Nintendo announced on February 4, 2025, during its third quarter financial results presentation, significant news for fans and investors: the Nintendo Switch has surpassed 150 million units sold worldwide. This milestone not only cements the console's place in gaming history but also highlights its enduring popularity since its launch on March 3, 2017.
The Nintendo Switch, with its versatile modes—handheld, tabletop, and TV configurations—has remained appealing to diverse gamers. Notably, the Switch includes detachable Joy-Con controllers, adding to its flexible gameplay experiences. Over the years, Nintendo has introduced new models, such as the longer-battery-life version released in August 2019, and the dedicated handheld model, the Nintendo Switch Lite, debuted shortly thereafter. The OLED model, with its enhanced display released in October 2021, showcased the company's commitment to technological improvement.
According to Nintendo's official report, total sales for all Switch models have reached approximately 150.86 million units. Not too far behind as the top seller among Nintendo's hardware, the Nintendo DS series holds the title for the highest sales volume, reaching 154.02 million units globally. While the Nintendo Switch has made impressive strides, there remains potential for continued growth, especially with the anticipated Nintendo Switch 2 expected to launch later this year.
Despite this impressive sales achievement, Nintendo’s financial results reveal other challenges. Total revenue, reported as 956.2 billion yen, experienced a 31.4% decrease compared to the previous year. Earnings before interest and taxes were down by 42.3%, settling at 327.1 billion yen. This decline marks a notable drop, forcing the company to adjust its annual profit forecast downward by 11.9% to 370 billion yen.
According to Nintendo, the anticipated sales drop can be attributed to the natural lifecycle of the Nintendo Switch, which is now entering its eighth year. Even though user engagement remains strong, with over 100 million active players, hardware sales fell significantly, 30.6% compared to the previous year, with expectant figures showing only 9.54 million sold so far this fiscal year.
The company attributes the drop in hardware sales partly to the anticipation surrounding the Nintendo Switch 2. Nintendo's management emphasized, "We recognize the declining sales pace, but the Nintendo Switch remains strong with over 150 million units sold," highlighting the considerable demand for the current platform.
Looking to the future, Nintendo is focusing on its upcoming releases to revitalize interest. Among these, the release of new titles such as 'Donkey Kong Returns HD' expected on January 16, and 'Xenoblade Chronicles: Definitive Edition' set for March 20, may help boost software sales, which have cumulatively reached 1.3598 billion units. The initiatives point to Nintendo's commitment to maintaining momentum and reviving hardware sales through engaging gaming experiences.
Meanwhile, investors are closely watching the company’s forecasts and how effectively Nintendo pivots through this phase. Given the annual dividend adjustment from 129 yen to 116 yen, stakeholders are cautious but optimistic about Nintendo's long-term strategy. With cloud gaming gaining traction and new competitors entering the market, the coming months will be telling for the firm's adaptation to the changing gaming environment.
Upcoming developments, such as the scheduled Nintendo Direct on April 2, promise to deliver insights about the Nintendo Switch 2, stirring anticipation among enthusiasts and industry watchers alike. "We are closely watching the sales of our current platform as we prepare for the next generation," said Nintendo executives, emphasizing the company's focus on innovation and future-proofing its offerings.
Despite current challenges, Nintendo's track record with the Switch and the proposed sequel indicates resilience and potential for future growth. The company's ability to adapt to market shifts, combined with the high engagement rates of the existing user base, places it at the forefront of the gaming industry as it prepares to enter the next chapter of console gaming.