Nintendo's profits are dropping, with hardware sales dropped by 31.4% and software sales decreasing by 40 million units, as compared to last year.
Nintendo isn’t making as much money as before, and it’s mostly because people aren’t buying the Switch like they used to.
Since sales are slowing down, the company had to lower its expectations for the year, but Nintendo isn’t too worried. They’ve got big plans, like launching the Switch 2 later this year and bringing more fun stuff to their fans.
Let’s take a closer look at the situation.
Financial Performance of Nintendo in 2024
Nintendo didn’t have the best time from April to December 2024. Sales and profits took a hit, mostly because people aren’t as excited about the Switch anymore. It’s been around for a while, and demand is slowing down. Let’s take a closer look at the numbers.
Console sales went down by 30%, and game sales fell 24% compared to last year. Still, the Switch has been a massive hit, with over 150 million units sold so far.
Hardware Sales:
Nintendo made $1.5 billion in profit from April to December 2024, but that’s a big drop—42% less than last year.
Their net sales dropped by 31.4% compared to last year, bringing in about ¥956.2 billion (around $6 billion). Only 9.54 million units were sold, which is 30.6% fewer than the year before.
The reason behind this is pretty evident as we mentioned. The Switch is getting old, and fewer people are buying it.
Software Sales:
Their software sales went down too from 164 million units to around 124 million units. Even though they’ve dropped, some games are still really popular.
For example, "Super Mario Party Jamboree" sold 6.17 million copies, and the new "Legend of Zelda" game has sold 3.4 million copies since it came out in September.
Furthermore, games like "Mario Kart 8 Deluxe" has sold 67.35 million copies, and "Animal Crossing: New Horizons" has sold 47.44 million copies. These games keep players interested and engaged.
Despite a decline in sales, the Nintendo Switch maintains a strong user base, with over 100 million active players. This is because Nintendo has many popular games.
What’s Next for Nintendo?
In response to these challenges, Nintendo had to change its plans for the year ending in March 2025. Instead of making ¥300 billion in profit, they now expect about ¥270 billion ($1.7 billion). And instead of aiming for 12.5 million sales, they now think they’ll sell about 11 million.
Moreover, they’ve got some big plans for the future. The Nintendo Switch 2 is coming out later this year, and it’s got some cool upgrades.
The new version will have a bigger 8-inch screen, redesigned Joy-Con controllers with magnets, and it’ll work with all your old Switch games. Starting in April, Nintendo’s going to let fans try out the Switch 2 at global events, so everyone can get a hands-on look.
On top of that, they’re opening Super Nintendo World at Universal Orlando in May 2025. It’s going to be a theme park with awesome rides like Mario Kart and Donkey Kong, and it’s perfect for Nintendo fans to get into the world of their favorite games.
Overall, while Nintendo's profits are dropping, they have better plans, with Switch 2 set to release in 2025. It will have better hardware and some cool new games that aren't available anywhere else.