Nintendo revises full-year outlook as its H1 revenue fall over 30% and Switch sales continue to decline

Nintendo has released its financial report for the six months ended September 30, 2024. The company also lowered its full-year outlook.

The Legend of Zelda: Echoes of Wisdom

Financial highlights

According to its H1 financial results, Nintendo reached ¥523.2 billion ($3.44 billion) in net revenue, down 34.3% compared to the same period last year.
“Despite the continued weakness of the yen, sales decreased year-on-year due to factors such as a decline in unit sales for both Nintendo Switch hardware and software,” the company noted.
Operating profit was ¥121.5 billion ($799.9 million), down 56.6% year-over-year. Nintendo cited rising selling, general, and administrative expenses as one of the reasons for the decline.
74.7% of all Nintendo sales came from outside of Japan. The Americas accounted for 44.6% of the total, followed by Japan (25.3%) and Europe (22.4%).

Due to the sales trend over the six-month period, Nintendo has revised its financial forecast for the full FY25 ending March 31, 2025.
It currently expects to generate ¥1.28 trillion ($8.4 billion) in net revenue, down 5.2% from the previous outlook. The operating profit forecast decreased 10% to ¥360 billion ($2.37 billion).

In H1 FY25, Nintendo Switch sales reached 4.72 million units, down 31% year-over-year. Game sales fell 27.6% to 70.28 million units.
The company noted that sales in H1 FY24 were driven by the hype surrounding The Super Mario Bros. Movie and The Legend of Zelda: Tears of the Kingdom, and there were “no such special factors in the first half of this fiscal year.” Nintendo Switch is now also in its eighth year, so there is an expected decline in this segment.

Switch’s lifetime sales have exceeded 146 million units. It remains the third best-selling game console of all time, behind only Nintendo DS (154 million) and PlayStation 2 (over 155 million).
Nintendo has nine million-seller games this year, including six first-party titles. The Legend of Zelda: Echoes of Wisdom leads with 2.58 million units sold, with other new releases including Paper Mario: The Thousand-Year Door (1.94 million) and Luigi’s Mansion 2 HD (1.57 million).