Nintendo Reports Drop In Sales For Q1- Should We Be Worried?

"Should We Be Worried"

I'm no shareholder therefore no lol

So, should we be worried? Well, no, not really.
You answered it yourself ^

Oh and a global recession and inflation and high cost of living and hardware shortages.

@Fizza Ha, was about to put the exact same as you there.

But anyways, this article is just scare click bait

NINTENDOOOOOOMED! IMO, it’s probably reaching market saturation. Most who want a switch, already have one.

Do Nintendolife writers actually communicate with each other or maybe not even like each other? 2 articles posted within minutes of each other with this one basically trolling the other and vice-versa.

Please stop asking if we should be worried over video games. It really isn't healthy.

can't blame the pandemic forever eventually Nintendo will have to accept people are starting to move on from 2017 Switch

Multi-billion dollar company reports small drop in sales.

"Should we be worried?"

Have to be honest, I'm more worried about my energy bills and the cost of living crisis.

I don't see the semiconductor shortage being an issue for the switch. It is readily available everywhere for people to buy.

The Switch is just naturally reaching the end of its lifecycle like every other console does eventually.

It’s a 5 year old console, of course sales are dropping.

Once the Switch Pro is released sales will pick up again.........yes I went there
😜

Nintendo just hasn't brought out a game that has massively appealed to new audiences the same way Mario Kart 8 Deluxe, Super Smash Bros. Ultimate, and Animal Crossing: New Horizons did. Most of the games released this year aren't necessarily going to sell the Switch consoles itself and seem to focus more on the current demographics of the Switch owners.

@Freek
As much as I hate that concept, it is one area Nintendo hasn't completely touched yet.

@ModdedInkling Just wait till Nintendogs Unleashed gets announced!

Not really. The console even at these lowered sales are about to overtake the PS4 and Gameboy in lifetime sales by the end of the year. The Switch is also been out for over 5 years, a small sales decline is to be expected

The real test will be Q4 sales of hardware / software during winter months as people battle raising living costs.

Sales will be always Up and Down and Up and Down and Up....
(Play the song Up & Down by Vengaboys)

Not at all. Of course sales are going to be down when people aren't buying video games and systems as much since they can actually do things outside now. Numbers were inflated during the pandemic, now they are becoming more normal. I also find it funny that they blame it on the semiconductor shortage when they could just be honest and say that. Plus, you can easily get a Switch, unlike the new gen systems that are actually still hard to get.

“So, should we be worried? Well, no, not really.”

I'm not surprised their revenue from mobile games dipped. They discontinued Dr. Mario World and Dragalia Lost and released Pikmin Bloom this past year. They traded two mobile games that had some incentive to make in-app purchases for one that has absolutely no incentive to do so. Guess which mobile game is probably next on the chopping block.

If there was a drop in sales combined with it being hard to acquire a new console in stores then i would agree. However the truth is I can get a Switch in multiple models and multiple stores without having to preorder which means there’s less demand for the console. Nintendo can deny all they want but they need to ready Switch U for Xmas next year

22.9% YoY is a big drop. I don't see it surpassing PS2 total sales but who knows. Anyway maybe its time to move on. Switch is great but its like 2 generations behind the competition already

We just entered a recession, so a little worry might not hurt.

this is good news it will force nintendo to think about releasing a modern switch sooner then later

@BartoxTharglod @mariomaster96 The success of Nintendo and the shareholders can have a huge affect on the games and hardware available from Nintendo, not to mention prices. So... there can be reason to worry.

I will say that Nintendo "against the ropes" like during the Wii U disaster years gave me some of Nintendo's favorite work like Splatoon and BotW and especially their marketing at the time. (Nintendo Direct). So, that helps.

I'm more concerned about the transition to new hardware. I don't think it is at all clear what even a "safe" next step should be. I can only say what I want, and I'm pretty sure that wouldn't be a strong next step (high performance non-portable console )

Why would I be worried?!

I assume most people here already own a Switch (why would they be here otherwise).

