What's happened
Nintendo's profit for the fiscal year ending March 2025 fell to 278.8 billion yen ($1.9 billion), down from 490 billion yen the previous year. Anticipation builds for the Switch 2, launching June 5, with projected sales of 15 million units for the upcoming fiscal year.
What's behind the headline?
Financial Performance
- Nintendo's profit dropped significantly, indicating a challenging market.
- Sales decreased by 30%, reflecting reduced demand for the aging Switch.
Anticipation for Switch 2
- The upcoming Switch 2 is expected to rejuvenate interest, with 15 million units targeted for sale.
- New software titles, including popular franchises like 'The Legend of Zelda' and Pokémon, are anticipated to drive sales.
Strategic Moves
- The opening of a new Nintendo store in San Francisco and the Super Nintendo World in Orlando aims to enhance brand engagement.
- Nintendo's forecast of a profit increase to 300 billion yen ($2.1 billion) for the next fiscal year suggests optimism about the Switch 2's impact.
What the papers say
According to AP News, Nintendo's profit for the fiscal year through March was 278.8 billion yen, a significant drop from the previous year's 490 billion yen. The company anticipates selling 15 million units of the Switch 2, which is set to launch on June 5. The Independent notes that the decline in profits is typical as demand for gaming consoles decreases over time, but new software can boost sales. Nikkei Asia highlights the company's ambitious sales target for the Switch 2, emphasizing the importance of upcoming software releases in driving consumer interest.
How we got here
Nintendo's financial struggles come as demand for the current Switch wanes, now in its eighth year. The company is banking on the upcoming Switch 2 and new software releases to revitalize sales.
Go deeper
- What new games will be available for the Switch 2?
- How does Nintendo plan to boost sales?
- What impact will the new store openings have?
Common question
-
What Caused Nintendo's Profit Decline and What’s Next for the Switch 2?
Nintendo has reported a significant drop in profits as it prepares for the launch of the highly anticipated Switch 2. With a profit of 278.8 billion yen for the fiscal year ending March 2025, down from 490 billion yen the previous year, many are left wondering what led to this decline and how the upcoming console might change the company's fortunes. Below, we explore the key questions surrounding Nintendo's financial situation and future prospects.
More on these topics
-
Nintendo Co., Ltd. is a Japanese multinational consumer electronics and video game company headquartered in Kyoto. The company was founded in 1889 as Nintendo Karuta by craftsman Fusajiro Yamauchi and originally produced handmade hanafuda playing cards.
-
Japan is an island country of East Asia in the northwest Pacific Ocean. It borders the Sea of Japan to the west and extends from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south.
-
The Nintendo Switch is a video game console developed by Nintendo, released worldwide in most regions on March 3, 2017. It is a hybrid console that can be used as a home console and portable device.
-
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
-
Super Mario is a platform game series and media franchise created by Nintendo and featuring their mascot, Mario. Alternatively called the Super Mario Bros. series or simply the Mario series, it is the central series of the greater Mario franchise.