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

Nintendo's latest financial report reveals a downturn in Switch hardware and software sales, falling below initial expectations. For the first nine months of the fiscal year, dedicated game console sales dropped 31.7% year-on-year to 895.5 billion yen (approximately $5.7 billion). This decline is attributed to lower sales of both the Nintendo Switch console and its accompanying software. Mobile and IP-related income also suffered, decreasing by 33.9% year-on-year to 49.7 billion yen (approximately $320 million), primarily due to the tough comparison with 2023's highly successful The Super Mario Bros. Movie. Consequently, gross profit decreased by 27.3% year-on-year to 565.5 billion yen (approximately $3.6 billion).

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This marks the second consecutive downward revision of Nintendo's financial forecast for the year ending March 2025. The company now projects even lower sales for the Nintendo Switch, reducing its hardware sales expectation by 1.5 million units to 11 million and software sales by 10 million to 150 million. While sales declines were anticipated given the Switch is in its eighth year, the magnitude of the drop surpasses Nintendo's projections. Despite this, the Switch has achieved remarkable success, exceeding 150 million units sold. 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 the third quarter (ending December 31, 2024) as "stable, given the platform's eighth year." Overall Switch family sales decreased by 30.6% year-on-year to 9.54 million units, and software sales fell by 24.4% year-on-year to 123.98 million units. However, Nintendo highlighted strong performance from new titles: The Legend of Zelda: Echoes of Wisdom (3.91 million units), Super Mario Party Jamboree (6.17 million units), Mario Kart 8 Deluxe (5.38 million units), and Nintendo Switch Sports (2.63 million units) during the quarter. Mario & Luigi: Brothership also sold 1.4 million units.

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

Encouragingly, the number of active Switch players remains high, with 129 million annual playing users in 2024. This indicates continued engagement despite the console's age. Nintendo noted that despite year-on-year declines, the Switch continues to attract consumers, with some weeks during the holiday season exceeding sales from the previous year.

Given the financial results, the timely release of the Nintendo Switch 2 is crucial. Nintendo confirmed upcoming releases for the original Switch: Xenoblade Chronicles X: Definitive Edition (March 20th) and Pokémon Legends: Z-A and Metroid Prime 4: Beyond (scheduled for 2025). The company also reiterated the Switch 2's planned 2025 release, announced on January 16th, with a dedicated Switch 2 Direct presentation scheduled for April 2nd and hands-on events planned in various cities worldwide.