Nintendo Caught Between Old and New: A Purgatory of Sales
Nintendo is facing a challenging situation with its eight-year-old Switch console and the upcoming next-gen Switch 2, a period that usually affects sales. The company has announced that it now expects to sell just 11 million consoles this fiscal year, down from the original forecast of 12.5 million. This decline is attributed to a dismal holiday period, where sales and profit dropped by a third from last year, with consumers likely waiting for the Switch 2 launch instead of buying the current model.
The company’s inability to maintain sales momentum with new games has also been a concern, with revenue in that area down 24.4 percent compared to the same three-month period last year. However, Nintendo is releasing a couple of new titles early in 2025, including Donkey Kong Country Returns and Xenoblade Chronicles X, before its reveal of the Switch 2 on April 2.
The reveal of the Switch 2 will take place on a special Nintendo Direct event and will be followed up with first-look experience events in cities around the world. The first ones will take place in New York City and Paris from April 4 to April 6, and more cities around North America, Europe, Oceania, and Asia will follow. Although Nintendo hasn’t said much about the new model so far, it has confirmed that it will be backwardly compatible with current Switch games.
Despite the challenges, Nintendo investors have not been too worried about falling sales due to high expectations for the Switch 2. However, the company will have to convince buyers that its next-gen console is a significant upgrade over the current Switch, ensure it has enough stock available to meet demand, and keep current Switch owners happy.
This is a daunting task, given that Nintendo has sold 150.86 million units since launch and boasts 129 million users playing annually. The Switch is expected to become Nintendo’s all-time best-selling console later this year when it passes the Nintendo DS, which has the company’s all-time sales record of 154.02 million units.
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