Nintendo Profit Down 55% as Sales Stall During Wait for Switch 2

 Posted on July 31, 2024  |  4 minutes  |  828 words  |  Jenniffer Sheldon

Nintendo saw its profit more than halve in its first fiscal quarter of the year as sales of the Switch console continued to fall while consumers await news on a successor console.

In its fiscal Q1 2025 earnings report, released Friday, the Japan-based video game giant reported selling 2.1 million Switches — a console that is now more than seven years old — from April 1 to June 30, down 46% year over year.

Revenue for the quarter was 246.6 billion Japanese yen and income was 80.9 billion. Analysts had forecast revenue of 289.61 billion yen and income at 70.73 billion yen, according to consensus data provided by LSEG, formerly Refinitiv.

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When Nintendo released its previous quarter results in May, Nintendo president Shuntaro Furukawa said, “We will make an announcement about the successor to Nintendo Switch within this fiscal year.” Nintendo’s fiscal year runs April 1 to March 31, meaning this announcement will occur by March 2025, according to Furukawa’s statement.

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Since then, there has been no update on the Switch 2 front, and, as Furukawa had warned would be the case, the Nintendo Direct presentation in June did not make mention of the device at all.

In a breakdown of its latest quarterly earnings results Friday, Nintendo stated there are no changes to its financial forecast for the fiscal year from what was published May, and doubled down on its current strategy until a Switch successor is announced.

“For hardware, by continuing to convey the appeal of Nintendo Switch, we try to not only put one system in every home, but several in every home, or even one for every person,” the video game company wrote. “Another objective is to continually release new offerings so more consumers keep playing Nintendo Switch even longer and we can maximize hardware sales. For software, in addition to Nintendo World Championships: NES Edition, which was released in July, we have other titles planned for release, such as ‘Emio – The Smiling Man: Famicom Detective Club’ (August) and ‘The Legend of Zelda: Echoes of Wisdom’ (September). Other software publishers also plan to release a wide variety of titles, and we will strive to invigorate the platform by continually introducing new titles in addition to the existing titles.”

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