With Nintendo Switch 2 Waiting in the Wings, Sales of the Original Switch and Its Games Continue to Tumble

Nintendo has once again revised its hardware forecast downwards, as sales of the Nintendo Switch and its games fell short of expectations. In the first nine months of the current financial year, revenue from Nintendo's dedicated game console business dropped by 31.7% year-on-year, totaling 895.5 billion yen (approximately $5.7 billion). This decline is attributed to lower sales of both the Nintendo Switch and its software. Similarly, income from mobile and IP-related ventures decreased by 33.9% year-on-year to 49.7 billion yen (approximately $320 million), largely due to the challenging comparison with the success of 2023's blockbuster, The Super Mario Bros. Movie. Consequently, gross profit saw a 27.3% year-on-year decline to 565.5 billion yen (approximately $3.6 billion).

Nintendo has adjusted its financial forecast for the fiscal year ending March 2025, marking the second consecutive revision. The company now anticipates selling 11 million Switch units, a reduction of 1.5 million from its previous forecast, and expects to sell 150 million software units, down by 10 million. As the Nintendo Switch enters its eighth year on the market, a decline in sales was anticipated, yet the downturn has been more significant than Nintendo initially projected. Despite this, the Switch has achieved over 150 million units sold, a remarkable feat for Nintendo. While surpassing the sales record of Sony's PlayStation 2 (160 million units) may now be out of reach, the Nintendo DS' 154 million units remains a target within sight.

Nintendo described the sales performance of the Switch and its software in the third quarter ending December 31, 2024, as "stable given the fact that the platform is in its eighth year." Overall sales for the Nintendo Switch family of systems decreased by 30.6% year-on-year to 9.54 million units, while software sales 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 units), Super Mario Party Jamboree (6.17 million units), Mario Kart 8 Deluxe (5.38 million units), and Nintendo Switch Sports (2.63 million units) contributed positively during the quarter. Additionally, Mario & Luigi: Brothership sold 1.4 million units.

Super Mario Party Jamboree has emerged as a standout success, surpassing the sales pace of previous Mario Party titles on the Nintendo Switch, including Super Mario Party and Mario Party Superstars, within the first 11 weeks of its release on October 17, 2024. Importantly for Nintendo, as it gears up for the launch of the Switch 2 later this year, the number of annual playing users reached a record high of 129 million in 2024, indicating sustained engagement with the Switch platform even after nearly eight years since its debut.

"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.

Looking ahead, Nintendo has a lineup of upcoming titles for the original Switch, including Xenoblade Chronicles X: Definitive Edition set for release on March 20, and Pokémon Legends: Z-A and Metroid Prime 4: Beyond slated for 2025. In anticipation of the Nintendo Switch 2, scheduled for release in 2025, Nintendo provided a first look at the hardware in a video on January 16. Further details are expected to be unveiled during a Switch 2 Direct on April 2, accompanied by hands-on events in cities worldwide.