Nintendo has kicked off Q1 2025 with year-on-year downturn across its entire business. In its newly-released financial report, the company has confirmed significant drops for net sales (-46.5%), operating profit (-70.6%) and net profit (-55.3%), with this comparative loss attributed to “special factors” in Q1 2024, including the release of The Legend of Zelda: Tears of the Kingdom and The Super Mario Bros. Movie.
As noted, Q1 2024 was a blockbuster quarter for Nintendo, with high sales driven by renewed interest in its major franchises. Per Nintendo, “unit sales of both hardware and software were extremely high for a first quarter” as The Super Mario Bros. Movie “energised” its video game business, and The Legend of Zelda: Tears of the Kingdom engaged a significant audience.
Q1 2025 had no such blockbusters, and as a compounding factor, the imminent launch of a new Nintendo console contributed to lower interest in the existing Nintendo Switch and its lineup of games. After eight years in the spotlight, enthusiasm for the Nintendo Switch is naturally winding down, which has contributed to an unavoidable lull for Nintendo.
For now, there’s no news about the next Nintendo console, and until a release is firmly locked in, Nintendo is likely to continue its temporary downturn. Based on colour in its financial report, the Q1 result is not unexpected for Nintendo, and it will likely continue in a holding pattern until the launch of its next console. When this happens, we can expect a sharp uptick in Nintendo’s results.
Read: Nintendo will announce Switch 2 console by March 2025
Paper Mario was Nintendo’s best-seller for Q1 2025
Further into its financial reports, Nintendo has revealed some major successes for the quarter, despite overall losses. There were three million-seller titles in Q1 2025 for one thing, with the group led by Paper Mario: The Thousand Year Door (1.76 million units sold), and followed swiftly by Luigi’s Mansion 2 HD (1.19 milion units sold). The third million-seller is Princess Peach: Showtime!, which has sold 1.3 million units to date (and this statistic is expected to grow in the long-term).
Again, these lower than average sales results can be attributed to the Nintendo Switch entering its twilight years, as the console’s popularity naturally wanes. It’s had a brilliant run, and has one of the best game lineups of any Nintendo console, but after eight years, it’s time for a new avenue.
What’s next for Nintendo?
Looking to the future, Nintendo is very positive about the games still to launch for Nintendo Switch. The console’s upcoming lineup includes new Mario Party, The Legend of Zelda, Mario & Luigi, and Donkey Kong games, with these expected to make an impact across Q2 and Q3 2025.
“Going forward, we will continue to work to maximise software sales as well as hardware sales in an environment where many people continue to play Nintendo Switch,” Nintendo said.
In addition to supporting the launch of new software, and continuing to encourage Nintendo Switch hardware sales, Nintendo will also continue supporting Illumination as it works on the next Super Mario Bros. animated film, which is set to release in 2026. It’s also looking forward to the opening of Donkey Kong Country, a new area for Super Nintendo World at Universal Studios Japan, set to open later in 2024.
Beyond these initiatives, Nintendo is set open its special Nintendo Museum later in 2024, and a dedicated Nintendo San Francisco store is targeting launch in 2025. With all of these initiatives, Nintendo hopes to carve out a brighter future, and reverse its year-on-year downturn. While that may only arrive with the announcement of a new Nintendo console, there’s plenty of other developments to watch in the meantime.
