In the three months ending September 30, Nintendo sold 2.67 million units of the Switch 2, a significant drop from 4.53 million units sold in the same quarter last year and below the 3.82 million units sold in the previous quarter.
The decline is attributed to price increases implemented in the U.S., Canada, and Japan, following earlier hikes in Japan, amid rising memory costs driven by supply shortages and high demand. Despite this downturn, Nintendo has maintained its sales forecast of 16.5 million units for the fiscal year ending in March 2027.
Financially, the company reported revenue of 448.2 billion Japanese yen ($2.8 billion), falling short of the expected 481.37 billion yen, and a net profit of 73.5 billion yen, below the anticipated 82.16 billion yen. While Nintendo has released popular titles like 'Tomodachi Life: Living the Dream' and 'Pokémon Pokopia', the absence of major blockbuster games has left investors anxious.
The recent release of 'The Legend of Zelda: Ocarina of Time' is seen as a potential catalyst for sales, but industry experts, including Serkan Toto, CEO of Kantan Games, emphasize the need for more significant game releases to sustain interest in the Switch 2 and drive hardware sales in the future