Nintendo has further lowered its hardware forecast as Switch and game sales fell short of expectations.

In the first nine months of the current fiscal year, Nintendo’s dedicated gaming console business saw a 31.7% year-on-year sales drop to 895.5 billion yen (approximately $5.7 billion), driven by significant declines in Nintendo Switch and software sales.

Likewise, mobile and IP-related revenue fell 33.9% year-on-year to 49.7 billion yen (about $320 million), largely due to a challenging comparison with 2023’s hit, The Super Mario Bros. Movie.

Consequently, gross profit dropped 27.3% year-on-year to 565.5 billion yen (around $3.6 billion).

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Nintendo has now cut its financial forecast for the year ending March 2025 for the second consecutive time. It anticipates selling fewer Nintendo Switch units than previously projected, reducing its hardware forecast by 1.5 million to 11 million units and software by 10 million to 150 million units.

As the Nintendo Switch enters its eighth year, sales declines are anticipated, though steeper than Nintendo expected. Still, with over 150 million units sold, the Switch remains a remarkable success. Surpassing Sony’s PlayStation 2 (160 million units) to become the best-selling console ever may be out of reach, but the Nintendo DS’s 154 million units sold is within view.

Nintendo described Switch and software sales in its third quarter ending December 31, 2024, as “steady, considering the platform’s eighth year.”

Total sales for the Nintendo Switch family of systems fell 30.6% year-on-year to 9.54 million units. Software sales dropped 24.4% year-on-year to 123.98 million units. However, Nintendo highlighted strong sales of new titles, including The Legend of Zelda: Echoes of Wisdom (3.91 million), Super Mario Party Jamboree (6.17 million), Mario Kart 8 Deluxe (5.38 million), and Nintendo Switch Sports (2.63 million) during the quarter. Mario & Luigi: Brothership sold 1.4 million units.

Super Mario Party Jamboree has been a standout success. Nintendo noted that in the 11 weeks following its October 17, 2024 release, it outpaced sales of previous Mario Party titles on the Switch, including Super Mario Party and Mario Party Superstars.

More crucially, as Nintendo gears up for the Switch 2 launch later this year, player engagement remains high, with 129 million annual active users in 2024. This indicates sustained interest in the Switch nearly eight years post-launch.

“Nintendo Switch unit sales fell year-on-year, but even in its eighth year since launching in March 2017, the Switch continues to captivate consumers, with some weeks during the holiday season outperforming the prior year’s same-week sales,” Nintendo stated.

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Based on Nintendo’s latest financials, investors are eager for the Switch 2 to launch soon. Nintendo, however, highlighted upcoming original Switch titles, including Xenoblade Chronicles X: Definitive Edition on March 20, and Pokémon Legends: Z-A and Metroid Prime 4: Beyond slated for 2025.

The Nintendo Switch 2 was briefly mentioned, with no new details. “On January 16, we announced that Nintendo Switch 2, the successor to Nintendo Switch, will launch in 2025,” Nintendo said. “That same day, we shared a first glimpse of the Nintendo Switch 2 in a hardware introduction video.

Nintendo plans a Switch 2 Direct on April 2 to reveal more details and will host hands-on Switch 2 events in cities worldwide.