The current financial landscape for Nintendo reveals some notable challenges for the Switch console, which has experienced a downturn in sales. This situation is not entirely surprising, considering the device has been on the market for nearly eight years. Despite the slowdown, Nintendo is preparing to unveil its forthcoming hardware, maintaining a sense of anticipation among its fans. Nintendo's recent financial update for the period ending September 30, 2024, indicates that the Switch family of systems, which includes the OLED and Lite versions, has seen a significant sales decline.
Compared to the previous year, overall sales have fallen by 31%, totaling around 4.72 million units sold. Software sales have also witnessed a decrease, dropping by 27.6% to reach 70.28 million units. The company has offered several insights into the reasons for this decline. Notably, the same timeframe in the previous fiscal year benefited from impressive sales volumes spurred by the release of The Legend of Zelda: Tears of the Kingdom and the box office success of The Super Mario Bros. Movie.
These events invigorated the dedicated video game platform business significantly. In contrast, the initial half of the current fiscal year lacked similar impactful releases, significantly affecting sales momentum. Furthermore, the lengthy presence of the Nintendo Switch in the market has led to a diminished interest in both its hardware and software offerings. While the financial documents do not address the forthcoming console, reports indicate that Nintendo's president, Shuntaro Furukawa, confirmed intentions to announce next-generation hardware well before April 1, 2025.
The lack of specifics has left enthusiasts eagerly awaiting additional information as the timeline for this reveal draws closer. In light of these recent sales trends, Nintendo has revised its financial projections for the remainder of the fiscal year. Expectations for software sales have been lowered by five million units, while hardware forecasts have been adjusted down by one million units. This shift appears to be a direct response to the recent decrease in sales rather than an indication of broader industry trends.
Following the announcement of these results, Furukawa noted the continued stability in demand for both hardware and software, highlighting the overall resilience of the platform. Looking ahead, analysts speculate that the Nintendo Switch 2 could launch by July 2025 and might come at a price point that is lower than competitors such as the PlayStation 5 and Xbox Series X.