Nintendo warns of a decline in Switch 2 sales just one year after its launch.

Summary of news about Nintendo and Sony
ItemInformationMemory issues Sony announced that due to memory shortages it will release only those consoles for which it can find components at “acceptable” prices. Decline in Switch 2 sales Nintendo plans to sell fewer Switch 2 units by March 2027 than in the previous fiscal year.

What was said in the quarterly report
1. Pricing

- The company announced a price increase for the Switch 2 starting September of this year.

2. Sales forecast

- From April 2024 to March 2025 Nintendo expects to sell no more than 16.5 million consoles.
- In the previous fiscal year (through March 31) almost 20 million units were sold, so the decline will be noticeable – especially considering that the Switch 2 was released only in June of last year.

3. Financial results

- In the first quarter of this calendar year (closing the previous fiscal year) revenue was about $2.6 million, below analysts’ expectations.
- Net profit was $417 million, exceeding forecasts.

4. Forecast for the current fiscal year

- Expected revenue: no more than $13 million (a decline of 11.4 % compared to last year).
- Taking into account rising component prices and customs tariffs, the expected loss from these factors is about $638 million.
- Net profit should fall by 27 % to $1.98 million.

Conclusion
- Revenue and net profit this year will be significantly below analysts’ forecasts.
- The decline in Switch 2 sales is due both to memory constraints and the price increase on the console.

Thus, Nintendo faces a double burden: component shortages and the need to adjust pricing policy, which ultimately will affect the company’s financial results.