Nintendo's Profits Are Plummeting (-59%). But Is It Really That Bad ?

© Nintendo

Last night, Nintendo held a meeting with its main shareholders, an opportunity for the group to review its economic situation. And even though the Nintendo Switch is on track to grab the title of best-selling video game console of all time (ahead of Sony's PS2), the Japanese giant was forced to revise downwards its forecasts for the 2024/2025 financial year.

No, Nintendo is not going to die

Indeed, it must be said that last night, Nintendo confirmed a 59.9% drop in its net profit in the first half of the year. Nintendo is looking forward to difficult months to say the least, until the release of the successor to the super-powerful Switch, of course. For several months now, rumors have been intensifying concerning the one that will have the difficult task of taking over from the hybrid console launched in March 2017, almost 8 years ago.

Thus, for the current financial year (which will end in March 2025), Nintendo is now counting on operating profit targets down 32%, with sales also down 23%. Nintendo is aiming for an annual net profit of 300 billion yen (1.8 billion euros), a drop of 39% over one year.

© Nintendo

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Currently, Nintendo is staying the course with its Switch range, the Japanese group having also multiplied the bundles at the end of the year to boost sales. Over the year, the console has seen a drop in sales of around 31%. A drop that is also reflected on the games side, with again a drop of more than 27%. For the entire financial year, Nintendo has reduced its sales target to 12.5 million machines, compared to 13.5 million previously.

According to many sources, the Nintendo Switch 2 should be launched by June 2025, allowing Nintendo to quickly get back on track, with sales that should (normally) explode as soon as the machine is marketed. In all likelihood, Nintendo should therefore not communicate about this new machine before the beginning of next year, so as not to interfere with sales of the Switch for the end of the year. In the meantime, it is an astonishing little connected alarm clock that the Japanese giant has been marketing for a few days: Alarmo.

© Robin Sabbadini for Presse-citron

It remains to be seen what form this long-awaited Nintendo Switch 2 will take, and especially whether the Japanese giant will manage to confirm the success established by the current model. Let's remember that after a very popular Super Nintendo, the Japanese group had experienced a certain flop with its Nintendo 64. The same thing happened a few years later, with an absolutely catastrophic Wii/Wii U transition on the part of Nintendo.

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