- Nintendo sold 2.1 million Switch units in Q1, down from 3.91 million a year earlier, while maintaining its annual forecast of 13.5 million units.
- The company’s operating profit plummeted 71% to 54.5 billion yen ($365.6 million), as it faces industry challenges.
OUR TAKE
Nintendo’s 71% profit drop signals deeper issues in the gaming industry. The decline in Switch sales and a limited game pipeline highlight a lack of innovation. As costs rise and layoffs increase, Nintendo must pioneer new paths to avoid further decline and truly captivate the gaming community.
–Jasmine Zhang, BTW reporter
What happened
Nintendo reported selling 2.1 million Switch units in the April-June quarter, a decline from 3.91 million units a year ago. As it prepares to launch a successor to its hybrid console, Nintendo has maintained its full-year Switch sales forecast at 13.5 million units.
The company has a limited lineup of new titles for this year, including “The Legend of Zelda: Echoes of Wisdom” and “Mario & Luigi: Brothership”.
Amid rising industry costs and weak pricing power, evidenced by Bungie’s announcement of a 20% workforce cut, Nintendo’s operating profit fell 71% to 54.5 billion yen ($365.6 million) in Q1, falling short of analyst expectations.
Also read: Nintendo says it won’t use generative AI to make games
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Why it’s important
Nintendo’s staggering 71% drop in operating profit this quarter is a stark reminder that the gaming giant’s strategy is faltering. Selling 2.1 million Switch units, down from last year’s 3.91 million, indicates that the console is past its prime. Gamers are clamouring for innovation, not aging hardware with rehashed titles.
This decline isn’t just Nintendo’s problem. It reflects a broader industry malaise. Rising costs and weak pricing power plague even titans like Sony, evidenced by Bungie’s recent layoffs. Nintendo’s thin game pipeline underscores a critical issue that creativity and risk-taking are being sacrificed for profitability.
As we await the new console, one must ask—will it be enough? The gaming community deserves more than incremental updates and nostalgia. It’s time for Nintendo to break the mould, to pioneer like it once did. Otherwise, this profit plunge might be the beginning of a more significant fall.
