Nintendo has once again revised its hardware forecast downwards due to sales of the Switch and its games falling short of expectations. In the first nine months of the current financial year, revenue from Nintendo’s dedicated game console business saw a significant drop of 31.7% year-on-year, totaling 895.5 billion yen (approximately $5.7 billion). This decline was primarily driven by reduced sales of both the Nintendo Switch hardware and its software.
Additionally, income from mobile and intellectual property ventures fell 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 for the period decreased by 27.3% year-on-year, reaching 565.5 billion yen (approximately $3.6 billion).
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For the fiscal year ending March 2025, Nintendo has revised its financial forecast downwards for the second consecutive time. The company now expects to sell fewer Nintendo Switch units than previously anticipated, adjusting its forecast from 12.5 million to 11 million units. Similarly, the software forecast has been lowered by 10 million to 150 million units.
Given that the Nintendo Switch is now in its eighth year, a decline in sales was anticipated, though the extent of the downturn was more significant than Nintendo had predicted. 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 may be out of reach, the Nintendo DS' record of 154 million units is within striking distance.
Nintendo described the sales of the Switch and its software during the third quarter ending December 31, 2024, as "stable," considering the platform's age. Overall sales for the Nintendo Switch family of systems dropped 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. Despite these declines, new releases such as The Legend of Zelda: Echoes of Wisdom (3.91 million), Super Mario Party Jamboree (6.17 million), Mario Kart 8 Deluxe (5.38 million), and Nintendo Switch Sports (2.63 million) performed well in the three-month period. Mario & Luigi: Brothership has sold 1.4 million copies.
Super Mario Party Jamboree, in particular, has emerged as a major success. Nintendo reported that in the first 11 weeks following its release on October 17, 2024, the game outsold previous Mario Party titles for the Nintendo Switch, including Super Mario Party and Mario Party Superstars.
Looking ahead, as Nintendo prepares to launch the Switch 2 later this year, the number of active Switch users reached a record high of 129 million in 2024. This indicates a continued interest in the Switch, even as it approaches its eighth anniversary.
“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.
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In light of Nintendo's latest financial report, investors are eager for the Nintendo Switch 2 to be released as soon as possible. However, Nintendo has upcoming titles 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 briefly mentioned the Switch 2, reaffirming its planned release in 2025. “On January 16, we announced that Nintendo Switch 2, the successor to Nintendo Switch, will be released in 2025,” Nintendo said. “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, the company will organize hands-on events in various cities around the world to showcase the new console.
