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 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 yen (approximately $320 million), primarily due to the challenging comparison with the highly successful 2023 release of The Super Mario Bros. Movie. This led to a 27.3% year-over-year decrease in gross profit, reaching 565.5 billion yen (approximately $3.6 billion).
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Nintendo has further revised its financial forecast for the fiscal year ending March 2025, marking the second consecutive downward 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 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 record might be challenging, surpassing the Nintendo DS's 154 million sales is within reach.
Nintendo characterized Switch and software sales in the third quarter (ending December 31, 2024) as "stable, considering the platform's eighth year." Overall sales for the Nintendo Switch family of systems decreased by 30.6% year-over-year to 9.54 million units, and software sales declined by 24.4% year-over-year to 123.98 million units. However, Nintendo highlighted strong sales of new titles, including 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 Nintendo Switch within its first 11 weeks of release (October 17, 2024).
Crucially, active Switch users remain high, with 129 million annual playing users in 2024. This indicates continued engagement despite the console's age.
Nintendo acknowledged the year-over-year decline in Switch unit sales but emphasized sustained consumer interest, with some holiday weeks exceeding sales from the previous year.
AnswerSee ResultsGiven the financial report, investor anticipation for the Nintendo 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 (both in 2025).
The Switch 2 was also mentioned, with Nintendo reiterating its planned 2025 release and referencing a January 16th hardware reveal video. A dedicated Switch 2 Direct is scheduled for April 2nd, along with global hands-on events.