It hit a 52W low today on the US exchange. NTDOY traditionally doesnt go lower than 53. They have a great dividend and a solid balance sheet. It may be a good time to join the company. I probably will buy 100 this week. cheers

I am worried x

It's 5 years old & has sold incredibly well surprised everyone & their dog don't have one by now

Why would we be worried about a multi-million dollar company making slightly less money than usual?

I think the chip shortage is an easy excuse and agree with others who say there is plenty of available stock in the retail supply chain (at least in the USA). I think the age of the system, market saturation, no mega seller games so far this year, and just the general state of the economy are all factors. PS5 (and to a lesser extend XBX) are the ones facing restricted sales due to chip supply issues. $ony only predicted 12M unit sales for the current fiscal year and they would easily be getting closer to 20M or more if they had the stock. Nintendo often sells 1/2 of its system sales for the fiscal year in the holiday QTR. This year will be strong with a mainline Pokemon title and then other long awaited games like Splatoon 3 (remember that game does well world wide but absolutely slays in Japan) and hardcore niche title Bayo3. Everyone who owns a Switch wants a Super Switch Pro 2.0 U......they best get busy on delivering something next year as that window will eventually start to close and with the next BOTW game and MP4 both coming next year, what better time to release new hardware.

There's also the fact that inflation is high throughout the world for the most part so we are all feeling tightening of our budgets. I just don't have as much money to spend on video games, etc after spending so much more for groceries, etc.

@QuickSilver88,

It's not all about the chips, it's other components as well, the Switch is 5 years old and still in demand. sales will start to fall but I still see Nintendo selling 20 million or so this year.

As for a Switch Pro affecting things I am not so sure, that's always been a core fans wet dream more then anything else, and was pretty much born in the rumor and speculation before the Switch came out, it's just a rumor that has failed to die.

The wider mass market could not care less about a more powerful Switch.

I hope Nintendo struggles enough to stop being complacent. The slow drip of games, both retail and NSO may speed up. They might release a budget release of some of the oldies that still cost $60. They might do more than add a little paint to a console and call it a special edition. They might bring some of their franchises out of the vault, along with re-releasing some GameCube games. They might release joycon plus that work better and have sturdier build quality. Nintendo need to be shaken up.

@BartoxTharglod But a lot Switch's most popular games are available on Wii U too in some form; Super Smash Bros, LoZ Breath of the Wild, Mario Kart 8, Donkey Kong Tropical Freeze, Pikmin 3 etc (even Splatoon 2 isn't much more than an expansion to the Wii U game from what I've heard).

To put this all into context, since launch the first quarter Switch sales are as follows.

FY 17-18 1.96 Million

FY 18-19 1.88 Million

FY 19-20 2.13 Million

FY 20-21 5.67 Million

FY 21-22 4.45 Million

FY 22-23 3.43 Million

All that stands out to me is the boost the pandemic had, and the affect of a game like Animal Crossing released at the same time, Not sure I remember many consoles outside of the Wii and DS, that have sold 3.4 million consoles in the first quarter when around 5 plus years old.

No but I appreciate the dip in stock price so I can make a few purchases.

I don't think it's just that. Global recession is a big one. During Covid I had a much better cashflow for non essential items like games and hobbies. Now I'm in my final year of university and it costs $200CAD to fill my gas tank. As much as I want to play the new Kirby, Pacman and Pokemon there's no $$$ to make it happen.

@BartoxTharglod The comparison I was making was Switch to Wii, and Switch 2 to Wii U, not Switch to Wii U. Acting like success of Nintendo (profits) won't affect fans of Nintendo games is a big blind disconnect. Nintendo roles the dice on hardware and that shapes the games they make for it — every time. Sometimes it works great, sometimes it doesn't.

Not trying to make anyone worry, but it does generate my interest. What I might want Nintendo hardware to become might be different from what you want. Spikes or drops in the ability for Nintendo to profit as expected, could mean years of delay or a radical hardware shift that is right for some and not for others. It's all happened before.