Nintendo anticipates a sales decline for its current Switch console as it prepares for the launch of the next-gen Switch 2. The company has revised its sales forecast from 12.5 million to 11 million consoles for the fiscal year, following a significant drop in sales and profits during the holiday period.
Nintendo Switch 2 full launch game list is here and it’s huge
Nintendo expects 11M Switch sales this year but the focus is on Switch 2
For the third fiscal quarter ended December 31, Nintendo reported a 30.6% year-on-year decrease in sales, selling only 4.82 million Switch consoles. This brings the total for the current fiscal year to 9.54 million units. Revenue from software has also declined by 24.4% compared to the same period last year, reflecting decreased consumer interest as they likely wait for the Switch 2 launch, expected sometime next year.
Nintendo plans to officially reveal the Switch 2 on April 2 during a Nintendo Direct event, with subsequent global first-look experience events, starting in New York City and Paris from April 4 to April 6. The company has confirmed that the new console will be backward compatible with current Switch games, although it has not provided details on pricing or a release date.
In its fiscal results, Nintendo reported revenue of 432.92 billion Japanese yen ($2.8 billion), falling short of the 498.22 billion yen expected. Net profit decreased by 6% year-on-year to 128.53 billion yen, compared to the anticipated 136.16 billion yen. The company has also lowered its net profit forecast for the year from 300 billion yen to 270 billion yen.
Nintendo’s longstanding success with the Switch, which has sold 150.86 million units since its launch, complicates the transition to the Switch 2. With 129 million active annual users, Nintendo must effectively persuade existing users to upgrade while keeping them engaged with current offerings.
Industry analyst George Jijiashvili thinks the challenge for Nintendo lies in managing the shift between the two consoles, stating, “The phenomenal success of the Switch is a double-edged sword.” He expects the Switch 2 to launch in the first half of 2025, with an estimated 14.7 million units sold that year.
Former PlayStation Studios head Shuhei Yoshida expressed his thoughts on the recent Switch 2 reveal, suggesting that it lacked surprises and could have been more impactful. During an interview with MinnMax, he noted, “I was surprised there were not many surprises. The only surprise to me was that mice thing that they showed.” He remains hopeful for innovative features that harness the full potential of the new console.
Nintendo’s continuing attempts to maintain interest in the existing Switch console have included releasing updated hardware editions and capitalizing on its popular IPs, such as Super Mario through film adaptations. However, momentum appears to dwindle as market anticipation grows for the successor model.
Featured image credit: Nintendo
