Original Switch Sales Plummet Amid Nintendo Switch 2 Anticipation
Nintendo has once again revised its hardware forecast downward as sales of the Nintendo Switch and its games have not met expectations. For 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 was driven by significant decreases in both Nintendo Switch and software sales.
Similarly, income from mobile and IP-related ventures fell by 33.9% year-on-year to 49.7 billion yen (approximately $320 million), largely due to the challenging comparison against the success of 2023's blockbuster, The Super Mario Bros. Movie. As a result, Nintendo's gross profit saw a 27.3% year-on-year decrease to 565.5 billion yen (approximately $3.6 billion).
For the fiscal year ending March 2025, Nintendo has adjusted its financial expectations for the second time. The company now anticipates selling fewer Nintendo Switch units than previously projected, lowering its forecast from 12.5 million to 11 million units. Software sales expectations have also been revised down by 10 million units to 150 million.
Despite being in its eighth year, the decline in Switch sales has been more pronounced than Nintendo anticipated. However, 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 might be out of reach, the Nintendo DS' 154 million unit milestone is within sight.
Nintendo described the sales of Switch and software in the third quarter ending December 31, 2024, as "stable given the fact that the platform is in its eighth year." Overall sales for the Nintendo Switch family of systems decreased by 30.6% year-on-year to 9.54 million units, while software sales dropped by 24.4% year-on-year to 123.98 million units. Highlighting the quarter's performance, Nintendo noted strong sales of new titles 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). Mario & Luigi: Brothership sold 1.4 million units.
Super Mario Party Jamboree has been a standout success, surpassing the sales pace of previous Mario Party titles for Nintendo Switch, such as Super Mario Party and Mario Party Superstars, within the first 11 weeks of its release on October 17, 2024.
Importantly for Nintendo, as it gears up for the Switch 2 launch later this year, the number of annual playing users has reached a new high of 129 million in 2024. This indicates sustained engagement with the Switch platform even eight years post-launch.
Nintendo reported that despite a year-on-year decline in Switch unit sales, the console continues to attract consumer interest. During the holiday season, some weeks saw sales that exceeded those of the previous year.
Investors are eagerly awaiting the launch of the Nintendo Switch 2, which Nintendo confirmed will be released in 2025. The company plans to provide more details in a Switch 2 Direct on April 2 and will also host hands-on events in cities worldwide. Nintendo also highlighted 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, slated for 2025.
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