Original Switch Sales Decline Amid Nintendo Switch 2 Anticipation

Nintendo has once again revised its hardware sales forecast downward, as both the Nintendo Switch and its games have fallen short of expectations. During the first nine months of the current financial year, revenue from Nintendo's dedicated game console business saw a significant decline of 31.7% year-on-year, totaling 895.5 billion yen (approximately $5.7 billion). This drop is primarily attributed to decreased sales of both the Nintendo Switch hardware and its software.

Similarly, income from mobile and IP-related ventures decreased by 33.9% year-on-year, amounting to 49.7 billion yen (approximately $320 million). This decline is largely due to the challenging comparison with the previous year, which benefited from the success of the blockbuster movie, The Super Mario Bros. Movie. As a result, Nintendo's gross profit fell by 27.3% year-on-year, reaching 565.5 billion yen (approximately $3.6 billion).

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In response to these trends, Nintendo has adjusted its financial forecast for the fiscal year ending March 2025. This marks the second consecutive downward revision, with expectations now set at selling 11 million Switch units, a reduction of 1.5 million from previous forecasts. Software sales projections have also 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 has surpassed Nintendo's initial predictions. Despite this, the Switch has achieved remarkable success, with sales exceeding 150 million units. Although surpassing the PlayStation 2's record of 160 million units to become the best-selling console of all time seems out of reach, the Nintendo DS' record of 154 million units is within sight.

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 decreased by 30.6% year-on-year to 9.54 million units. Software sales also fell by 24.4% year-on-year to 123.98 million units. However, new releases 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) have shown positive sales figures in the last quarter. Additionally, Mario & Luigi: Brothership has sold 1.4 million units.

Super Mario Party Jamboree stands out as a significant success, with sales surpassing those of previous Mario Party titles for the Nintendo Switch within the first 11 weeks of its release on October 17, 2024.

Importantly, as Nintendo gears up for the launch of the Switch 2 later this year, the number of active Switch users has reached an all-time high, with 129 million 'annual playing users' in 2024. This indicates a continued strong engagement with the platform, nearly eight years post-launch.

"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 the latest financial report, investors are eager for the Nintendo Switch 2 to be released sooner rather than later. Nintendo has outlined upcoming releases for the original Switch, including Xenoblade Chronicles X: Definitive Edition on March 20, and Pokémon Legends: Z-A and Metroid Prime 4: Beyond slated for 2025.

Nintendo briefly mentioned the Switch 2, reiterating its planned release in 2025 and mentioning a first look at the hardware in a video released on January 16. More details about the Switch 2 will be shared during a Switch 2 Direct on April 2, and Nintendo plans to host hands-on events in cities worldwide to further showcase the new console.