Nintendo faces significant financial headwinds as it approaches the end of the Switch's lifecycle, with declining sales and profits highlighting the urgent need for its next-generation console announcement.
Financial Performance and Forecast Adjustments
Nintendo has revised its financial projections downward, reducing its Switch sales forecast from 13.5 million to 12.5 million units for the fiscal year ending March 2025. The company's financial performance shows considerable strain, with revenue dropping to ¥276.7 billion ($1.8 billion) and net profit falling to ¥27.7 billion ($182 million) in the July-September quarter - representing a stark 69% decline in profits compared to the same period last year.
Current Switch Performance
The aging Switch console, now in its eighth year, is showing clear signs of market fatigue. Hardware sales have declined by 31%, with only 4.72 million units sold in the six months ending September 30, compared to 6.84 million units in the same period last year. Software sales have also taken a hit, decreasing by 28% to 70.28 million units.
Recent Game Performance
Despite the overall decline, certain titles continue to perform well. Mario Kart 8 Deluxe remains a standout success, adding 2.31 million units to reach an impressive total of 64.27 million copies sold. New releases have shown moderate success, with The Legend of Zelda: Echoes of Wisdom achieving 2.58 million units sold since its September launch, while Paper Mario Thousand-Year Door and Luigi's Mansion 2 HD have sold 1.94 million and 1.57 million units respectively.
Looking Forward
Nintendo has confirmed plans to announce its Switch successor before April 2025, though specific details remain under wraps. In the meantime, the company continues to support the current Switch platform with upcoming releases including Mario & Luigi: Brothership this week and Donkey Kong Country Returns HD in January 2025. Nintendo maintains its strategy of promoting multiple Switch units per household while working to maximize the platform's remaining potential.