Nintendo Raises Full-Year Switch Sales Forecast to 15.5 mn Units

Nintendo has announced an upward revision of its full-year Switch sales forecast to 15.5 million units, up from the previous estimate of 15 million units. The surge in sales was attributed to the company’s strategic efforts to maximize revenues from the aging console.
Nintendo gaming
As the hybrid home-portable Switch approaches its eighth year in the market, speculation mounts regarding Nintendo’s plans for new hardware in the near future. During an earnings briefing, Nintendo President Shuntaro Furukawa emphasized the company’s determination to sustain the momentum of the Switch business, Reuters news report said.

Despite experiencing an 8 percent decline in sales, with 13.74 million units sold in the first nine months of the financial year compared to the previous year, the Switch’s lifecycle has been prolonged by the success of blockbuster titles like “The Legend of Zelda: Tears of the Kingdom” and “Super Mario Bros. Wonder,” which collectively sold over 10 million units.

The Switch, available in various iterations including the handheld-only Switch Lite and a version featuring an OLED display, has emerged as a standout performer following the underwhelming performance of its predecessor, the Wii U. Its total sales now rank second only to the Nintendo DS handheld, surpassing the Wii.

Nintendo reported a record net profit of 408 billion yen for the April-December period, further underscoring the success and profitability of the Switch platform. Industry analysts, including Serkan Toto, founder of game industry consultancy Kantan Games, anticipate continued support for the current Switch model, buoyed by its extensive user base. Toto also anticipates the launch of a successor device later this year, speculated to be priced around $400.

The robust performance of the Switch and Nintendo’s optimistic sales forecast signal a promising outlook for the video gaming giant as it navigates the ever-evolving landscape of the gaming industry.

Nintendo’s latest installment in the Super Mario Bros. series, “Super Mario Bros. Wonder,” has made a remarkable debut on the Nintendo Switch platform, marking the first entirely new side-scrolling installment in almost 11 years. The game achieved impressive sales of 11.96 million units during the nine months ending December 31, 2023.

Accompanying the success of “Super Mario Bros. Wonder,” sales also soared for other new titles released in the fiscal year. “The Legend of Zelda: Tears of the Kingdom” sold 20.28 million units, while “Pikmin 4” garnered 3.33 million units in sales. Additionally, the release of “The Super Mario Bros. Movie” in April positively influenced sales of Mario-related titles, notably boosting sales for “Mario Kart 8 Deluxe,” which reached 6.79 million units sold, summing up to a cumulative sales figure of 60.58 million units. This period saw a total of 24 million-seller titles, including those from other software publishers.

Despite entering its seventh year since launch, Nintendo Switch hardware sales remained robust, totaling 13.74 million units, albeit experiencing a 7.8 percent year-on-year decrease. Software sales also stayed strong, reaching 163.95 million units, though showing a 4.7 percent year-on-year decline.

In the digital business segment, downloadable versions of packaged software and add-on content for the Nintendo Switch performed well, alongside increased sales related to Nintendo Switch Online. Digital sales surged to 346.4 billion yen, marking an 11.7 percent year-on-year increase, partly attributed to the depreciation of the yen.

The mobile and IP-related business segment also witnessed substantial growth, with sales totaling 75.2 billion yen, marking a significant 93.4 percent year-on-year increase, primarily driven by revenue generated from “The Super Mario Bros. Movie.”

Overall, Nintendo reported total sales of 1,394.7 billion yen, with sales outside Japan accounting for 78.7 percent of the total, reaching 1,097.5 billion yen. Operating profit amounted to 464.4 billion yen, ordinary profit stood at 567.3 billion yen, and profit attributable to owners of the parent company totaled 408.0 billion yen.

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