Nintendo Sees Drop in Sales: Is It Because of the Switch 2 Announcement?

Nintendo has shared its financial results for the nine months leading up to December 31, 2024. The company reported net sales of ¥956.2 billion (about $6.1 billion), which is a 31.4% decrease from the previous year. Net profit also fell by 41.9%, landing at ¥237.1 billion (around $1.5 billion). These declines were seen in both hardware and software sales, with hardware units dropping by 30.6% to 9.5 million and software units decreasing by 24.4% to 123.8 million.

In light of these numbers, Nintendo has adjusted its full-year forecasts. The company now expects sales to reach ¥1.1 trillion (approximately $7 billion), a 7% reduction from earlier predictions and a 31.2% decrease year-over-year. The net profit forecast has also been lowered to ¥270 billion (about $1.7 billion), which is 10% less than previous estimates and a 44.9% decline compared to the prior year.

Despite these challenges, Nintendo highlighted that the Switch remains popular, even as it enters its eighth year. The company noted that many people continue to play the console, with the number of active Switch players staying above 100 million. This ongoing engagement suggests that the Switch still holds a significant place in the gaming community.

Looking ahead, Nintendo is focusing on the upcoming launch of the Switch 2, set to release later this year. The company plans to host events worldwide starting in April, allowing people to try out the new console. Additionally, the opening of Super Nintendo World at Epic Universe in Orlando, Florida, scheduled for May, is expected to attract more interest in Nintendo’s offerings.

In summary, while Nintendo is facing financial hurdles with declining sales and adjusted forecasts, the company remains optimistic. The enduring popularity of the Switch and the anticipated release of the Switch 2, along with new attractions like Super Nintendo World, indicate that Nintendo is actively working to maintain its position in the gaming industry.