Nintendo has reported a significant drop in profits for the April-June quarter of 2024, with a 55% decline compared to the same period last year. The Japanese gaming giant’s net profit fell to 80.9 billion yen ($543 million), down from 181 billion yen a year earlier. This sharp decrease is attributed to declining sales of its aging Switch console and game software.
During this quarter, Nintendo sold 2.1 million units of its flagship Switch consoles, a 46% drop from the 3.91 million units sold in the same period last year. The decline in hardware sales was accompanied by a 41% decrease in software sales, with only 30.64 million units sold. Despite the release of popular titles in previous years, such as “The Legend of Zelda: Tears of the Kingdom,” no major new games were launched in this quarter, contributing to the slump.
The Switch, now in its eighth year, has seen its sales momentum wane as it approaches the end of its lifecycle. Investors are eagerly awaiting news of a successor to the Switch, which Nintendo has indicated will be announced before April 2025. The company has maintained its forecast to sell 13.5 million units of the existing Switch model in the current fiscal year.
Nintendo Switch 2017
In response to the declining sales, Nintendo has been diversifying its revenue streams by licensing its intellectual property for use in movies and theme parks. The company is also working on an animated Super Mario movie, set for release in 2026, and plans to open a Nintendo Museum in Kyoto later this year.
Despite the current challenges, Nintendo remains optimistic about its future, with a lineup of new games featuring beloved characters like Mario and Donkey Kong set to be released in the coming months. The company is committed to reinvigorating its gaming business and maintaining its position as a leader in the industry.
