- Nintendo predicts a substantial turnaround in its financial performance, anticipating a 63% increase in turnover to 11.63b euros and a 7.6% rise in profit to 1.84b euros.
Nintendo, the renowned Japanese gaming company, has announced the imminent release of its latest console, the Nintendo Switch 2, with ambitious sales targets and strong expectations for market performance.
Officially unveiled at the beginning of April, the new console incorporates significant improvements designed to appeal to both new and existing gamers. These enhancements include a superior display, upgraded Joy Con controllers, increased storage capacity, and crucially, backward compatibility with original Nintendo Switch games.
The ability to play previously purchased titles is a strategic feature that not only maintains consumer loyalty but also provides added value to existing Switch owners considering the upgrade.
Despite the optimism surrounding the Switch 2, the sales performance of its predecessor, the original Nintendo Switch, has experienced a marked decline in recent times. In the most recent fiscal year, Nintendo sold 10.8 million units of the original console, a significant drop from the 15.7 million units sold the prior year.
Game titles maintain strong popularity
This downward trend has had a direct impact on the company’s financial results, with turnover decreasing by more than 30 per cent to 1,165 billion yen (approximately 7.1 billion euros) and profits falling 43 per cent to 278.8 billion yen (roughly 1.71 billion euros).
The contraction can be attributed in part to the anticipation and forthcoming launch of the Switch 2, which has inevitably slowed consumer demand for the older model.
During the previous fiscal year, Nintendo’s game titles maintained strong popularity. Notably, Super Mario Party Jamboree sold 7.48 million copies, Mario Kart 8 Deluxe reached 6.23 million, The Legend of Zelda: Echoes of Wisdom achieved 4.09 million, and Nintendo Switch Sports moved 3.16 million units.
Charting a new chapter
The figures underscore the enduring appeal of Nintendo’s first-party games and suggest that game sales will remain a critical revenue pillar, especially as the company ventures into the new generation of consoles.
Nintendo’s forecast for the Switch 2 is decidedly optimistic. The company expects to sell 15 million units within its first fiscal year, which concludes March 31, 2026.
Alongside hardware sales, Nintendo projects the sale of 45 million games for the new console, emphasising the integral role of software in driving profitability.
Furthermore, Nintendo predicts a substantial turnaround in its financial performance, anticipating a 63 per cent increase in turnover to 1,900 billion yen (approximately 11.63 billion euros) and a 7.6 per cent rise in profit to 300 billion yen (about 1.84 billion euros).
The Nintendo Switch 2 will be officially released on June 5th, with a retail price of 469 euros. As the gaming industry continues to evolve with emerging trends and intense competition, Nintendo’s strategic enhancements to its flagship console and its ability to leverage existing intellectual property will be essential to sustaining its market position.
If the sales forecast proves accurate, the Switch 2 could mark a successful new chapter for Nintendo, reversing the recent decline and securing the company’s profitability and influence in the global gaming landscape.