Nintendo has once again revised its hardware forecast downwards, as sales of the Nintendo Switch and its games have fallen "below expectations." For the first nine months of the current financial year, sales from Nintendo’s dedicated game console business dropped by 31.7% year-on-year to 895.5 billion yen (approximately $5.7 billion). This decline is attributed to reduced sales of both the Nintendo Switch hardware and its software.

Additionally, income from mobile and IP-related ventures decreased by 33.9% year-on-year to 49.7 billion yen (approximately $320 million). This significant drop is largely due to the challenging comparison with the blockbuster success of The Super Mario Bros. Movie in 2023. As a result, Nintendo's gross profit fell by 27.3% year-on-year to 565.5 billion yen (approximately $3.6 billion).

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Nintendo has now lowered its financial forecast for the year ending March 2025, marking the second consecutive revision. The company anticipates selling fewer Nintendo Switch units than previously projected, adjusting its expectation from 12.5 million to 11 million units. Similarly, software sales expectations have been revised down by 10 million to 150 million units.

Despite being in its eighth year, the Nintendo Switch has experienced more significant declines than anticipated. However, with over 150 million units sold, the Switch remains a monumental success for Nintendo. Although surpassing Sony’s PlayStation 2, which sold 160 million units, to become the best-selling video game console of all time might be out of reach, the Nintendo DS' record of 154 million units is within sight.

Nintendo described the sales of the Switch and its software in the third quarter ending December 31, 2024, as "stable," considering the platform's age. Overall sales for the entire Nintendo Switch family of systems were down 30.6% year-on-year at 9.54 million units, while software sales declined by 24.4% year-on-year to 123.98 million units. Despite these declines, new releases such as 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) have performed well during the quarter. Mario & Luigi: Brothership has sold 1.4 million units.

Super Mario Party Jamboree has been particularly successful. Nintendo reported that in the first 11 weeks following its release on October 17, 2024, Super Mario Party Jamboree outpaced the sales of previous Mario Party titles on the Nintendo Switch, including Super Mario Party and Mario Party Superstars.

As Nintendo prepares to launch the Switch 2 later this year, the number of people playing the Switch has reached an all-time high, with 129 million 'annual playing users' in 2024. This indicates sustained interest in the platform even in its eighth year.

"Nintendo Switch unit sales declined year-on-year, but even in the eighth year since its launch in March 2017, Nintendo Switch continues to attract the interest of consumers, and sales in some weeks during the holiday season exceeded same-week sales of the previous year," Nintendo stated.

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Given Nintendo’s latest financial report, investors are eager for the Nintendo Switch 2 to be released sooner rather than later. Nintendo still has several titles planned for the original Switch, including Xenoblade Chronicles X: Definitive Edition, scheduled for March 20, and Pokémon Legends: Z-A and Metroid Prime 4: Beyond, both set for release in 2025.

Nintendo Switch 2 was mentioned in the report, though no new information was disclosed. "On January 16, we announced that Nintendo Switch 2, the successor to Nintendo Switch, will be released in 2025," Nintendo stated. "On the same day, we offered a first look at Nintendo Switch 2 in a video introducing the hardware."

Nintendo plans to hold a Switch 2 Direct on April 2 to reveal more details and will also conduct hands-on events in cities worldwide.