Nintendo has announced a 12% reduction in its annual sales forecast for the Switch console, now anticipating sales of 11 million units. This adjustment comes as the ageing console experiences a decline in momentum ahead of the anticipated launch of its successor later this year.
Despite diversifying into retail stores, theme parks, and film ventures, Nintendo continues to rely heavily on its console business. Company President Shuntaro Furukawa acknowledged, “While we think sales of hardware and software are solid for the eighth year, we did not achieve our plan.”
Between April and December, Nintendo sold 9.54 million Switch units, bringing the console’s lifetime sales to 150.86 million units. The forthcoming successor, set to be unveiled during a Nintendo Direct event on 2nd April, is expected to closely follow the design of its predecessor, which significantly revitalised Nintendo’s fortunes after the underperformance of the Wii U.
In light of these developments, Nintendo has also revised its operating profit forecast downward by 22.2%, now projecting 280 billion yen (approximately RM9.6 billion) for the fiscal year ending in March. Additionally, profits for the April to December period fell by 46.7% to 247.6 billion yen (around RM8.5 billion).
The decline in Switch sales is attributed to the console’s long lifespan and market saturation, as well as anticipation for the upcoming successor. Despite these challenges, Nintendo has achieved impressive numbers, with lifetime sales nearing the Nintendo DS’s 154 million units. However, it remains uncertain if the Switch will surpass the PlayStation 2’s all-time record of over 160 million units.
To reignite demand, Nintendo plans to launch the Switch 2 and expand its entertainment offerings, including the opening of Super Nintendo World in Orlando, Florida.
