Nintendo Switch Sales Drop Amid Switch 2 Rumors

Nintendo has once again lowered its hardware sales projections as Switch console and game performance fell short of targets.

During the first three quarters of the fiscal year, Nintendo's dedicated gaming division revenue dropped 31.7% year-over-year to ¥895.5 billion ($5.7 billion), driven by weaker sales of both Switch hardware and software.

The company's mobile and IP licensing revenue also declined 33.9% to ¥49.7 billion ($320 million), largely due to difficult year-over-year comparisons following 2023's wildly successful Super Mario Bros. Movie.

Consequently, Nintendo's gross profit decreased 27.3% to ¥565.5 billion ($3.6 billion).

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This marks Nintendo's second consecutive downward revision of its financial outlook for the fiscal year ending March 2025. The company now expects to sell 1.5 million fewer Switch consoles (revised to 11 million) and 10 million fewer software units (adjusted to 150 million).

While sales declines are expected for the eight-year-old Switch platform, the drop exceeds Nintendo's initial projections. Despite this, the Switch's lifetime sales crossing 150 million units represents phenomenal success. Though catching PlayStation 2's record 160 million sales appears unlikely, surpassing Nintendo DS's 154 million milestone remains within reach.

Nintendo noted Switch hardware and software sales showed "stability considering the platform's maturity" during the quarter ending December 31, 2024.

Total Switch family sales declined 30.6% year-over-year to 9.54 million units, while software sales dropped 24.4% to 123.98 million units. However, Nintendo highlighted strong performances from new releases including The Legend of Zelda: Echoes of Wisdom (3.91 million), Super Mario Party Jamboree (6.17 million), Mario Kart 8 Deluxe (5.38 million), Nintendo Switch Sports (2.63 million), and Mario & Luigi: Brothership (1.4 million).

Super Mario Party Jamboree emerged as a standout success, with Nintendo reporting its sales outpaced previous Switch Mario Party titles during the first 11 weeks after its October 2024 launch.

In an encouraging sign ahead of Switch 2's upcoming release, Nintendo reported record engagement with 129 million annual active users in 2024 - demonstrating sustained interest nearly eight years post-launch.

"While Switch unit sales declined year-over-year, consumer interest remains strong," Nintendo stated. "Certain weeks during the holiday season even saw higher sales than the previous year."

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With Nintendo's financial performance softening, investors are eager for Switch 2's timely launch. However, Nintendo still has notable Switch titles scheduled, including Xenoblade Chronicles X: Definitive Edition (March 20), Pokémon Legends: Z-A (2025), and Metroid Prime 4: Beyond (2025).

While providing no new details, Nintendo confirmed plans revealed January 16 about Switch 2's 2025 release: "We introduced Nintendo Switch 2, the successor to Nintendo Switch, and provided its first official look."

The company will share more Switch 2 information during an April 2 Direct presentation and through global hands-on events.