Advertisement
Nintendo reported significant declines in both revenue and profit for its fiscal first quarter ending June 30, primarily due to plummeting sales of its aging Switch console.
Key Financial Figures:
- Revenue: ¥246.6 billion ($1.65 billion) vs. ¥289.61 billion expected.
- Net Profit: ¥80.9 billion vs. ¥70.73 billion expected.
Sales Performance:
- Net sales dropped 46.5% year-on-year.
- Net profit fell 55.3%.
- Switch console sales were 2.1 million units, a 46% decrease from the previous year.
Challenges and Outlook:
The Nintendo Switch, now over seven years old, has experienced declining sales despite past efforts to rejuvenate interest through updated displays and popular games. Sales of Switch software also fell 41% year-on-year to 30.64 million units.
Future Plans:
- Nintendo has confirmed plans to announce a successor to the Switch within the current fiscal year, which ends in March 2025.
- The company maintained its forecast to sell 13.5 million units of the existing Switch model for the year.
Additional Strategies:
- Nintendo is working on licensing its intellectual property for various media, including an upcoming animated Super Mario movie set for release in 2026.
- The company also faces challenges in its mobile and intellectual property segments, with sales falling 54% year-on-year to ¥14.7 billion.
As the Switch’s popularity wanes and without new blockbuster releases, Nintendo is keenly focused on its next console launch and expanding its brand through other entertainment avenues.