Nintendo's hardware sales forecast takes another hit as Switch sales fall short of projections. For the first nine months of the fiscal year, dedicated video game console sales plummeted 31.7% year-over-year to 895.5 billion yen (approximately $5.7 billion), reflecting decreased sales of both the Nintendo Switch console and its software. Mobile and IP-related revenue also experienced a significant decline of 33.9% year-over-year, reaching 49.7 billion yen (approximately $320 million), primarily due to the challenging comparison with the exceptionally successful 2023 release of The Super Mario Bros. Movie. This resulted in a 27.3% year-over-year drop in gross profit to 565.5 billion yen (approximately $3.6 billion).
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Nintendo has again lowered its financial forecast for the fiscal year ending March 2025, marking the second consecutive revision. The company anticipates even lower Nintendo Switch hardware sales than previously projected, reducing its forecast by 1.5 million units to 11 million and software sales by 10 million to 150 million.
While sales declines were expected for the eight-year-old Switch, the magnitude surpasses Nintendo's initial predictions. Nevertheless, the Switch has achieved remarkable success, exceeding 150 million units sold. While surpassing the PlayStation 2's 160 million sales to become the best-selling console of all time might be a stretch, the Nintendo DS's 154 million sales are within reach.
Nintendo characterized Switch and software sales during the third quarter (ending December 31, 2024) as "stable, considering the platform's eighth year." Overall Switch family sales decreased by 30.6% year-over-year to 9.54 million units, with software sales down 24.4% to 123.98 million units. However, the company highlighted strong sales of new titles: 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 sold 1.4 million units.
Super Mario Party Jamboree stands out as a significant success, outpacing sales of previous Mario Party titles on the Switch within its first 11 weeks of release (October 17, 2024).
Crucially, for Nintendo's upcoming Switch 2 launch, active players are at an all-time high, with 129 million annual playing users in 2024. This indicates sustained player engagement despite the console's age.
Nintendo acknowledged the year-over-year decline in Switch unit sales but emphasized continued consumer interest, noting that holiday season sales in some weeks even surpassed those of the previous year.
AnswerSee ResultsGiven the recent financial report, investors eagerly anticipate the Switch 2's release. Nintendo highlighted upcoming Switch titles: Xenoblade Chronicles X: Definitive Edition (March 20 release) and Pokémon Legends: Z-A and Metroid Prime 4: Beyond (scheduled for 2025).
The Switch 2 was mentioned, with Nintendo reiterating its planned 2025 release and referencing the January 16th hardware reveal video. A dedicated Switch 2 Direct is planned for April 2nd, along with global hands-on events.
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