Nintendo sales drop -30% to $7.6 billion, Switch 2 expected to drive $13 billion net sales

Nintendo's full-year earnings are down significantly, dropping by over 30% to ~$7.6 billion as the Switch 1 generation slowly starts to wind down.

Nintendo sales drop -30% to $7.6 billion, Switch 2 expected to drive $13 billion net sales
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Senior Gaming Editor
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TL;DR: Nintendo's FY25 results reveal a 34% decline in net sales to $7.6 billion and a 52% drop in operating profit, driven by the aging Switch platform and reduced hardware and software sales. The company anticipates a strong FY26 rebound with the Switch 2 launch, despite lower profit margins and tariff impacts.

Nintendo's FY25 results show a sharp decline in net sales while the company readies its new Switch 2 platform.

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Nintendo has published its FY25 earnings that show a hefty -30% drop in overall performance. Net sales dropped by -34% year-over-year to $7.6 billion, whereas other metrics like operating profit slid by an even greater level by -52%, and total net profits dropped by nearly half to $1.795 billion. The numbers are a direct result of the Switch entering its 9th year, which has affected overall hardware and software spending. Consumers are also poised for the Switch 2's launch in June.

These results show that the Fiscal Year 2025 period (April 2024 - March 2025) had the lowest-ever net sales out of the Switch generation.

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• Sales from our dedicated video game business decreased by 30.9% year-on-year to 1,083.5 billion yen. Sales declined this fiscal year despite the continued weakness of the yen, affected by a year-on-year decline in unit sales for both Nintendo Switch hardware and software.

• Mobile and IP related income fell by 27.0% year-on-year to 67.6 billion yen, mainly due to the decrease in visual content revenue related to The Super Mario Bros. Movie.

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Nintendo expects to bounce back from this drop with the Switch 2's release. The company's FY26 forecast shows a significant spike in expected net sales to $13.571 billion, driven mostly by 15 million Switch 2 shipments (which are all expected to be sold to consumers) and 45 million game sales.

Interestingly enough, profits are not expected to summarily rise with the big sales jump. Nintendo president Shuntaro Furukawa explained this by confirming the Switch 2 has a lower profit margin than the Switch 1, and that US tariffs are expected to shave off tens of billions of yen in Nintendo profits for the FY26 period.