Nintendo has revised its fiscal forecast downward due to declining Switch hardware and software sales. The company’s financial report for the six months ended September 30, 2024, reveals a significant drop in sales.
Key Points
1. Switch hardware sales: 4.72M units (31% YoY decline)
2. Software sales: 70.28M units (27.6% YoY decline)
3. Consolidated net sales: 523.2B yen (34.3% YoY decline)
4. Operating profit: 121.5B yen (56.6% YoY decline)
5. Lifetime Switch sales: 146M units
6. Lifetime software sales: 1.3B units
Declining Sales
Switch hardware sales fell by 31% year-over-year to 4.72 million units, while software sales decreased by 27.6% to 70.28 million units. Consolidated net sales declined by 34.3% to 523.2 billion yen ($3.44 billion). Operating profit also took a hit, dropping 56.6% to 121.5 billion yen ($798.6 million).
Causes of Decline
Nintendo attributed the decline to the lack of a major release comparable to Tears of the Kingdom last year. However, some titles performed well, including The Legend of Zelda: Echoes of Wisdom, which sold 2.58 million units since September.
Lifetime Sales
The Switch has sold over 146 million units, with software sales surpassing 1.3 billion units. This puts the console on track to potentially become Nintendo’s best-selling system.
Revised Forecast
Nintendo has lowered its full-year forecast, expecting:
– Switch sales: 12.5 million units (down from 13.5 million)
– Net sales: 1.28 billion yen (down from 1.35 billion yen)
– Operating profit: 360 million yen (down from 400 million yen)
Digital Sales
Digital sales fell 26.5% to 159.9 billion yen, primarily due to decreased software sales. Mobile and IP-related business declined 43.3% year-over-year.
Nintendo’s downward revision comes amidst speculation about the Switch’s successor and raises questions about the console’s longevity.