Nintendo expects to sell fewer Switch consoles than anticipated with the arrival of a new model.
Nintendo had prepared to face a challenging year financially due to the decline in sales of its Switch console, which is already showing signs of aging. However, the situation is turning out to be more difficult than expected.
Nintendo had prepared to face a financial decline this year due to the decrease in sales of its Switch console, but the situation has turned out to be more complicated than anticipated. In the last two quarters, the company sold 4.72 million units, a figure lower than the 6.84 million recorded in the same period the previous year. As a result, Nintendo has reduced its sales forecast from 13.5 million to 12.5 million consoles, representing a decrease of one million units.
Additionally, the company has adjusted its revenue forecast by 5.2 percent, bringing it to 1.28 trillion yen (approximately 8.41 billion dollars), although it expects to maintain the same net profit as the previous year. While the last fiscal year, which ended in March 2024, was relatively positive due to the successful launch of the highly anticipated game The Legend of Zelda: Tears of the Kingdom and, to a lesser extent, the Super Mario Bros. movie, Nintendo has indicated that "there were no special factors in the first half of this fiscal year, and with the Nintendo Switch in its eighth year since launch, hardware and software sales have decreased significantly compared to the previous year."
Despite these challenges, there were some positive aspects, such as a slight increase in Switch sales in the last quarter, driven by the release of the Switch Lite: Hyrule Edition and other hardware/software bundles. The Switch is Nintendo's second best-selling console, surpassed only by the DS, but it has reached its maturity point. This means that the company will place great hopes on the upcoming Switch 2, which is not expected to be announced until next year, suggesting that there will be no significant improvements in sales in the short term.