Nintendo Profits Tumble as Gamers Eagerly Anticipate Arrival of Switch 2

Nintendo is something of a household name across the globe, having produced iconic characters ranging from Mario and Luigi to Link and Zelda, among countless others. However, its star power couldn’t save it from a recent sales slump — one perhaps instigated by the looming arrival of its successor to the Nintendo Switch, the tentatively dubbed “Switch 2,” on the horizon.

According to AP News, Nintendo reported an April to December 2024 profit of 237 billion yen ($1.5 billion) on Feb. 4, a stark 42% downturn from the same time frame the previous year. Further, nine-month sales fell 31% to $6 billion, according to the company, which did not share its quarterly results in great detail.

Nintendo has, as such, revised its revenue projections downward to $1.7 billion for the fiscal year through March, undercutting the previous expectation of $1.9 billion. Concerning that aforementioned nine-month period, sales for the existing Switch models fell to 9.54 million units as opposed to 13.7 million the prior year.

There may be a silver lining to this news, however, as at least some of the tepid sales figures of late can be attributed to gamers waiting for the release of Nintendo’s Switch 2.

The Independent reported that the device is expected to be revealed during an April event and is also expected to feature a larger screen and controllers than the previous iteration. Tech specs have, as yet, not been confirmed.

Nintendo has reconfirmed that the Nintendo Switch 2 is releasing in 2025 and won't be delayed pic.twitter.com/lSk8NYG3Z6

— Dexerto (@Dexerto) February 4, 2025

Nintendo Switch 2 Could Actually Be a Tough Sell as Well

However, as CNBC outlined, the massive success of the original Nintendo Switch could actually spell trouble for the fortunes of its follow-up in the form of the Switch 2.

Speaking to George Jijiashvili, senior principal analyst at Omdia, the outlet indicated that it could be an uphill battle in terms of the Switch 2 commanding the same presence and sales frenzy as the original models.

“The phenomenal success of the Switch is a double-edged sword,” Jijiashvili told CNBC, suggesting that Nintendo is “well-positioned for its second-generation hardware launch” as a result of its massive, loyal fanbase.

“However, the biggest challenge will be managing the transition effectively — convincing users to upgrade to the Switch 2 while ensuring those sticking with the original Switch remain supported and engaged,” he added.

According to Omdia projections, the Switch 2 is expected to hit store shelves before the end of June 2025, and the analyst and advisory firm expects the console to move 14.7 million units by the end of the year.

“Switch 2 outselling and outpacing the original Switch is a very tall order — this will be a huge challenge for Nintendo to navigate,” Jijiashvili concluded.