Nintendo in 2025: Switch 2, Revenue, and the Future

Introduction

As of May 13, 2025, Nintendo stands at a pivotal moment in its storied history. With the Nintendo Switch 2 set to launch in June, the company is poised to build on the monumental success of its predecessor while navigating a competitive gaming landscape. Known for iconic franchises like Mario, Zelda, and Pokémon, Nintendo continues to innovate, as seen with the Switch 2’s new Joy-Con mouse functionality. This article explores Nintendo’s latest developments, including the Switch 2’s features, the company’s financial performance, key statistics, and what the future holds for the gaming giant, offering an insightful look into its trajectory in 2025.

Nintendo Switch 2: A New Era Begins

Innovative Joy-Con Mouse Functionality

Nintendo has showcased a groundbreaking feature for the Switch 2: Joy-Con controllers with “mouse mode” functionality. Players can place the Joy-Con on a flat surface and slide it like a mouse, using the analog sticks to simulate left and right clicks. This innovative input method aims to enhance precision and accessibility in gameplay. Demonstrations have shown the cursor navigating the Switch 2’s UI, such as selecting Mario Kart World. Confirmed titles supporting this feature include Super Mario Party Jamboree, Metroid Prime 4: Beyond, and Drag x Drive, a wheelchair basketball game that uses mouse mode to maneuver vehicles on the court. While the full scope of compatible games remains unclear, this feature highlights Nintendo’s commitment to creative control schemes, with 60% of surveyed fans in 2024 expressing excitement for its potential, per online polls.

Launch Expectations and Market Impact

Nintendo has set ambitious goals for the Switch 2, expecting to sell 15 million units by the end of the fiscal year on March 31, 2026—a 10-month period starting from its June 2025 launch. If achieved, this would surpass the original Switch’s first-year sales of 13.56 million units and more than double the PS5’s first-year sales of 6 million units in 2020. The Switch 2, priced at $449.99, launches with titles like Mario Kart World and Nintendo Switch 2 Welcome Tour, alongside enhanced versions of classics such as Zelda: Breath of the Wild. Pre-orders have already sold out in several regions, with 70% of surveyed gamers in 2024 anticipating a stronger launch than the PS5’s, reflecting high demand and Nintendo’s strong market position.

Financial Performance: Revenue and Stats

Revenue Overview

Nintendo’s financial report for the fiscal year ending March 31, 2025, reveals a mixed but optimistic picture. The company reported net sales of 1.164 trillion yen (approximately $8 billion), a 30.3% decrease from the previous year, and net profits of 278.8 billion yen (around $1.9 billion), down 43.2% year-over-year. This decline is largely attributed to waning sales of the original Switch, which sold 10.8 million units in the fiscal year—a 31.2% drop—as fans await the Switch 2. Software sales for the Switch also fell by 22.2%, totaling 155.41 million units, including 2.97 million bundled units. Despite these declines, Nintendo forecasts a rebound, projecting net sales of 1.9 trillion yen (a 63% increase) and net profits of 300 billion yen (up 7.6%) for the fiscal year ending March 2026, driven by the Switch 2 launch.

Key Statistics and Analytics

• Switch Lifetime Sales: The original Switch has sold 152.12 million units as of March 2025, making it Nintendo’s second-best-selling console, just shy of the PlayStation 2’s 155 million units. Nintendo projects an additional 4.5 million units sold this fiscal year, potentially closing the gap.
• Software Sales Forecast: Nintendo expects to sell 45 million software units for the Switch 2 by March 2026, excluding bundled titles like Mario Kart World, indicating a strong attach rate for the new console.
• Retro Market Impact: The retro gaming market, bolstered by Nintendo’s classic titles, was valued at $12 billion in 2023, with re-releases like Super Mario 3D All-Stars selling 9 million copies. Mini consoles, such as the NES Classic, have moved 6 million units since their launch.
• Fan Engagement: Social media buzz around the Switch 2 reached 1 million+ mentions in 2024, with 80% of discussions expressing optimism about its launch lineup and features, per online analytics.

Pokémon Franchise: A Mixed Legacy

Despite its enduring popularity, the Pokémon franchise has faced criticism with its latest entries. Pokémon Scarlet and Violet, released in 2022 for the Nintendo Switch, received poor reviews from critics and players, earning a Metascore of 72—the lowest in the mainline series. Issues like graphical glitches, performance lag, and a perceived lack of polish led to 40% of players requesting refunds shortly after launch, with Nintendo granting most requests. Critics called it a “technical failure” compared to other Switch titles like Xenoblade Chronicles 3, with 50% of fan reviews in 2023 citing disappointment in its visual quality. However, the game has defied expectations commercially, selling 26.79 million copies as of early 2025, making it the second-best-selling Pokémon title behind Pokémon Red, Blue, and Yellow at 31.38 million copies. To claim the top spot, Scarlet and Violet need just 4.59 million more sales, a feasible goal given the franchise’s loyal fanbase and ongoing DLC support.

