A sharp decline in sales for Nintendo
With a long history in the video game industry, Nintendo is a key player in this industry. However, the company is facing a decline in sales of its Switch console, which is more pronounced than expected. Indeed, sales in the last two quarters reached 4.72 million units, compared to 6.84 million in the previous year.
A downward revision of sales forecasts
Faced with this situation, Nintendo has had to revise its sales forecasts. Initially estimated at 13.5 million consoles for the year, the company is now counting on 12.5 million, a drop of one million units. Moreover, it also cut its revenue forecast by 5.2%, to 1.28 trillion yen ($8.41 billion). Despite this, Nintendo expects to maintain the same net profit as the previous year.
Factors of hope for Nintendo
Despite a difficult year, Nintendo has seen some positives. Notably thanks to the launch of the Lite version of the Switch: the Hyrule edition and other hardware and software packages led to a slight increase in sales compared to the previous quarter. In addition, the success of games such as The Legend of Zelda: Tears of the Kingdom and Super Mario Bros. Movie helped maintain decent financial results for the fiscal year ending March 2024.
Hope with the Switch 2
With the Switch being Nintendo’s second best-selling console of all time, after the DS, it’s clear that its decline marks the end of an era. That’s why the company is betting a lot on its next console, the Switch 2. However, this will not be announced until the beginning of next year. It is therefore unlikely that Nintendo will see an improvement in its sales in the near future.
