Nintendo reported a substantial decline in both hardware and software sales for the first quarter of FY2025, marking a notable downturn in its financial performance. For the three months ending June 30, 2024, the company experienced a 46.5% drop in net sales, totaling ¥246.6 billion ($1.6 billion).
Net profit also fell dramatically by 55.3% to ¥80.9 billion ($542.9 million). This decline in sales was seen across all segments, including hardware and software, which saw decreases of 46.3% and 41.3%, respectively.
The decrease in Nintendo’s hardware sales was significant, with the company shipping only 2.1 million units of the Nintendo Switch, a 46.3% decline from the previous year.
Specifically, the standard Switch model sold 530,000 units (down 18.4%), the Switch Lite sold 330,000 units (down 23.3%), and the OLED model, despite being the top seller with 1.24 million units, experienced a dramatic 56.1% drop compared to the previous year. This decline is partly attributed to the Switch being in its eighth year since launch and a lack of major new releases.
Software sales also took a hit, with unit sales dropping by 41.3% to 30.64 million units. Despite the release of some new titles such as “Paper Mario: The Thousand Year Door” and “Luigi’s Mansion 2 HD,” which sold 1.76 million and 1.19 million units respectively, the overall software sales figures did not reach the previous year’s levels. Notably, “Princess Peach: Showtime” had a cumulative sell-through of over 1.3 million units.
Digital sales made up over half of the total software sales but also saw a decline, falling 32.6% year-on-year to ¥80.7 billion ($541.3 million). Despite this, Nintendo noted that sales from download-only software and Nintendo Switch Online remained stable, indicating that the proportion of digital sales had increased.
Looking forward, Nintendo’s outlook for the rest of the fiscal year remains unchanged despite the current downturn. The company continues to anticipate meeting its previously set expectations for the full year, as detailed in its financial report on May 7.
