Nintendo Profits Tumble Amidst Switch Sales Decline, Adjusts Forecasts
Nintendo's profits have plummeted as sales of its popular Switch console falter, prompting the Japanese gaming giant to revise its full-year financial projections.
For the nine-month period ending December 2023, Nintendo reported a 42% year-over-year decline in net profit, totaling 237 billion yen ($1.5 billion). Sales revenue also dropped significantly by 31%, reaching 956 billion yen ($6 billion).
The company attributed the downturn primarily to a slowdown in Switch console sales, which fell from 13.7 million units during the same period last year to 9.54 million this year. Consequently, Nintendo has adjusted its full-year Switch sales target to 11 million units, down from its previous forecast of 12.5 million.
Software sales also witnessed a decline, with the company reporting a decrease from 164 million units sold in the previous year to approximately 124 million units in the current period. However, the "Super Mario Party Jamboree" and the latest installment of the "Legend of Zelda" franchise emerged as bright spots, selling 6.17 million and 3.4 million units, respectively.
Despite the recent decline in Switch sales, Nintendo remains optimistic about the platform's long-term potential. The company highlights that the installed base of Switch users still exceeds 100 million worldwide.
Nintendo's focus is now shifting towards the successor to the Switch, tentatively known as Switch 2, which is scheduled to launch later this year. The company is actively hosting hands-on events for the new console globally, starting from April.
Additionally, Nintendo anticipates that the opening of Super Nintendo World at Epic Universe in Orlando, Florida in May will further enhance the appeal of its content.