Nintendo’s iconic Switch gaming console, which experienced
overwhelming demand during the COVID-19 pandemic, is now facing declining sales that are significantly impacting the company’s financial performance. The gaming giant’s latest earnings report, released on November 5, reveals concerning trends across multiple metrics.
The company reported a substantial 34% decrease in net sales over the past six months compared to the previous year’s period. Even more striking was the nearly 57% year-over-year reduction in operating profit after expenses. The Switch console itself, which carries a retail price of approximately $300, saw unit sales drop by 31% year-over-year, moving just 4.72 million units during the quarter. Software sales for the platform also declined significantly, falling almost 28% compared to the previous year, with approximately 70 million units sold.
This marks a dramatic shift from 2020, when the Switch was virtually impossible to find on store shelves. During the pandemic lockdowns, as people sought entertainment while confined to their homes, the console – originally released in 2017 – became one of many gaming systems that completely sold out. The situation was so extreme that resellers who managed to acquire multiple units were able to command prices hundreds of dollars above retail.
In response to the weakening demand, Nintendo has been forced to revise its sales projections downward for the remainder of the fiscal year. The company’s new forecast expects 12.50 million Switch hardware units to be sold, representing a reduction of 1 million units from their previous projection. Software sales expectations have also been lowered from 165 million to 160 million units.
Despite these challenges, Nintendo remains optimistic about the console’s future, noting in their earnings report that many users continue to engage with the Switch even as it enters its eighth year on the market. The company plans to maintain consumer interest through new game releases, including “Mario & Luigi: Brothership” scheduled for this month and “Donkey Kong Country Returns HD” slated for January 2025. Third-party publishers are also expected to continue supporting the platform with new titles.
Looking ahead, anticipation is building for the Nintendo Switch 2, which sources indicate may be announced in March 2025. The
next-generation console is reported to feature a larger display screen and enhanced HD gaming capabilities compared to its predecessor.
The current situation represents a complete reversal from the height of the pandemic, when the gaming industry as a whole experienced unprecedented demand. During that period, newly released consoles like Sony’s PlayStation 5 and Microsoft’s Xbox Series X and S faced similar inventory challenges, with units selling out within minutes of release. These shortages were exacerbated by a global chip shortage that affected manufacturing capacity across the gaming industry.
Nintendo’s strategy to address the sales decline includes not only new game releases but also efforts to maximize hardware sales through various initiatives. While acknowledging that both hardware and software sales fell below initial expectations for the first half of the fiscal year, the company remains committed to revitalizing the platform through continued software support and engagement with its user base.
The gaming giant’s struggle with Switch sales illustrates the challenging transition period faced by successful gaming platforms as they age and market conditions evolve, particularly following the unusual circumstances created by the pandemic-era gaming boom.