Nintendo Switch Game Sales Experience Decline Despite Strong Releases

The software sales did not keep pace when compared to first quarter of last fiscal year.

Nintendo Switch has lived for more than half a decade, managing to compete with last-gen and next-gen consoles in terms of demand and quality. The little giant has certainly achieved milestones once considered unfathomable, single-handedly proving that handhelds are not to be taken lightly in this era.

The fan-favorite portable has sold in high numerals in all the regions, dominating for many a year. With each exhilarating milestone, the Switch has taken over the sales charts with each passing year. The Switch exceeded 25 million sales in Japan recently, for instance. 

However, the Switch’s hardware restraint is beginning to show as the latest generation demands more robust hardware. The mid-life crisis has steadily begun for Nintendo Switch as the hardware sales simmer. Switch sales have dropped down by 20% from the prior year. Partially, the pandemic and recent world events are to blame as well.

The latest Financial Results revealed by Nintendo unveil some alluring points regarding the portable. The software sales are the most alluring. The most anticipated titles, including Nintendo Switch Sports, Mario Strikers: Battle League, and Kirby and the Forgotten Land, contributed highly to Software sales. The sales of Mario Kart 8 Deluxe persisted smoothly. Despite this, the overall Software sales have seen a steep decline.

Nintendo cites, “overall software sales did not keep pace with the strong showing of the first quarter of last fiscal year and totaled 41.41 million units, down by 8.6% year-on-year.” Nintendo also reports that sell-through (sales made to individual customers) increased year-on-year. It reached the second highest podium for the first quarter since the launch of the Nintendo Switch.

The first quarter of last year took the top spot due to the monumental sales of Animal Crossing: New Horizons, which seem improbable to beat anytime soon. The sell-through sales were also boosted to the moon due to the critically-acclaimed newly released titles. Nintendo Switch Sports sold like hot cakes, achieving a worldwide accumulative sell-through of +4 million units in its first 10 weeks.

Nintendo elaborates on the effect of Nintendo Switch Sports, stating, “Since its release, sell-through has remained stable without a significant decline in sales pace, suggesting that the title has the potential for long-term growth in sales.” Digital Sales have also highly contributed to a steady flow of sales for Nintendo.

Digital Sales accumulated 53.0% of total software sales alone, resulting in an upsurge of 16.0% year-on-year to 88.0 billion yen. Moreover, sales of downloadable content versions of packaged games such as Nintendo
Switch Sports and Mario Strikers: Battle League generated a steady revenue. The sales also remained constant for add-on content, including Animal Crossing: New Horizons – Happy Home Paradise.

According to Nintendo, the shortage of semi-conductor chips worldwide is the leading cause of Switch’s dip in sales this year. Though Nintendo has affirmed that the demand remains stable for the handheld. Switch now stands at staggering sales of 111.08m units. Increasing in +3.43m units in the last quarter; a drop from last year’s 4.45m units due to the chip shortage.

What are your thoughts regarding Software Sales? Do let us know your opinions in the comments below.

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Shahmeer Sarfaraz

A computer science student with blooming reverence for fantasy titles. Shahmeer is a fairly new News Writer at eXputer. Flourishing his aptitude for writing with one article at a time. When not covering the latest gaming news, Shahmeer can be found farming away in a heavily modded Stardew Valley.