Nintendo's hardware sales forecast takes another hit as Switch and game 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 (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, dropping 33.9% year-over-year to ¥49.7 billion (approximately $320 million), primarily due to the challenging comparison with 2023's highly successful The Super Mario Bros. Movie. This resulted in a 27.3% year-over-year decrease in gross profit to ¥565.5 billion (approximately $3.6 billion).
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For the fiscal year ending March 2025, Nintendo has again lowered its financial forecast, marking the second consecutive revision. The company anticipates even lower Nintendo 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 for the eight-year-old Switch were expected, 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 figure is within reach.
Nintendo characterized Switch and software sales in Q3 2024 (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, and software sales declined by 24.4% to 123.98 million units. However, Nintendo highlighted 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). 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 within its first 11 weeks of release.
Crucially, Nintendo reports a record-high 129 million annual active users in 2024, suggesting continued engagement despite the console's age. This bodes well for the upcoming Switch 2 launch.
Nintendo acknowledged the year-on-year decline in Switch unit sales but emphasized continued consumer interest, with some holiday weeks even surpassing previous year's sales.
AnswerSee ResultsIn light of the financial report, investor anticipation for the Switch 2 is high. 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 (2025).
The Switch 2 was also mentioned, with a planned April 2nd Direct showcasing further details and hands-on events scheduled globally.
