Nintendo was prepared to suck it up financially this year as sales of its aging Switch decline, but things are going a bit worse than it hoped. After selling fewer consoles than it expected over the last two quarters (4.72 million compared to 6.84 million last year), the company has downgraded its sales forecast from 13.5 million consoles to 12.5 million — a cool one million unit drop. The company also lowered its sales forecast by 5.2 percent to 1.28 trillion yen ($8.41 billion), thought it expects the same net profit as last year.
The company saw decent financials last fiscal year (ending in March 2024) despite the fact that the Switch was first released in 2017. It achieved that largely through the release of the much-anticipated The Legend of Zelda: Tears of the Kingdom game and to a lesser extent, the launch of the Super Mario Bros. Movie.
However, “there were no such special factors in the first half of this fiscal year and with Nintendo Switch now in its eighth years since launch, unit sales of both hardware and software decreased significantly year-on-year,” the company said in its IR explanatory materials. There were some bright spots, though, like a slight boost in Switch sales over last quarter due to the launch of the Switch Lite: Hyrule Edition and other bundled hardware/software releases.
The Switch is Nintendo’s second-best selling console of all time after the DS, but it has definitely run its course. That means the company will be banking heavily on its next-gen Switch 2 console, but it won’t be announced until early next year — so it’s not likely to see improved sales in the near future.
