❘ Published: 2023-05-09T11:33:24
❘ Updated: 2023-05-09T11:33:34
Following a slow Holiday season, Nintendo has forecasted that Switch sales will continue to decline in the coming twelve months.
The Nintendo Switch has performed excellently for Nintendo. With over 125 million units sold the Switch is the third best-selling games console of all time.
The hybrid console has managed to outsell the Game Boy, PlayStation 4, and even the Wii. Only two consoles have outsold it with the DS reaching 154 million sales and the PlayStation 2 selling 155 million units.
However, Nintendo has now revealed that it isn’t so optimistic that the Switch’s success will continue for much longer.
Nintendo expects steep drop-off in Switch sales
In a financial report published on May 9, Nintendo revealed that Switch unit sales dropped 22% in 2023 financial year. The year prior it sold 23 million units whilst 2023 saw this drop to just short of 18 million.
Part of the reason for this decline was attributed to a lack of available parts with Nintendo blaming “shortages of semiconductors and other components.”
The report highlights that it did not experience the growth in sales during the Holidays that was expected following 2022’s strong showing.
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Nintendo isn’t anticipating the Switch’s fortunes changing anytime soon either. The Japanese console manufacturer forecasts Switch sales to decline further, dropping to 15 million in FY2024.
Zelda: Tears of the Kingdom is the Switch’s next big release.
This reduction in sales has been forecasted despite the release of several key titles. The Legend of Zelda: Tears of the Kingdom launches on May 12, Pikmin 4 in July, and both DLC expansions for Pokemon Scarlet and Violet in Fall and Winter respectively.
Although Nintendo believes the Switch’s sales are declining that isn’t to say that the Switch isn’t still profitable.
For the fiscal year ending March 2023, Nintendo reported a net profit of ¥432.7 billion, the equivalent of $3.2 billion USD. Looking ahead to FY2024, Nintendo anticipates an operating profit of ¥450 billion, roughly $3.3 billion USD.
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