Nintendo has once again lowered its hardware sales projections as Switch console and game sales fall short of targets.
During the first three quarters of its fiscal year, Nintendo's gaming hardware revenue dropped 31.7% year-over-year to ¥895.5 billion ($5.7 billion), driven by weaker-than-expected Switch system and software sales.
The company's mobile and IP-related income similarly declined 33.9% to ¥49.7 billion ($320 million), largely due to the tough comparison with 2023's breakout success The Super Mario Bros. Movie.
These results contributed to a 27.3% decrease in gross profits, which totaled ¥565.5 billion ($3.6 billion).
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This marks Nintendo's second consecutive downward revision of its fiscal year ending March 2025 forecasts. The company now anticipates selling 1.5 million fewer Switch consoles (11 million total) and 10 million fewer software units (150 million total) than previously projected.
While declining sales are expected for the nearly eight-year-old Switch platform, the drops have been more severe than Nintendo anticipated. Nevertheless, the Switch has surpassed 150 million units sold - a remarkable achievement that puts the handheld within reach of the Nintendo DS's 154 million lifetime sales, though catching PlayStation 2's 160 million record may prove difficult.
Nintendo described its Q3 2024 performance (ending December 31) as "stable for a platform in its eighth year," with total Switch family sales declining 30.6% year-over-year to 9.54 million units and software sales dropping 24.4% to 123.98 million units.
The company highlighted several strong software performers during the holiday quarter:
- The Legend of Zelda: Echoes of Wisdom (3.91 million)
- Super Mario Party Jamboree (6.17 million)
- Mario Kart 8 Deluxe (5.38 million)
- Nintendo Switch Sports (2.63 million)
- Mario & Luigi: Brothership (1.4 million)
Super Mario Party Jamboree has emerged as a particular standout, surpassing the sales pace of previous Switch Mario Party titles in its first 11 weeks after launch.
Notably, Nintendo reported record engagement with 129 million annual active users in 2024 - suggesting strong ongoing interest in the platform despite its age. The company noted that while overall Switch sales declined, weekly holiday season sales sometimes exceeded previous year figures.
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With these financial results, investor attention turns to Nintendo's Switch successor in development. While maintaining its Switch lineup through 2025 with titles like Xenoblade Chronicles X: Definitive Edition (March 20), Pokémon Legends: Z-A, and Metroid Prime 4: Beyond, Nintendo reiterated its January announcement about the Switch 2 launch window.
"On January 16, we announced that Nintendo Switch 2, the successor to Nintendo Switch, will be released in 2025," the company stated, confirming plans for a April 2 Direct presentation and global hands-on events to showcase the new hardware.
