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Last year, Nintendo (NTDOF) faced an unexpected dip in hardware, software, and digital game sales, which significantly impacted the company’s bottom line.
Nintendo’s latest earnings report, released on Nov. 5, revealed its net sales over the last six months declined by about 34%, compared to the same time period last year.
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Its operating profit, which is a company’s profit after paying operating expenses, also shrunk by almost 57% year-over-year.
Related: Nintendo is struggling to sell a product that was once sold out
One key Nintendo product that consumers appeared to lose interest in during that period was the Nintendo Switch, which was first released in 2017 for $299. The gaming console’s unit sales decreased by 31% year-over-year, only selling 4.72 million units. Software sales for the Switch also declined by almost 28%.
The waning demand caused Nintendo to cut its sales expectations for the console for the rest of the fiscal year, which ends in March.
Nintendo now expects to sell 12.50 million Nintendo Switch hardware units, 1 million less than it previously forecasted. It also predicts it will sell only 160 million software units for the console instead of 165 million.
Nintendo finally unveils a highly anticipated product
While the demand for the Nintendo Switch dies down, Nintendo has finally unveiled the product’s successor, Nintendo Switch 2.
The company dropped a trailer for the new product on its website, unveiling a few noticeable changes compared to the first Nintendo Switch.
First and foremost, the console's screen is larger, and the kickstand is now shaped like a handle. Also, there are now two USB-C ports on the device instead of just one.
The Joy-Con controllers, which are attached on each side of the console, appear to magnetically connect to the console. Several buttons on the controllers also appear to be larger to match the increased size of the device. There is also a mysterious new button on the right Joy-Con controller.
Gamers who still use wired headphones can breathe a sigh of relief, as the Nintendo Switch 2 still has a headphone jack and accepts physical game cartridges.
Related: Nintendo delays release of a highly anticipated product due to major risk
“Nintendo Switch 2 plays Nintendo Switch 2 exclusive games, as well as both physical and digital Nintendo Switch games,” said Nintendo in a press release. “Certain Nintendo Switch games may not be supported on or fully compatible with Nintendo Switch 2. Details will be shared on the Nintendo website at a later date.”