Nintendo lowers forecasts amid diminishing Switch sales

(Sharecast News) - Nintendo lowered its profit and sales forecasts for the year ending next March on Tuesday, reflecting diminishing demand for its seven-year-old Switch console. The Japanese video gaming giant cut its projected annual operating profit by 10% to JPY 360bn (£1.82bn), and reduced its Switch sales target by nearly 7% to 12.5 million units, down from an initial estimate of 13.5 million.

In its quarterly results, Nintendo reported revenue of JPY 276.7bn, slightly above analyst estimates, but net profit plunged 69% year-on-year to JPY 27.7bn.

The Switch, while Nintendo's second-best-selling console, faced slowing momentum, with 4.7 million units sold in the first half of the financial year, compared to 6.8 million in the same period last year.

Nintendo attributed last year's stronger performance to the success of the 'Super Mario Bros Movie' and the popular release of 'The Legend of Zelda: Tears of the Kingdom', effects which were now fading.

Investors and fans were left eagerly awaiting news on a successor to the Switch, although Nintendo president Shuntaro Furukawa confirmed that the company remained on track to announce its next console by the end of the financial year in March.

However, analysts suggested the timing could shift further, potentially to early 2025, to avoid disrupting the critical holiday sales season.

While Nintendo's release schedule included some smaller titles, the absence of major new games this season could impact its ability to reach the revised Switch sales goal.

Reporting by Josh White for Sharecast.com.