TOKYO (AP) - Nintendo's profits have significantly decreased due to declining sales of its Switch console, leading the Japanese video game manufacturer to adjust its full-year financial forecasts lower. The Kyoto-based company, which is renowned for creating the Super Mario franchise, reported a profit of 237 billion yen ($1.5 billion) for the nine-month period from April to December, marking a substantial 42% drop compared to the same timeframe in the previous year.
In addition to the profit slump, Nintendo announced that its sales for the first nine months of the fiscal year fell by 31%, totaling 956 billion yen ($6 billion). The company did not provide detailed quarterly results, but the overall decrease highlights a significant shift in consumer interest and demand for its products. Due to these disappointing figures, Nintendo now anticipates a profit of 270 billion yen ($1.7 billion) for the fiscal year ending in March, down from its earlier forecast of 300 billion yen ($1.9 billion).
Sales of Nintendo consoles have also witnessed a stark decline, with the company selling 9.54 million units during the nine-month period, down from 13.7 million units sold last year. For the entirety of the fiscal year, Nintendo expects to sell only 11 million Switch consoles, a downgrade from its initial estimate of 12.5 million units. This downturn in console sales suggests a significant loss of momentum in a market that has become increasingly competitive.
Moreover, the sale of Nintendo game software has declined as well, with software sales dropping from 164 million units to nearly 124 million in the same period. Despite this general downturn, certain titles have maintained their popularity, notably "Super Mario Party Jamboree," which sold 6.17 million units. The highly successful "Legend of Zelda" game, which was released in September, also saw strong sales, moving 3.4 million units globally.
Nintendo acknowledged that while demand for the Switch console has waned, the device continues to attract a substantial number of new users, with the total number of Switch players surpassing 100 million. This persistent interest offers a glimmer of hope for the company as it looks forward to its next product launch.
Looking ahead, Nintendo is banking on the release of its successor, the Switch 2, which is scheduled to hit the market later this year. To build excitement around the new product, Nintendo has planned promotional events worldwide starting in April, allowing customers to trial the new console before its official launch.
Additionally, Nintendo's strategy for boosting its brand and reaching a broader audience includes the upcoming opening of Super Nintendo World, an amusement park set to debut in May at Epic Universe in Orlando, Florida. This attraction is expected to draw visitors and further enhance engagement with Nintendo's content and franchises.
The combination of these developments indicates that while Nintendo is facing challenges with its current console, it is taking proactive measures to improve its standing in the market, with new products and attractions on the horizon that may rejuvenate interest and sales in the coming years.
