Nintendo’s Profits Plummet on Poor Switch Sales

Nintendo’s second-quarter ending March 2025 showed a sharp 69% drop in net profit, driven by softening demand for its Switch console, which, at seven years old, is ancient in technology terms.

The gaming giant changed its sales forecast for the console, now projecting 12.5 million units sold by year-end—much lower than an earlier forecast of 13.5 million. With revenue at $1.8 billion, slightly above expectations, the outlook remains poor as revenue fell 17% year-over-year, confirming the challenge of sustaining interest in the aging platform.

Investors are closely watching for any updates on a potential Switch successor, anticipated by March 2025. Nintendo has relied on its popular franchises to sustain Switch sales, leveraging releases like “The Super Mario Bros. Movie” and “The Legend of Zelda: Tears of the Kingdom” in the past fiscal year, which reignited some interest in the console. 

However, the boost appears to be losing momentum, with Nintendo reporting a drop in both hardware and software sales. The company sold 4.72 million Switch units in the first half of this fiscal year, a massive drop from the 6.84 million sold in the same period last year.

To offset tumbling console sales, Nintendo has been expanding its intellectual property into other avenues, with the next Super Mario movie scheduled for 2026 and is even venturing into theme parks. As the company deals with a maturing console market, the pressure to come up with a compelling new gaming system grows.