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

Nintendo's hardware sales forecast takes another hit as Switch sales fall short of projections. For the first nine months of the fiscal year, dedicated game console sales plummeted 31.7% year-over-year to ¥895.5 billion (approximately $5.7 billion), reflecting decreased sales of both the Nintendo Switch console and its software. Mobile and IP-related revenue also experienced a significant decline of 33.9% year-over-year to ¥49.7 billion (approximately $320 million), largely attributed to the challenging comparison with the phenomenal success of 2023's The Super Mario Bros. Movie. This resulted in a 27.3% year-over-year drop in gross profit to ¥565.5 billion (approximately $3.6 billion).

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Nintendo has again lowered its financial forecast for the fiscal year ending March 2025, marking the second consecutive downward revision. The company anticipates even lower Nintendo Switch hardware sales, reducing its projection by 1.5 million units to 11 million, and software sales by 10 million to 150 million.

While sales declines were expected for the eight-year-old Switch, the drop is steeper than Nintendo initially projected. Nevertheless, the Switch has achieved remarkable success with over 150 million units sold. While surpassing the PlayStation 2's 160 million sales to become the best-selling console of all time 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 considering the platform's age." Overall Switch family sales were down 30.6% year-over-year at 9.54 million units, and software sales decreased by 24.4% year-over-year to 123.98 million units. However, the company highlighted strong sales of new titles: The Legend of Zelda: Echoes of Wisdom (3.91 million), Super Mario Party Jamboree (6.17 million), Mario Kart 8 Deluxe (5.38 million), and Nintendo Switch Sports (2.63 million) during the quarter. Mario & Luigi: Brothership also sold 1.4 million units.

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

Crucially, active Switch users remain high, with 129 million annual players in 2024, indicating sustained engagement despite the console's age. Nintendo noted that Switch unit sales declined year-over-year, but holiday season sales in some weeks exceeded those of the previous year.

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Given the financial report, investors eagerly anticipate the launch of the Nintendo Switch 2. Nintendo confirmed upcoming releases for the original Switch: Xenoblade Chronicles X: Definitive Edition (March 20), and Pokémon Legends: Z-A and Metroid Prime 4: Beyond (2025). The company also reiterated the Switch 2's 2025 release date, promising a dedicated Direct presentation on April 2nd and hands-on events worldwide.