Nintendo's Net Sales Drop 34 Percent in H1/25, Full-Year Outlook Revised Downward
Compared to last year, sales of Nintendo Switch hardware and software have dropped significantly, despite nine games having sold more than one million units on the platform during this period. As a result, Nintendo has lowered its forecast for the year. No information was given on the successor to the Switch.
Nintendo has released its report for the second quarter and first half of the current fiscal year. Net sales decreased 34.3% year-on-year to ¥523.2 billion (€3.2 billion), operating profit decreased 56.6% year-on-year to ¥121.5 billion (€733 million), and net income attributable to owners of parent decreased 59.9% year-on-year to ¥108.6 billion (€655 million). According to the company, this is due to the continued weakness of the yen and lower sales of games and hardware, bearing in mind that the previous year was also particularly strong. Nintendo goes on to explain: "Although there was a proportional decrease in first-party software sales, the gross profit margin increased by 1.5 percentage points year-on-year to 60.8%. This is due to factors such as a proportional increase in digital sales relative to overall sales and a decrease in the proportion of hardware unit sales of Nintendo Switch ‒ OLED Model, which has a lower profit margin than the other models in the Nintendo Switch family."