forecast for the fiscal year ending March 2025, marking the second consecutive downward adjustment. The company now anticipates selling fewer Nintendo Switch units than previously projected, reducing its forecast by 1.5 million to 11 million units. Similarly, software sales expectations have been cut by 10 million to 150 million units.
Given that the Nintendo Switch is now in its eighth year, sales declines are anticipated, though they have exceeded Nintendo's projections. Despite this, the Switch has achieved remarkable success, with over 150 million units sold. While surpassing the PlayStation 2's 160 million units to become the best-selling console of all time seems out of reach, the Nintendo DS' 154 million units is still within sight.
Nintendo described the sales of Switch and software during the third quarter ending December 31, 2024, as "stable given the fact that the platform is in its eighth year." Overall, sales of the entire Nintendo Switch family of systems decreased by 30.6% year-on-year to 9.54 million units, while software sales fell by 24.4% year-on-year to 123.98 million units. However, new releases such as The Legend of Zelda: Echoes of Wisdom (3.91 million sold), Super Mario Party Jamboree (6.17 million sold), Mario Kart 8 Deluxe (5.38 million sold), and Nintendo Switch Sports (2.63 million sold) performed well during this period. Mario & Luigi: Brothership also sold 1.4 million units.
Super Mario Party Jamboree has emerged as a significant hit, surpassing the sales pace of previous Mario Party titles on the Switch within the first 11 weeks of its release on October 17, 2024.
As Nintendo gears up for the launch of the Switch 2 later this year, it's noteworthy that the number of Switch players has reached an all-time high, with 129 million 'annual playing users' in 2024. This indicates sustained interest in the Switch, nearly eight years after its initial release.
"Nintendo Switch unit sales declined year-on-year, but even in the eighth year since its launch in March 2017, Nintendo Switch continues to attract the interest of consumers, and sales in some weeks during the holiday season exceeded same-week sales of the previous year," Nintendo stated.
AnswerSee ResultsWith Nintendo's recent financial report, investors are eager for the Nintendo Switch 2 to be released as soon as possible. Nintendo has some exciting titles lined up for the original Switch, including Xenoblade Chronicles X: Definitive Edition, set to launch on March 20, and Pokémon Legends: Z-A and Metroid Prime 4: Beyond, both scheduled for 2025.
The Nintendo Switch 2 was mentioned, though no new information was disclosed. "On January 16, we announced that Nintendo Switch 2, the successor to Nintendo Switch, will be released in 2025," Nintendo stated. "On the same day, we offered a first look at Nintendo Switch 2 in a video introducing the hardware."
Nintendo plans to hold a Switch 2 Direct on April 2, where more details will be revealed. Additionally, hands-on events for the Switch 2 will be organized in cities worldwide.
