Nintendo drops annual forecast -22%, now expects to sell millions less games and hardware

Nintendo's Q3 results have led the company to decrease its annual earnings, sales, and profit forecasts.

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Nintendo has just reported its Q3FY25 results, showing big year-over-year declines as Nintendo's new Switch 2 console looms. The company has now downwardly adjusted its metrics to reflect holiday Q3's results, even farther from the previous forecast.

Nintendo now expects to make in Fiscal Year 2025: 1.19 trillion yen in net sales (-7%), 280 billion yen in operating profit (-22.2%), and 270 billion yen in net profit (-10%). The revision was driven by a slash in hardware and software sales; Switch sales predictions are now at 11 million units, down 1.5 million from the original forecast, and 150 million game sales, down 10 million units from the previous prognostication.

Nintendo CEO Shuntaro Furukawa explains in the financial report:

Next, we would like to talk about changes to our consolidated financial forecast for the fiscal year ending March 2025.

Considering the sales trend for the third quarter and outlook for the remainder of the fiscal year, our revised forecast is 1,190.0 billion yen in net sales, 280.0 billion yen in operating profit, 370.0 billion yen in ordinary profit, and 270.0 billion yen in profit attributable to owners of parent.

The assumed exchange rate at the end of the period for USD has been revised from 1 USD = 140 yen to 150 yen, and the rate for Euros remains 1 Euro =155 yen.

We have modified the unit sales forecast for the fiscal year, decreasing Nintendo Switch hardware by 1.50 million to 11.00 million units and software by 10.00 million to 150.00 million units.

As a result of the modification of the consolidated earnings forecast, the annual dividend forecast has been revised from 129 yen to 116 yen per share.