Nintendo Switch Sales Decline, Greater Slowdown Anticipated This Year

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The Nintendo Switch console is grappling with a continuous sales slump, and the company projects an even more significant slowdown this year. The renowned Japanese gaming corporation estimates sales of 15 million units during the fiscal year ending next March, approximately 3 million less than the prior fiscal year source.

Following its launch in March 2017, Switch sales enjoyed steady growth, reaching a pinnacle of 28.8 million units during the year ending March 2021. Unfortunately, sales dipped to 23 million the subsequent year and further dwindled to 18 million most recently.

Despite a net profit of $3.2 billion (432.7 billion yen) over the past 12 months, a decrease of more than 9% compared to the previous year, Nintendo anticipates a 21% reduction in net profit for the current fiscal year as Switch sales continue to wane.

In a recent press conference, Nintendo President Shuntaro Furukawa highlighted the positive impact of “The Super Mario Bros. Movie” on the company’s earnings forecast. The movie, released in April, rapidly gained global acclaim, collecting over $677.9 million within two weeks of its premiere in markets such as the U.S., China, the U.K., and Germany. The film’s earnings have since exceeded $1.1 billion.

Furukawa expressed amazement at the movie’s extraordinary success, which investors have also recognized. As a result, Nintendo’s share price has attained its highest level since the beginning of the year.

Hideki Yasuda, a gaming industry analyst from Toyo Securities, estimates that if box office revenue nears $1.5 billion, Nintendo’s earnings could see a boost of over $220 million. The movie’s unanticipated success supports Nintendo’s lofty share price.

However, console and game sales remain the cornerstone of Nintendo’s revenue, making up more than 90%. As the Switch enters its sixth year, Furukawa concedes the uncertainties that lie ahead. “We are now in unknown territory,” he stated, adding that reaching the target of 15 million units sold this year “is a bit of a stretch.”

Numerous industry experts are urging Nintendo to unveil a new console to counteract the Switch’s downturn and foster growth. Rumors suggest a new console may debut next year, but insiders claim a product launch is unlikely before next spring at the earliest.