Nintendo's hardware sales forecast takes another hit as Switch sales fall "below expectations." The company's dedicated game console business saw a 31.7% year-on-year revenue drop to 895.5 billion yen (approximately $5.7 billion) for the first nine months of the fiscal year. This decline is attributed to lower sales of both the Nintendo Switch console and its software.
Mobile and IP-related income also suffered, decreasing by 33.9% year-on-year to 49.7 billion yen (approximately $320 million), largely due to unfavorable comparisons with the highly successful 2023 film, The Super Mario Bros. Movie. Consequently, gross profit dropped by 27.3% year-on-year to 565.5 billion yen (approximately $3.6 billion).
What's the Best Nintendo Switch Game?
Cast Your Vote!
New duel
1ST
2ND
3RDSee your ResultsFinish playing for your personal results or see the community’s!Continue playingSee results
For the fiscal year ending March 2025, Nintendo has further revised its financial forecast downward—for the second consecutive time. 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 drop is steeper than Nintendo initially projected. Nevertheless, with over 150 million units sold, the Switch remains a remarkable success. While surpassing the PlayStation 2's 160 million sales may be unlikely, the Nintendo DS's 154 million sales record is within reach.
Nintendo characterized Switch and software sales in the third quarter (ending December 31, 2024) as "stable considering the platform's age." Overall Switch family sales decreased by 30.6% year-on-year to 9.54 million units, and software sales fell by 24.4% 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 reached 1.4 million sales.
Super Mario Party Jamboree stands out as a significant success. In its first 11 weeks (following its October 17, 2024 release), it outperformed previous Mario Party titles on the Switch.
Crucially, active Switch players reached an all-time high of 129 million annual users in 2024, indicating 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 exceeding the previous year's sales.
AnswerSee ResultsGiven 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 20th) and Pokémon Legends: Z-A and Metroid Prime 4: Beyond (both scheduled for 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 planned for April 2nd, along with global hands-on events.
