Nintendo has recently reported a slowdown in Switch hardware sales and indicated that no new hardware will be released before April 2024. This news comes as a surprise to fans and analysts alike, given the previous success of the Nintendo Switch console.
The company’s latest financial results reveal a decline in year-end console sales by 22%. Despite reaching a total of 125.62 million Switch consoles sold as of March 31, the annual sales figure fell short of expectations. Nintendo had set a year-start sales target of 21 million units, later revised to 18 million, but only managed to sell 17.97 million consoles during the 12-month period.
Nintendo’s forecast for the current fiscal year ending March 31, 2024, predicts a further 16.5% decline in console sales. The company anticipates selling 15 million units during this period, acknowledging the challenges of maintaining the same sales momentum as before. However, Nintendo remains committed to maximizing sales by aiming for prolonged consumer engagement with the Nintendo Switch.
In a statement, Nintendo expressed its intention to have more consumers continue playing the Nintendo Switch for longer durations. By fostering this sustained engagement, the company aims to achieve maximized sales. While acknowledging the growing difficulties in maintaining sales momentum in the console’s seventh year, Nintendo remains determined to bolster demand, particularly during the upcoming holiday season.
During a call following the release of the financial results, President Shuntaro Furukawa admitted that sustaining the Switch’s sales momentum would be challenging in its seventh year. He expressed some uncertainty about achieving the next 15 million unit sales target. Furukawa also confirmed that no new or upgraded hardware is factored into Nintendo’s annual forecast, hinting at a potential gap before the release of new hardware.
Best-Selling Nintendo Switch Games
*As of March 31, 2023 (compared to Dec 2022)
- Mario Kart 8 Deluxe – 53.79m (+1.79m)
- Animal Crossing: New Horizons – 42.21m (+0.62m)
- Super Smash Bros. Ultimate – 31.09m (+0.55m)
- Legend of Zelda: Breath of the Wild – 29.81m (+0.81m)
- Pokemon Sword/Shield – 25.82m (+0.14m)
- Super Mario Odyssey – 25.76m (+0.64m)
- Pokémon Scarlet & Violet – 22.1m (+1.49)
- Super Mario Party – 19.14m (+0.34m)
- New Super Mario Bros. U Deluxe – 15.41 (+0.66m)
- Ring Fit Adventure – 15.38m (+0.16m)
Despite the sales decline, Nintendo had two blockbuster releases during the fiscal year that performed exceptionally well. Both Splatoon 3 and Pokémon Scarlet and Violet recorded strong sales, with a combined total of 32.77 million units sold. However, the release of the highly anticipated game The Legend of Zelda: Tears of the Kingdom might not have the same impact on hardware sales as previous releases.
Some analysts predict that Nintendo will not release new hardware in the next 12 months. As a result, they anticipate a shrinkage in Nintendo’s valuation until the launch of the next-generation hardware. While the Nintendo Switch remains a popular console, it faces the challenge of maintaining sales without the release of new hardware.
Nintendo Switch already achieved distinction of best-selling Nintendo home console of all time. It’s surpassing previous record set by the Wii with 101.63 million units sold. However, it still has a way to go before matching the sales figures of the Nintendo DS, which sold 154.02 million units. When considering consoles beyond Nintendo’s own lineup, only the PlayStation 2 has outsold the Nintendo Switch, with 155 million units sold.
In addition to the remarkable hardware sales figures, Nintendo’s Switch has shipped a staggering 1.036 billion games since its launch in 2017. This number surpasses any other Nintendo console, with the DS coming closest at 948.7 million games shipped. The strong library of games has undoubtedly contributed to the popularity and success of the Switch.
Nintendo’s financial results for the fiscal year 2023 show a 5.5% decrease in net sales, amounting to 1,695 billion yen ($12.56 billion). Net profit also experienced a decline of 9.4%, reaching 432.7 billion yen ($3.2 billion). The company attributes the decline in Switch hardware sales to factors such as a shortage of semiconductors that impacted production until late summer and a relatively flat holiday sales season compared to the previous year.
Despite the decline in hardware sales, software sales for the Nintendo Switch remained robust. Throughout the fiscal year, the company sold 213.96 million units of software, representing an 8.9% decrease compared to the previous year. Notably, new releases like Pokémon Scarlet and Violet achieved significant success, shipping 22.1 million copies in just 4.5 months. Other titles such as Splatoon 3 and Switch Sports also contributed to the overall software sales figures.
Looking ahead, Nintendo has an exciting lineup of games planned to maintain interest in the platform. The highly anticipated release of The Legend of Zelda: Tears of the Kingdom is set to generate considerable buzz among fans. Additionally, titles like Pikmin 4 and add-on content for Pokémon Scarlet and Pokémon Violet, known as The Hidden Treasure of Area Zero, are in the pipeline. With a continuous stream of new titles and add-on content, Nintendo aims to invigorate the platform and sustain consumer engagement.
Nintendo’s report of a slowdown in Switch hardware sales and the absence of new hardware releases until April 2024 has raised concerns among fans and analysts. While the company acknowledges the challenges of maintaining sales momentum in the console’s seventh year, it remains committed to maximizing sales by prolonging consumer engagement. Strong software sales and upcoming game releases provide opportunities to keep the Nintendo Switch platform vibrant. Despite the current decline, Nintendo’s track record and dedication to innovation position it well for future success.
