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Nintendo Reports Decline in Switch Sales Amid Transition to New Console
Nintendo has released its financial results for the third fiscal quarter, which concluded on December 31. The report indicates that the company’s hardware sales for the Nintendo Switch dropped significantly, with 4.82 million units sold, marking a 30.1% decrease compared to the same quarter last year.
This decline in sales suggests a potential shift in the market as the anticipation builds around the upcoming Switch 2, which could be impacting current Switch sales momentum.
For the nine months leading up to December 31, 2024, Nintendo reported a total of 9.54 million Switch units sold, a reduction of 30.6% year-over-year. This decrease reflects a broader trend in consumer behavior as players await the next iteration of the popular console.
The release of new game titles has provided some relief to Nintendo’s software sales during this period. Notably, “The Legend of Zelda: Echoes of Wisdom,” released in September, has sold 3.91 million copies, while “Super Mario Party Jamboree,” launched in October, boasts sales of 6.17 million units. Additionally, “Mario Kart 8 Deluxe” continues to perform well, reaching 5.38 million units sold, contributing to an impressive cumulative total of 67.35 million units.
This surge in game sales is complemented by the emergence of 19 titles achieving million-seller status, including offerings from various other software publishers. Overall, hardware sales saw a 30.6% drop year-on-year, while software sales decreased by 24.4%, totaling 123.98 million units sold.
Performance Overview of the Nine-Month Period
The nine-month performance reflects a downturn compared to the previous fiscal year, which was buoyed by major releases such as “The Legend of Zelda: Tears of the Kingdom” and “Super Mario Bros. Wonder.” Despite this, the sales figures indicate that the Switch remains a viable platform even as it approaches its eighth year on the market.
In terms of digital sales, Nintendo reported a total of 245.8 billion yen, representing a 29.0% decline from the previous year, primarily due to decreased sales of downloadable Nintendo Switch titles.
In the mobile and intellectual property sector, while sales had risen dramatically the previous year thanks to audience engagement with “The Super Mario Bros. Movie,” they have since fallen to 49.7 billion yen—down 33.9% year-on-year—reflecting a slowdown in revenue from the film’s initial success.
Overall, Nintendo’s sales reached 956.2 billion yen, with international markets contributing 76.5% of the total, amounting to 731.5 billion yen. The operating profit was reported at 247.5 billion yen, with additional income resulting in an ordinary profit of 327.1 billion yen, and a profit attributable to the owners of the parent company amounting to 237.1 billion yen.
Despite below-expected hardware and software sales, the Nintendo Switch continues to maintain a dedicated consumer base. The company plans to release new products and software to further engage both existing and new players.
Upcoming Software Releases and Strategy
Nintendo’s strategy includes the release of popular titles such as “Donkey Kong Country Returns HD” in January, with a follow-up planned for “Xenoblade Chronicles X: Definitive Edition” in March. Various other publishers are also expected to contribute new titles, enriching the gaming landscape for the Switch platform.
In reaction to the current sales trends and market conditions, Nintendo has adjusted its financial forecasts originally issued in November 2024. This includes updated projections for Switch hardware and software sales for the fiscal year.
The Future of Nintendo Switch
Since its introduction in 2017, the Nintendo Switch has continued to captivate audiences, with over 129 million active players and nearing 150 million units sold globally. Nintendo recently presented the Switch 2 in a promotional video, with plans for public demonstrations set to commence in April.
Source
venturebeat.com