Nintendo full-year incomes 2023: Switch sales plunge 22%

Nintendo is hoping crucial video games such as Mario and Zelda will assist it keep gamers thinking about its aging Switch console series.

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Nintendo reported a fall in revenue and earnings in its driven by a drop in sales of its flagship Switch console.

For its complete , which ranged from April 2022 and ended Mar. 31 this year, Nintendo reported earnings of 1.6 trillion yen, fulfilling its own projection. That was a 5.5% year-on-year decrease.

Nintendo reported 432.7 billion yen in net revenue for the , down more than 9% year-on-year. However, it was much better than the business’s own projection of 370 billion yen.

The Japanese video gaming giant offered 17.97 million systems of its flagship Nintendo Switch console series, in line with its own projection of 18 million systems for the . That compares to simply over 23 million Switch systems offered in the ended Mar. 2022, a 22% decrease.

Nintendo stated “shortages of semiconductors and other components impacted production until around the end of summer” and the business “did not experience the growth in sales mainly during the holiday season” that it saw in the previous year.

For the ended March 2024, Nintendo projection sales of 15 million systems of the Switch.

Nintendo is competing with an aging console with the Switch, which has actually been on the marketplace for 6 years, with worries from financiers that its sales might have peaked. The business was two times required to slash its projection for Switch sales in the last after a frustrating holiday.

Over the life of the Switch, Nintendo has actually attempted to revitalize the console with a portable variation and one with an enhanced screen. That has actually assisted in the short-term however has actually done little to apprehend the total pattern of falling sales.

In contrast, competitor Sony reported an all-time high revenue for the year ended Mar. 31. The business likewise offered a record 19.1 million PlayStation 5 consoles in the fiscal year. Sony’s PlayStation 5 has actually just been on sale for simply over 2 years, so it is still in its infancy.

Nintendo shares are up 3.6% this year while Sony’s stock has actually increased 25%.

Switch ‘passed its peak’

“The Nintendo Switch had a fantastic run but definitely passed its peak,” Serkan Toto, CEO of Tokyo-based video games consultancy Kantan Games, informed CNBC.

“Based on the forecast for the new fiscal (year), I would not expect any miracles but rather a company running on auto-pilot and fulfilling its duty towards existing Switch users. Every console cycle comes to an end eventually, and Nintendo, too, now needs a new piece of hardware to revitalize its sales.”

The secret for Nintendo now is how it continues to generate earnings from its 114 million yearly paying users. The video gaming giant has a strong variety of video games and identifiable characters from Pokemon to Mario.

However, Nintendo stated software application sales amounted to 213.96 million systems for the year ended Mar. 31, down 9% year-on-year.

Nintendo is set to launch The Legend of Zelda: Tears of the Kingdom on Friday, among its most popular franchises.

The business anticipates software application sales of 180 million systems in the existing , marking expectations of an additional decrease.

Nintendo stated it anticipates net revenue to fall 21.4% to 340 billion yen in the year ended Mar. 2024.


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