Nintendo’s recently published financial results for the first quarter of the 2024/25 fiscal year indicate a decline in both Switch hardware and software sales. The company reported that Switch hardware sales now stand at 143.42 million units sold, up from 141.32 million reported in May. However, between 1st April and 30th June, Nintendo sold 2.1 million consoles across the Switch family of systems, representing a significant 46.3% decline year-on-year. Similarly, Switch software sales experienced a decline of 41.3% compared to the same period last year, with 30.64 million units sold.
Nintendo attributes this decline to the extraordinary success of two key releases, The Super Mario Movie and Zelda: Tears of the Kingdom, which launched in April and May 2023 respectively. The ‘Zelda effect’ has had a noticeable impact on the industry as a whole, resulting in weakened year-on-year software sales across the board. While it is not uncommon for demand to decrease as a console ages, the sales success of Zelda, coupled with the weak yen, has intensified the year-on-year effect on Nintendo’s reports.
Despite the decline in overall sales, Nintendo notes that hardware sales remain steady compared to the previous quarter. The OLED model of the Switch continues to be the favorite, with 1.24 million units sold, while the regular Switch and Switch Lite sold 0.53 million and 0.33 million units, respectively.
Nintendo’s announcement of a “Switch successor” coming before the end of the current fiscal year has also impacted current sales. Interest in the current Switch console appears to be waning as consumers eagerly await news of the next-generation system. The anticipation surrounding the upcoming Echoes of Wisdom release in September raises questions about whether it will inject a new ‘Zelda effect’ and boost sales for the company.
While Nintendo’s financial results for the first quarter of the 2024/25 fiscal year show a decline in both hardware and software sales, factors such as the success of key releases and anticipation for a new console contribute to the overall trend. As the company navigates through this period of transition, it will be interesting to see how upcoming releases and announcements impact future sales and the gaming industry as a whole.
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