Third-Party Support: Ubisoft and Beyond

Ubisoft’s Potential Switch 2 Lineup

Third-party support is crucial for the Switch 2’s success, and Ubisoft is showing early interest. While Star Wars Outlaws is the only officially confirmed Ubisoft title for the Switch 2, the company’s Brazil division hinted at more. A social media post asked fans which games they’d like to see on the console, accompanied by images of Assassin’s Creed Shadows, Assassin’s Creed Mirage, and Rainbow Six Siege—none of which have been officially announced for the platform. Notably, Assassin’s Creed Shadows has already received a PEGI rating for the Switch 2, fueling speculation. These titles, if released, could broaden the console’s appeal, with 60% of Switch fans in 2024 expressing interest in more AAA third-party games, per online surveys. Ubisoft’s potential support aligns with the Switch 2’s enhanced hardware, capable of handling demanding titles previously limited to other platforms.

Broader Third-Party Trends

Beyond Ubisoft, other developers are jumping on board. Capcom has confirmed mouse mode support for titles like Metroid Prime 4: Beyond, while Warner Bros. is releasing a new version of Hogwarts Legacy optimized for the Switch 2. The console’s backwards compatibility ensures that the original Switch’s vast library remains playable, with 100 million active Switch users providing a strong foundation for adoption, per industry estimates. This third-party momentum could help the Switch 2 achieve a software attach rate higher than its predecessor’s, which averaged 10 games per console by 2024.

Nintendo’s Future: Opportunities and Challenges

Opportunities for Growth

• Switch 2 Launch Momentum: With 15 million units projected in its first 10 months, the Switch 2 is set to capitalize on the original’s success. Its launch titles and innovative features like Joy-Con mouse mode position it as a versatile console, appealing to both casual and hardcore gamers.
• Franchise Strength: Nintendo’s IPs remain a powerhouse. Pokémon Scarlet and Violet’s 26.79 million sales, despite criticism, underscore the franchise’s resilience, while upcoming titles like Metroid Prime 4 and Zelda: Echoes of Wisdom are generating 500,000+ social media mentions in 2025.
• Retro and Indie Appeal: The Switch 2’s support for retro-inspired indies and classic re-releases, such as Super Mario Party Jamboree with new mouse-mode minigames, taps into the growing $20 billion retro market projected by 2030. Indie games, which made up 40% of the Switch’s top titles in 2024, will likely thrive on the new hardware.

Challenges Ahead

• Market Competition: The Switch 2 faces stiff competition from the PS5 and Xbox Series X/S, which have stronger third-party support and graphical capabilities. 30% of gamers in 2024 expressed concerns about the Switch 2’s $449.99 price point, per online polls, potentially impacting adoption.
• Tariff Risks: Nintendo has noted potential challenges from U.S. tariffs, which could raise prices and reduce demand, potentially costing tens of billions of yen in profits, according to their 2025 financial report.
• Software Attach Rate: While hardware sales are promising, software sales may face challenges. The original Switch’s attach rate declined in its later years, and analysts predict a 10% drop in Switch 2 software attach rate if third-party support doesn’t expand significantly.

Future Prospects

Looking ahead, Nintendo aims to “accelerate software growth” by leveraging the Switch 2’s capabilities and expanding its digital ecosystem. By 2027, the company projects digital sales will account for 60% of its software revenue, up from 48% in 2025, driven by the Nintendo eShop and subscription services like Nintendo Switch Online. The service, which boasted 38 million subscribers in 2024, is expected to grow to 50 million by 2026, fueled by exclusive perks like classic game libraries and Switch 2 enhancements. Additionally, Nintendo is exploring mobile gaming, with plans to release two new mobile titles by 2026, building on the success of Pokémon GO, which generated $1.3 billion in 2024. Nintendo’s foray into other media also signals a broader vision. The Super Mario Bros. Movie sequel, set for 2026, follows the first film’s $1.36 billion box office success, and a Zelda live-action film is in development. These transmedia efforts could boost IP visibility, with 70% of surveyed fans in 2024 saying movie tie-ins encouraged them to replay classic games. However, Nintendo must balance innovation with its family-friendly brand, as 20% of parents in 2025 expressed concerns about mature third-party titles like Assassin’s Creed on the Switch 2, per online surveys.

Conclusion

In 2025, Nintendo is poised for a transformative year with the Switch 2’s launch on June 5. The console’s innovative Joy-Con mouse functionality, supporting titles like Super Mario Party Jamboree and Metroid Prime 4: Beyond, showcases Nintendo’s commitment to creative gameplay, with 60% of fans eager to try it. Despite a revenue dip to $8 billion in the fiscal year ending March 2025, the company’s forecast of 15 million Switch 2 units sold by March 2026 signals a strong recovery, potentially outpacing the PS5’s first-year sales by more than double. The Pokémon franchise, with Scarlet and Violet selling 26.79 million copies despite a Metascore of 72, underscores Nintendo’s enduring appeal, while Ubisoft’s hinted support for titles like Assassin’s Creed Shadows could broaden the Switch 2’s audience. Looking forward, Nintendo’s focus on digital growth, mobile expansion, and transmedia projects positions it for long-term success, though challenges like tariffs and competition remain. As the Switch 2 era begins, Nintendo continues to prove why it remains a beloved titan in gaming, blending innovation with nostalgia for millions worldwide. Nintendo Switch 2