Nintendo Report: Net profit fell by almost 60%, resulting in the company lowering its forecasts for the entire fiscal year 2025
Nintendo reported its financial results for the first half of fiscal 2025. All of the company's key figures are in decline.
Legend of Zelda: Echoes of Wisdom
Financial Indicators:
- Nintendo's net sales decreased by 34.3% compared to the previous year, dropping to 523.2 billion yen (3.44 billion USD).
- The majority of this revenue was generated outside Japan — 74.7%. North and South America accounted for 44.6% of the total revenue, followed by Japan (25.3%) and Europe (22.4%).
- Operating profit reduced by 56.6%, totaling 121.5 billion yen (799.9 million USD). Nintendo attributes this to increased expenses.
- Net income was 108.6 billion yen (760.24 million USD), 59.9% less than the previous year.
- The company attributed the decline in revenue to the persistently weak yen and decreasing demand for the Nintendo Switch.
- In light of the current results, Nintendo lowered its forecasts for the entire fiscal year 2025: expected sales are now projected at 1.28 trillion yen (8.4 billion USD), and operating profit at 360 billion yen (2.37 billion USD). This forecast is 5.2% and 10% lower, respectively, than previous estimates.
Data on Nintendo Console and Game Sales:
- From April to September 2024, 4.72 million Nintendo Switch consoles were sold — a 31% decline from the previous year.
- Although the OLED version remained the most in-demand (2.5 million units), its sales dropped by 46.8% year-on-year. Conversely, demand for the standard and Lite versions slightly increased (by 0.7% and 7.5%).
- The growth of the latter is attributed to the release of the Nintendo Switch Lite: Hyrule Edition in September.
- Total sales of the Nintendo Switch reached 146 million units since its launch.
- The number of games sold was 70.28 million copies, a decline of 27.6%.
- The drop in sales is explained by the company as a result of last year's high performance following the release of The Legend of Zelda: Tears of the Kingdom and the Super Mario Bros. movie. Such factors are absent this year. Additionally, the Switch has been on the market for eight years, and interest in the platform is naturally waning.
- This year, Nintendo has nine million-selling games, including six developed in-house. The leader is Legend of Zelda: Echoes of Wisdom (2.58 million copies), followed by reissues of Paper Mario: The Thousand-Year Door (1.94 million) and Luigi’s Mansion 2 HD (1.57 million).
- Nintendo President Shuntaro Furukawa stated that despite the current half-year financial results, Nintendo still plans to announce its next console before April 2025. However, the exact release date for the Switch successor has yet to be announced.
