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

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) due to decreased Switch and software sales. Mobile and IP-related income also suffered, declining 33.9% year-over-year to ¥49.7 billion (approximately $320 million), largely attributed to the tough comparison with 2023's highly successful The Super Mario Bros. Movie. This resulted in a 27.3% year-over-year drop in gross profit to ¥565.5 billion (approximately $3.6 billion).

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Nintendo has again lowered its financial forecast for the fiscal year ending March 2025, for the second consecutive time. 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 are expected for the eight-year-old Switch, the drop is steeper than anticipated. Nevertheless, the Switch has surpassed 150 million units sold, a remarkable achievement. 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 Q3 2024 (ending December 31, 2024) as "stable considering the platform's age." Overall Switch family sales were down 30.6% year-over-year at 9.54 million units, and software sales decreased by 24.4% year-over-year to 123.98 million units. However, strong sales of new titles like 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) were noted during the quarter. Mario & Luigi: Brothership also achieved 1.4 million sales.

Super Mario Party Jamboree stands out as a particular success, outpacing previous Mario Party titles on the Switch within its first 11 weeks of release (October 17, 2024).

Significantly, active Switch users reached a record high of 129 million annual players in 2024, indicating continued engagement despite the console's age. Nintendo highlighted that Switch sales exceeded those of the previous year during certain weeks of the holiday season.

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Given 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 20), and Pokémon Legends: Z-A and Metroid Prime 4: Beyond (2025).

The Switch 2 was also mentioned, with Nintendo reiterating its planned 2025 release and a dedicated Direct presentation on April 2nd to reveal more details, along with hands-on events globally.