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 game console sales plummeted 31.7% year-over-year to 895.5 billion yen (approximately $5.7 billion), reflecting decreased sales of both the Switch console and its software. Mobile and IP-related revenue also suffered, declining 33.9% year-over-year to 49.7 billion yen (approximately $320 million), primarily due to the challenging comparison with the highly successful 2023 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 downward revision. The company anticipates even lower Switch hardware sales, reducing its projection by 1.5 million units to 11 million, and software sales by 10 million units 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, surpassing 150 million units sold. While overtaking the PlayStation 2's 160 million sales to become the best-selling console of all time may be unlikely, the Nintendo DS's 154 million sales are within reach.
Nintendo characterized Switch and software sales in its third quarter (ending December 31, 2024) as "stable considering the platform's age." Overall Switch family sales decreased by 30.6% year-over-year to 9.54 million units, while software sales fell 24.4% year-over-year to 123.98 million units. However, Nintendo 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's performance is particularly noteworthy. Within its first 11 weeks (following its October 17, 2024 release), it outperformed previous Mario Party titles on the Switch.
Significantly, active Switch users reached an all-time high of 129 million annual players in 2024, indicating sustained player engagement despite the console's age. This bodes well for the upcoming Switch 2 launch.
Nintendo acknowledged the year-over-year decline in Switch unit sales but emphasized sustained consumer interest, noting that holiday season sales in some weeks even exceeded those of the previous year.
AnswerSee ResultsIn light of the financial report, investors eagerly anticipate the Switch 2's release. Nintendo confirmed upcoming releases for the original Switch: Xenoblade Chronicles X: Definitive Edition (March 20), and Pokémon Legends: Z-A and Metroid Prime 4: Beyond (both in 2025).
The Switch 2 was also mentioned, with Nintendo reiterating its planned 2025 release and referencing the January 16th hardware reveal video. A dedicated Switch 2 Direct is scheduled for April 2nd, promising further details, along with planned hands-on events globally.
