Nintendo Downgrades Financial Forecast as Sales Plummet 31% to $6.1 Billion

Nintendo has unveiled its financial results for the nine-month period ending December 31, 2024, revealing a continued downward trend in both hardware and software sales as the company prepares for the upcoming release of the Switch 2. Key highlights from the report include a 31.4% year-over-year decline in net sales to ¥956.2 billion ($6.1 billion) and a 41.9% decrease in net profit to ¥237.1 billion ($1.5 billion). Hardware sales fell by 30.6% to 9.5 million units, while software sales dropped by 24.4% to 123.8 million units. The company has revised its sales forecast for the fiscal year, expecting ¥1.1 trillion ($7 billion) in sales, down 7% from the previous forecast, and ¥270 billion ($1.7 billion) in net profit, down 10% from the previous forecast. Dedicated platform sales declined by 31.7% to ¥895.5 billion ($5.7 billion), while mobile and IP-related sales fell by 33.9% to ¥49.7 billion ($320 million). The Switch, Switch Lite, and OLED model shipped 2.74 million, 1.73 million, and 5.07 million units, respectively, with the OLED model experiencing a 37.9% year-over-year decline. Despite the decline in sales, Nintendo noted that the Switch has maintained stable sales given its age. Software sales declined by 24.4% year-over-year, but new titles such as The Legend of Zelda: Echoes of Wisdom and Super Mario Party Jamboree saw steady growth. Super Mario Party Jamboree sold 6.17 million units since its release, while The Legend of Zelda: Echoes of Wisdom sold 3.91 million units. Digital sales declined by 29% year-over-year to ¥245.8 billion ($1.5 billion), but sales of download-only software increased, with Nintendo recording stable revenue from Nintendo Switch Online. The company noted that 76.5% of sales were made overseas, with 43.6% in the Americas, 25.3% in Europe, and 7.6% in Japan. Looking ahead, Nintendo has revised its expectations for the fiscal year, forecasting 11 million units of hardware sales and 150 million units of software sales.