Nintendo has once again revised its hardware sales forecast downward, as the sales of the Nintendo Switch and its games have fallen short of expectations. Over the first nine months of the current fiscal year, the revenue from Nintendo's dedicated game console business has dropped by 31.7% year-on-year, reaching 895.5 billion yen (approximately $5.7 billion). This decline is attributed to lower sales of both the Nintendo Switch and its software.
Similarly, income from mobile and IP-related ventures has seen a 33.9% decrease year-on-year, totaling 49.7 billion yen (around $320 million). This drop is largely due to the challenging comparison with the previous year, boosted by the success of "The Super Mario Bros. Movie" in 2023. As a result, Nintendo's gross profit has decreased by 27.3% year-on-year to 565.5 billion yen (approximately $3.6 billion).
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Nintendo has now lowered its financial projections for the year ending March 2025, marking the second consecutive revision. The company anticipates selling fewer Nintendo Switch units than previously forecasted, adjusting its expectations from 12.5 million to 11 million units. Similarly, software sales forecasts have been revised down from 160 million to 150 million units.
Although the Nintendo Switch is now in its eighth year, the decline in sales has been more significant than Nintendo had anticipated. Nevertheless, the Switch has surpassed 150 million units sold, marking a phenomenal achievement for Nintendo. While overtaking Sony's PlayStation 2, which sold 160 million units, to become the best-selling console of all time may no longer be feasible, the Switch is within striking distance of the Nintendo DS's 154 million units.
Nintendo characterized the sales of the Switch and its software during the third quarter ending December 31, 2024, as "stable," considering the platform's age. Total sales for the Nintendo Switch family of systems declined by 30.6% year-on-year, reaching 9.54 million units. Software sales also fell by 24.4% year-on-year to 123.98 million units. However, Nintendo highlighted the strong performance of new titles like "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) during this period. "Mario & Luigi: Brothership" also sold 1.4 million units.
"Super Mario Party Jamboree" has emerged as a significant success. Nintendo reported that within the first 11 weeks of its release on October 17, 2024, the game outsold the initial sales pace of other Mario Party titles on the Nintendo Switch, including "Super Mario Party" and "Mario Party Superstars."
As Nintendo gears up for the launch of the Switch 2 later this year, it's noteworthy that the Switch's user base has never been larger, with 129 million annual playing users in 2024. This indicates sustained interest and engagement with the platform, even 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 latest financial report, investors are eagerly awaiting the release of the Nintendo Switch 2. Nintendo has several titles planned for the original Switch, including "Xenoblade Chronicles X: Definitive Edition," set for release on March 20, and "Pokémon Legends: Z-A" and "Metroid Prime 4: Beyond," both slated for 2025.
Nintendo Switch 2 was mentioned in the report, though no new details were provided. "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, giving fans an opportunity to experience the new console firsthand.
