Nintendo Adjusts Annual Projections Amid 31% Sales Decline to $6.1 Billion
By The company experienced a 30.6% drop in hardware and a 24.4% decrease in software sales.
Nintendo has unveiled its financial performance for the nine-month period concluding December 31, 2024, revealing a continued downturn in both hardware and software sales as the company prepares for the launch of the Switch 2 this year.
Here’s what you need to know:
The Figures
For the nine months ending December 31, 2024
- Net sales: ¥956.2 billion ($6.1 billion), a decline of 31.4% year-on-year
- Net income: ¥237.1 billion ($1.5 billion), a reduction of 41.9% year-on-year
- Hardware: 9.5 million units (a 30.6% decrease year-on-year)
- Software: 123.8 million units (a 24.4% drop year-on-year)
Projections for the Full Year:
- Sales: ¥1.1 trillion anticipated ($7 billion), down 7% compared to earlier projections and down 31.2% year-on-year
- Net income: ¥270 billion ($1.7 billion), a decrease of 10% from previous forecasts and down 44.9% year-on-year
Key Highlights
Nintendo saw a 31.7% decline in revenue from its dedicated platforms, totaling ¥895.5 billion ($5.7 billion), which includes hardware, software, and accessories.
Mobile and IP-related sales also faced a 33.9% drop, reaching ¥49.7 billion ($320 million), attributed to decreased revenue from the Super Mario Bros. Movie.
In terms of hardware, the Switch delivered 2.74 million units during the nine months ending in December 2024, representing a 19.4% decrease year-on-year compared to 3.4 million units sold during the same period in the prior fiscal year.
The Switch Lite sold 1.73 million units, which is a 20.5% decline from the previous 2.18 million units sold. However, Nintendo pointed out that sales of the Hyrule Edition console bundled with software “experienced steady growth” during the holiday season.
The OLED model had the highest shipment numbers among the three at 5.07 million units, though this indicated a 37.9% decline year-on-year compared to 8.17 million units sold during the nine months ending December 2023.
Nintendo noted that, despite this third-quarter slump in hardware and software sales, they have remained “stable” as the Switch enters its eighth year.
Regarding software, sales dropped by 24.4% year-on-year to 123.98 million units. Nonetheless, sales “grew consistently” for new releases such as The Legend of Zelda: Echoes of Knowledge and Super Mario Celebration Jamboree.
Super Mario Celebration Jamboree had a particularly successful launch, exceeding 5.6 million units within its first eleven weeks – outperforming its projections.