Nintendo was looking to eat away financially this year due to declining sales of its aging Switch, but things are going a little worse than expected. After selling fewer consoles than expected over the past two quarters (4.72 million units compared to 6.84 million units last year), the company lowered its console sales forecast from 13.5 million units to 12.5 million units. That’s a significant drop of 1 million units. The company also lowered its sales forecast by 5.2% to 1.28 trillion yen ($8.41 billion), believing that net profit would be at the same level as last year.
The company had decent financial results in its last fiscal year (ending March 2024), even though the Switch was first launched in 2017. The company achieved this feat primarily through the release of its highly anticipated game, The Legend of Zelda: Tears of the Kingdom. To a lesser extent, the release of the Super Mario Bros. movie.
However, the company reported, “There were no such special factors in the first half of the current fiscal year, and the number of units sold for both hardware and software decreased significantly compared to the same period last year, partly because Nintendo Switch was in its eighth year since its release.” It is stated in the book. IR explanatory material. However, there were some bright spots, such as the launch of Switch Lite: Hyrule Edition and other bundled hardware/software releases, which resulted in a slight increase in Switch sales compared to the previous quarter.
The Switch is Nintendo’s second-best-selling game console of all time after the DS, but its limits are definitely over. This means the company will spend a lot of money on its next-generation console, the Switch 2, but it won’t be announced until early next year, so sales are unlikely to improve in the near future. .
