Nintendo has again lowered its hardware forecast as Switch and game sales fell “below expectations.”

For the first nine months of the fiscal year, Nintendo’s gaming console business saw a 31.7% year-on-year sales drop to 895.5 billion yen (about $5.7 billion), driven by declines in Nintendo Switch and software sales.

Mobile and IP-related revenue also fell 33.9% year-on-year to 49.7 billion yen (around $320 million), largely due to tough comparisons with 2023’s hit The Super Mario Bros. Movie.

Gross profit dropped 27.3% year-on-year to 565.5 billion yen (approximately $3.6 billion).

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Nintendo has cut its financial outlook for the year ending March 2025 for the second time, lowering Switch hardware projections by 1.5 million to 11 million units and software by 10 million to 150 million.

With the Nintendo Switch in its eighth year, sales declines are expected but steeper than anticipated. Still, the Switch has sold over 150 million units, a remarkable achievement. Surpassing Sony’s PlayStation 2 (160 million units) may be out of reach, but the Nintendo DS’s 154 million is close.

Nintendo called Switch and software sales for the third quarter ending December 31, 2024, “steady for a platform in its eighth year.”

Overall, Nintendo Switch family sales dropped 30.6% year-on-year to 9.54 million units, with software sales down 24.4% to 123.98 million units. Nintendo highlighted new titles like The Legend of Zelda: Echoes of Wisdom (3.91 million), Super Mario Party Jamboree (6.17 million), Mario Kart 8 Deluxe (5.38 million), and Nintendo Switch Sports (2.63 million) for the quarter. Mario & Luigi: Brothership sold 1.4 million.

Super Mario Party Jamboree has been a standout, with Nintendo noting that in the 11 weeks since its October 17, 2024 release, it outpaced sales of previous Mario Party titles on Switch, including Super Mario Party and Mario Party Superstars.

More notably, as Nintendo gears up for the Switch 2 launch later this year, Switch engagement remains high, with 129 million annual active users in 2024, showing sustained interest nearly eight years post-launch.

“Nintendo Switch unit sales fell year-on-year, but even in its eighth year since March 2017, the Switch continues to captivate consumers, with some holiday season weeks outperforming the prior year,” Nintendo said.

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With these financial results, investors are eager for the Nintendo Switch 2’s release. Nintendo highlighted upcoming original Switch titles, including Xenoblade Chronicles X: Definitive Edition on March 20, and Pokémon Legends: Z-A and Metroid Prime 4: Beyond in 2025.

The Switch 2 was briefly mentioned: “On January 16, we announced the Nintendo Switch 2, the successor to Nintendo Switch, will launch in 2025,” Nintendo said. “That day, we shared a first look at the hardware in a video.

Nintendo will host a Switch 2 Direct on April 2 to share more details and plans hands-on events in cities worldwide.