Nintendo's hardware sales forecast has been revised downward again, as Switch console and game sales fell short of projections. For the first nine months of the fiscal year, dedicated game console sales dropped 31.7% year-over-year to 895.5 billion yen (approximately $5.7 billion), reflecting decreased sales of both the Switch and its software. Mobile and IP-related revenue also declined by 33.9% year-over-year to 49.7 billion yen (approximately $320 million), primarily due to unfavorable comparisons with 2023's highly successful The Super Mario Bros. Movie. This resulted in a 27.3% year-over-year decrease in gross profit to 565.5 billion yen (approximately $3.6 billion).

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Nintendo has again lowered its financial forecast for the fiscal year ending March 2025, marking the second consecutive downward revision. The company anticipates even lower Switch hardware sales than previously projected, reducing its forecast by 1.5 million units to 11 million, and software sales by 10 million units to 150 million.

While sales declines were expected for the eight-year-old Switch, the drop is steeper than Nintendo anticipated. Nevertheless, the Switch has achieved remarkable success with over 150 million units sold. While surpassing the PlayStation 2's 160 million sales to become the best-selling console may be unlikely, the Nintendo DS's 154 million sales are 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-over-year at 9.54 million units, and software sales decreased by 24.4% year-over-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 sold 1.4 million units.

Super Mario Party Jamboree performed exceptionally well, exceeding the sales pace of previous Mario Party titles on the Switch within its first 11 weeks of release (October 17, 2024).

Significantly, active Switch users reached a record high of 129 million annual players in 2024, indicating continued engagement despite the console's age. Nintendo noted that while Switch unit sales declined, sales in some holiday weeks surpassed those of the previous year.

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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 company reiterated its announcement of the Switch 2's 2025 release and plans a dedicated Switch 2 Direct presentation on April 2nd, along with hands-on events globally.