Nintendo has once again revised its hardware forecast downwards, as sales of the Nintendo Switch and its games have fallen "below expectations." In the first nine months of the current financial year, the company's dedicated game console business saw a 31.7% year-on-year decrease, totaling 895.5 billion yen (approximately $5.7 billion). This decline is attributed to reduced sales of both the Nintendo Switch hardware and software.

Additionally, income from mobile and IP-related ventures dropped by 33.9% year-on-year to 49.7 billion yen (approximately $320 million), largely due to the challenging comparison against the success of 2023's blockbuster, The Super Mario Bros. Movie. As a result, Nintendo's gross profit fell by 27.3% year-on-year to 565.5 billion yen (approximately $3.6 billion).

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Choosing the best Nintendo Switch game can be subjective, but popular titles often include The Legend of Zelda: Breath of the Wild, Super Mario Odyssey, and Animal Crossing: New Horizons. These games are celebrated for their innovative gameplay and engaging experiences, making them standout choices on the platform.

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Nintendo has now revised its financial forecast for the year ending March 2025, marking the second consecutive downward revision. The company now anticipates selling fewer Nintendo Switch units than previously forecasted, adjusting its expectation down by 1.5 million to 11 million units, and software sales by 10 million to 150 million units.

Given that the Nintendo Switch is now in its eighth year, declines in sales were anticipated, but the reality has been more dramatic than Nintendo had predicted. Nevertheless, the Switch has achieved over 150 million units sold, marking an incredible success for Nintendo. While surpassing Sony's PlayStation 2, with 160 million units sold, to become the best-selling video game console of all time may now be out of reach, the Nintendo DS's 154 million units sold is within sight.

Nintendo described the sales of Switch and software in the third quarter ending December 31, 2024, as "stable given the fact that the platform is in its eighth year." Overall sales for the entire Nintendo Switch family of systems decreased by 30.6% year-on-year, reaching 9.54 million units. Software sales also fell by 24.4% year-on-year to 123.98 million units. However, new game releases like The Legend of Zelda: Echoes of Wisdom (3.91 million), Super Mario Party Jamboree (6.17 million), Mario Kart 8 Deluxe (5.38 million), and Nintendo Switch Sports (2.63 million) performed well during the three-month period. Mario & Luigi: Brothership sold 1.4 million units.

Super Mario Party Jamboree has been particularly successful, surpassing the sales pace of previous Mario Party titles on the Nintendo Switch, such as Super Mario Party and Mario Party Superstars, in the first 11 weeks following its release on October 17, 2024.

As Nintendo prepares to launch the Switch 2 later this year, it's noteworthy that more people are playing the Switch now than ever before, with 129 million 'annual playing users' in 2024. This indicates a sustained interest in the platform even nearly eight years after its launch.

"Nintendo Switch unit sales declined year-on-year, but even in the eighth year since its launch in March 2017, Nintendo Switch continues to attract the interest of consumers, and sales in some weeks during the holiday season exceeded same-week sales of the previous year," Nintendo stated.

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Given Nintendo’s latest financial report, investors are eager for the Nintendo Switch 2 to be released sooner rather than later. Nintendo has upcoming releases for the original Switch, including Xenoblade Chronicles X: Definitive Edition on March 20, and Pokémon Legends: Z-A and Metroid Prime 4: Beyond scheduled for 2025.

Nintendo Switch 2 was mentioned, though no new information was provided. "On January 16, we announced that Nintendo Switch 2, the successor to Nintendo Switch, will be released in 2025," Nintendo stated. "On the same day, we offered a first look at Nintendo Switch 2 in a video introducing the hardware."

Nintendo plans a Switch 2 Direct for April 2, where it will reveal more details. Additionally, Nintendo will host Switch 2 hands-on events in cities around the world.