Nintendo has experienced a decline in profits over five consecutive quarters, leading the company to lower its financial expectations for the fiscal year ending in March 2025. In the first half of this fiscal cycle (April-September 2024), revenues fell by 34.3% compared to the same period in 2023, reaching 523.2 billion yen, while net profit decreased by 59.9%, amounting to 108.6 billion yen.

Causes of the Decline

The primary cause of this profit decline is the decrease in sales of the Nintendo Switch console, now in its eighth year on the market. Despite its initial success, sales have waned, negatively impacting the company’s revenues.

Strategies to Reverse the Trend

To counteract this negative trend, Nintendo plans to release new installments in the Super Mario series and other games to revitalize sales. Additionally, the company aims to increase the number of consoles per household, encouraging more family members to own their own devices. Cinco Días

Recent and Upcoming Releases

In October 2023, Nintendo released “Super Mario Bros. Wonder” for the Nintendo Switch, a 2D platformer that has been well-received by critics and players. This title introduces new mechanics and powers, offering a fresh experience within the franchise. GamesIndustry.biz

Additionally, in November 2024, the release of “Mario & Luigi: Brothership” is anticipated, a new role-playing game that continues the “Mario & Luigi” series after nine years. This title features turn-based combat and puzzles requiring cooperation between the brothers, providing a unique experience for fans of the saga. Financial Times

Future Outlook

Despite current challenges, Nintendo is confident that these new releases, along with strategies focused on expanding its user base, will help reverse the negative profit trend. The company continues to innovate and adapt to market demands, striving to maintain its position as a leader in the video game industry.