Nintendo's recent financial report reveals a downward revision of its hardware sales forecast, with Switch console and game sales falling short of expectations. For the first nine months of the fiscal year, dedicated game console business revenue dropped 31.7% year-over-year to 895.5 billion yen (approximately $5.7 billion), primarily due to decreased Switch and software sales. Mobile and IP-related income also experienced a significant decline of 33.9% year-on-year, reaching 49.7 billion yen (approximately $320 million), largely attributed to the strong performance of 2023's The Super Mario Bros. Movie. This resulted in a 27.3% year-on-year decrease in gross profit to 565.5 billion yen (approximately $3.6 billion).
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This marks the second consecutive downward revision of Nintendo's financial forecast for the fiscal year ending March 2025. The company now projects even lower sales for the Nintendo Switch, reducing its hardware sales forecast by 1.5 million units to 11 million and software sales by 10 million to 150 million. While sales declines were anticipated for the eight-year-old console, the drop is steeper than initially predicted. Despite this, the Switch has achieved remarkable success, surpassing 150 million units sold. While overtaking the PlayStation 2's 160 million sales may be challenging, surpassing the Nintendo DS's 154 million sales remains a possibility.
Nintendo characterizes Switch and software sales during the third quarter (ending December 31, 2024) as "stable" considering the console's age. Overall Switch family sales decreased by 30.6% year-on-year to 9.54 million units, with software sales declining by 24.4% to 123.98 million units. However, the company highlights strong performance from new releases: 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) during the quarter. Mario & Luigi: Brothership also reached 1.4 million units sold.
Super Mario Party Jamboree stands out, exceeding the sales pace of previous Mario Party titles for the Switch within its first 11 weeks of release. Importantly, Nintendo reports a record high of 129 million annual playing users in 2024, indicating continued engagement despite the console's age. Nintendo acknowledges the year-on-year decline in Switch unit sales but emphasizes continued consumer interest, with some holiday weeks even surpassing previous year's sales.
AnswerSee ResultsGiven the financial results, investor anticipation for the Nintendo Switch 2 is high. Nintendo highlights upcoming releases for the original Switch: Xenoblade Chronicles X: Definitive Edition (March 20 release) and Pokémon Legends: Z-A and Metroid Prime 4: Beyond (scheduled for 2025 release). The company confirms the Switch 2's 2025 release, previously announced on January 16th, and plans a dedicated Switch 2 Direct on April 2nd to reveal further details, along with global hands-on events.
