Nintendo profits plunge in a year with no new Animal Crossing

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The Nintendo Switch has been an incredibly successful console for Nintendo. After the failure of the WiiU, the Japanese game company's latest handheld-console hybrid is a complete showstopper. However, it looks like the device’s rampant success is starting to slow down.

Following last year's massive sales boom as a result of Animal Crossing: New Horizons, this year's sales aren’t impressing as much. In fact, this year marks the first decline of Switch sales since the console launched in 2017.

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Nintendo Switch sales drop for the first time

Revealed in the company's latest fiscal report, Switch sales are down compared to this period last year. This period last year saw the release of Animal Crossing: New Horizon just as pandemic life hit, causing a massive surge in sales.

Without that big boom, hardware sales dropped by 21.7%, resulting in just 4.45 million units for this quarter. That lack of an Animal Crossing style viral hit also resulted in a drop in software sales by 10.2%; the company sold 45.29 million units. Last year, Animal Crossing sold over 10 million units.

Furthermore, the company's total revenue dropped. As Nintendo no longer has a backup console – like the 3DS – the count on, everything rides on Switch’s success. This quarter, revenue fell by 9.9% ¥322.6 billion ($2.94 billion). Additionally, operating profit fell by 17 .3% to ¥119.6 billion ($1.09 billion).

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A powerful holiday season?

The iconic Japanese game company is set up to have a powerful end to 2021. Firstly, the company is set to launch the Nintendo Switch OLED console. While not a revolutionary new addition, the improved console should bring in enthusiast gamers to double, or triple-dip into the Switch ecosystem.

Furthermore, Nintendo is planning to release numerous games this holiday season. For example, first-party titles such as No More Heroes III, Metroid: Dread, WarioWare, Mario Party: Superstars, Shin Megami Tensei V and Pokemon Brilliant Diamond and Shining Pearl are all set to release this holiday. That's a lot of games!

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