Nintendo recently announced a significant 60% profit decline for the first half of its fiscal year, primarily due to waning demand for its aging Switch console, now in its eighth year. Profits fell to 108.7 billion yen ($715 million), and sales dropped by 34% compared to the previous year. The Kyoto-based company’s console sales also saw a decrease, with only 4.7 million units sold this period, down from 6.8 million the previous year.
Nintendo has announced a notable drop, highlighting difficulties with its older Switch console. Renowned for developing legendary franchises such as Super Mario, the company revealed a 60% decrease in profits for the initial half of its fiscal year, attributing this to a drop in demand for the Switch, which has been available for eight years.
Aging Console, Lower Sales
The Kyoto-based video game giant recorded a profit of 108.7 billion yen ($715 million) for the April-September period, down from the previous year but sales fell by 34% compared to the previous year, indicating a noticeable decline as the Switch ages without a successor in sight. This decrease is largely attributed to the Switch’s life cycle maturity, with global sales of the console declining from 6.8 million units last year to 4.7 million units this year.
Even if Nintendo is still a famous videogame, and remain with an international sales over 74% of its revenue, the demand is slow around the world and the company is dealing with a lot pf pressure for release a new hardware. Its expected in the future and successor for Nintendo Switch but for now they are hoping to mantaining the interest in the current console.
Expectation for the Holiday Season
With the holiday shopping season approaching, Nintendo expects an uptick in sales. The Christmas and New Year periods are especially crucial, as gift-giving traditions in Japan and other markets drive gaming sales. Despite a decrease in annual projections, Nintendo hopes that the holidays will bring a boost to its bottom line.
Nintendo saw strong performance from a few of its games, with titles like Paper Mario RPG and Luigi’s Mansion 2 HD each selling over a million copies. However, total game sales dropped from 97 million last year to about 70 million this year, reflecting fewer blockbuster releases.
