Nintendo announces Q3 2025 results and seems that expectations for Nintendo Switch 2 are being felt monetarily

Nintendo recently reported its Q3 financial results for the fiscal year ending March 2025, revealing a significant downturn in its financial performance. The company posted $1.10 billion in revenue, a notable decline from $1.70 billion a year ago. This 31.4% drop in revenue was accompanied by a decrease in earnings per share (EPS) from 117.45 yen to 110.40 yen.

Nintendo Switch Sales

One of the most striking aspects of Nintendo’s Q3 report was the 30.6% year-over-year decline in Nintendo Switch hardware sales, with only 4.82 million units sold during the quarter. This brought the total sales for the fiscal year to 9.54 million units, significantly lower than the previous year. The company has now revised its sales forecast for the Switch from 12.5 million units to 11 million units for the fiscal year.

Software Sales

Software sales also saw a decline, with 123.98 million units sold during the nine-month period, down 24.4% from the previous year. Despite the release of popular titles like The Legend of Zelda: Echoes of Wisdom and Super Mario Party Jamboree, the overall software sales were not enough to offset the decline in hardware sales.

Nintendo Switch 2 Expectations

Amidst these challenges, Nintendo has announced plans to launch the Nintendo Switch 2 later this year. The new console is expected to rejuvenate the company’s hardware sales and reinvigorate its market position1. However, Nintendo has also flagged that Switch games may not be fully compatible with the Switch 2, which could impact consumer decisions.

The anticipation of the Switch 2 has led to a slowdown in sales of the original Switch, as consumers hold off on purchases in anticipation of the new console. This has resulted in Nintendo reducing its annual dividend forecast and net sales expectations for the fiscal year2. Despite these challenges, Nintendo remains optimistic about the potential of the Switch 2 to drive future growth.

Nintendo’s Q3 results highlight the challenges the company faces as it transitions to its next-generation console. While the decline in sales is concerning, the upcoming launch of the Nintendo Switch 2 offers a beacon of hope for the company’s future. Investors and gamers alike will be closely watching how Nintendo navigates this pivotal period in its history.