Nintendo Switch sales have dropped by 50%, and profits have declined significantly as anticipation builds for the upcoming successor device
Nintendo reported that sales of its aging Switch console nearly halved in the April-June first quarter, and profits plummeted, falling significantly below expectations.
During the quarter, the Kyoto-based gaming company sold only 2.1 million Switch units, which is currently in its eighth year. However, it maintained its full-year sales forecast of 13.5 million units.
The organization intends to disclose its successor device during the current fiscal year.
The operating profit decreased by 71% to 54.5 billion yen ($365 million), more than a third below the analysts’ expectations.
The mobile and intellectual property-related division also experienced a subpar performance, with revenue declining by 54% to 14.7 billion yen from the same period a year prior, when the success of the “Super Mario Bros.” film contributed to its profitability.
Serkan Toto, the proprietor of game industry consultancy Kantan Games, stated that Nintendo was overly optimistic about the current year.
He stated that the figures “increase the pressure on Nintendo about a Switch 2 reveal” and that the July-September quarter was also expected to be weak.
Nintendo’s pipeline of titles for this year is modest, with “The Legend of Zelda: Echoes of Wisdom” and “Mario & Luigi: Brothership” among the forthcoming titles.
A new “Super Mario” film will be released in April 2026. A live-action adaptation of “The Legend of Zelda” has also been announced by the organization.
Rising costs and a lack of pricing power are causing the games industry to struggle. This week, Bungie, a developer owned by Sony (6758.T), announced that it is reducing its personnel by nearly one-fifth.
Nintendo’s shares experienced a 2.3% decline in Tokyo before the earnings announcement and have since increased by 7.6% year-to-date.
$1 is equivalent to 149.0800 yen.
