Nintendo lowers its forecasts, pending switch 2 -February 04, 2025 at 08:46
Tokyo (AWP/AFP) – The Japanese giant of video game Nintendo lowered its forecasts on Tuesday for its staggered 2024/25 exercise, accusing a strong fall of its sales before the upcoming marketing of its Switch 2.
For the financial year ending at the end of March, the group is now counting on an operating profit in a fall of 47% over a year, at 280 billion yen (1.64 billion Swiss francs) – revised figure down 22 % compared to which was expected until then.
Nintendo also expects an annual net profit to decrease 45%, 270 billion yen, and a tumble of almost 30% of its annual turnover to 1190 billion yen: forecasts there also clearly reduced .
These performance at half mast comes as the Japanese giant is preparing to market the Switch 2 this year, eagerly awaited by the players and supposed to stop the crumbling of its sales.
The stake is massive for Nintendo: the new machine must take over from its star console Switch. Released in March 2017, this hybrid machine playable both on the move and connected to a television, has become a huge success.
But sales have run out of steam over the years, weariness settling in the public waiting for a successor to the aging machine.
In fact, sales of switch and games in the third quarter (October-December) “were lower than expectations,” said Nintendo to justify the declining revision of its objectives.
Throughout the exercise, it expects to have sold 11 million Switch consoles, against a previous forecast of 12.5 million previously anticipated units.
“Sales of consoles and games fell compared to the previous exercise, during which sales were mainly pulled by (flagship titles like) +The Legend of Zelda: Tears of the Kingdom +and +Super Mario Bros. Wonder +” , said Nintendo.
Consequence: out of the first nine months, the net profit of the Japanese company melted by 42% to 237 billion yen, while its turnover plummeted from 31% to 956 billion yen.
“Nintendo was far too optimistic about the sales of the Switch 1 when she published her sales forecasts for the current exercise,” Serkan Toto, the Tokyo Kantan Games consultancy, told AFP, shortly before the publication of the results.
According to him, Nintendo is now turned towards the launch of the Switch 2.. He broadcast a short video in mid-January to present the exterior aspects: very similar to her big sister, she will have a larger screen, a larger removable support and will keep its “Joy-Con” removable controllers.
Its features will be detailed on April 2 before demonstrations the following days.
While “the initial reaction of the players has been mixed” against the “drop-down” announcements on the Switch 2, the popularity of the new console will be crucial for Nintendo, “which has no plan B in the event of failure “of the new console, believes Mr. Toto.
AFP/CK