Sales of Nintendo Switch Plummet As Fans Await Console's Successor
Nintendo has reported a significant drop in sales and profits for its ageing Switch console in the April-June quarter. The company sold just 2.1 million units, almost half of what it sold during the same period last year. Despite this, Nintendo maintained its full-year sales forecast of 13.5 million units for the Switch.
This news comes as the Switch enters its eighth year on the market, prompting speculation about a successor device which Nintendo has hinted will be announced within the current financial year ending March 2025.
Revenue Falls 46.5%
Operating profit for the quarter plunged 71% to 54.5 billion yen ($365 million), far below analysts' expectations. Revenue also took a hit, falling to 246.6 billion yen ($1.65 billion), which is a 46.5% decrease from the previous year. The dip in sales was worsened by a lack of blockbuster game releases in the quarter, with software sales also dropping 41% year-on-year to 30.64 million units.
The company’s mobile and intellectual property-related division also saw a significant decline, with revenue plummeting 54% to 14.7 billion yen. This segment had previously benefited from the success of the "Super Mario Bros." movie. Looking ahead, Nintendo hopes to boost its gaming business with upcoming releases like "The Legend of Zelda: Echoes of Wisdom" and "Mario & Luigi: Brothership," along with a new "Super Mario" film slated for April 2026 and a live-action movie for "The Legend of Zelda."
Industry experts, like Serkan Toto of Kantan Games, believe that these results increase pressure on Nintendo to reveal the highly anticipated Switch successor. Toto noted, "Nintendo were too optimistic about the current year," and predicted that the July-September quarter might also be weak.
Investors Awaiting Announcement Of Switch Successor
Investors are keenly watching for any announcements regarding the new device. The Switch is Nintendo's second-most successful console by unit sales, following the Nintendo DS. Throughout its life, the Switch has seen various iterations and updates, which have helped sustain its popularity. However, that momentum appears to be waning.
Nintendo's stock fell 2.3% in Tokyo ahead of the earnings announcement but has still gained 7.6% year-to-date. The company's strategy of licensing its intellectual property for movies and theme parks continues, yet it hasn't offset the decline in its core gaming business. The company is working on an animated "Super Mario" movie with Illumination, set for release in 2026, which Nintendo hopes will draw more users to its games.
