Nintendo's hardware sales forecast takes another hit as Switch sales fall short of projections. The company's dedicated video game console business saw a 31.7% year-on-year decline in revenue for the first nine months of the fiscal year, reaching 895.5 billion yen (approximately $5.7 billion). This downturn is attributed to decreased sales of both the Nintendo Switch console and its associated software.

Mobile and IP-related income also suffered, dropping 33.9% year-on-year to 49.7 billion yen (approximately $320 million), largely due to unfavorable comparisons with the massive success of 2023's The Super Mario Bros. Movie. Consequently, gross profit decreased by 27.3% year-on-year to 565.5 billion yen (approximately $3.6 billion).

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For the second consecutive time, Nintendo has lowered its financial forecast for the fiscal year ending March 2025. The company anticipates even weaker Nintendo Switch hardware sales, reducing its projection by 1.5 million units to 11 million, and software sales by 10 million to 150 million.

While sales declines were expected for the eight-year-old Switch, the magnitude surpasses Nintendo's initial predictions. Nevertheless, the Switch has achieved remarkable success, exceeding 150 million units sold. While surpassing the PlayStation 2's 160 million sales may be unlikely, the Nintendo DS's 154 million sales record is within reach.

Nintendo characterized Switch and software sales in the third quarter (ending December 31, 2024) as "stable, considering the platform's age." Overall Switch family sales were down 30.6% year-on-year at 9.54 million units, and software sales decreased by 24.4% year-on-year to 123.98 million units. However, Nintendo highlighted strong sales of new titles: The Legend of Zelda: Echoes of Wisdom (3.91 million), Super Mario Party Jamboree (6.17 million), Mario Kart 8 Deluxe (5.38 million), and Nintendo Switch Sports (2.63 million) during the quarter. Mario & Luigi: Brothership also reached 1.4 million sales.

Super Mario Party Jamboree stands out as a significant success, outpacing sales of previous Mario Party titles in its first 11 weeks.

Crucially, Nintendo reports a record-high 129 million annual active users in 2024, indicating continued engagement despite the console's age. This bodes well for the upcoming Switch 2 launch.

Nintendo stated that while Switch unit sales declined, "even in its eighth year, the Nintendo Switch continues to attract consumer interest, with sales exceeding those of the previous year on some weeks during the holiday season."

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Given the financial report, investors eagerly await the Switch 2's release. Nintendo confirmed upcoming releases for the original Switch: Xenoblade Chronicles X: Definitive Edition (March 20), and Pokémon Legends: Z-A and Metroid Prime 4: Beyond (2025).

The Switch 2 was mentioned, with Nintendo reiterating its planned 2025 release and an upcoming April 2nd "Switch 2 Direct" presentation, along with global hands-on events.