Nintendo has revised its profit outlook for the fiscal year ending in March 2025, reducing its forecast by 10% to 360 billion yen ($2.36 billion) as sales of its aging Switch console continue to slow.
The Kyoto-based gaming company, facing declining demand for the nearly eight-year-old console, sold 4.7 million units in the first half of the fiscal year, down from 6.8 million units in the same period last year.
This marks the fifth consecutive quarter of profit declines for Nintendo, with its September quarter operating profit falling to 67 billion yen, below market expectations of 71.8 billion yen. The company also lowered its full-year sales projection for the Switch to 12.5 million units, down from an initial forecast of 13.5 million.
The Switch console, which has been a mainstay in the gaming market since its 2017 release, is struggling to maintain sales momentum amid intensifying competition from rival consoles by Sony and Microsoft. Tokyo-based analyst Serkan Toto noted that the Switch has entered its “final stretch,” as fewer new consumers are drawn to buy the console. Nintendo has yet to release any major new titles for the holiday season and is holding off on announcements related to its next-generation hardware, anticipated by the end of the fiscal year.
To diversify its revenue streams, Nintendo has recently expanded into various ventures. These include products such as “Alarmo,” a Nintendo-themed alarm clock, a Nintendo Music smartphone app for online subscribers, and the opening of a museum near its headquarters. Nintendo has also increased its presence in Hollywood, following the success of The Super Mario Bros. Movie. It is collaborating with Illumination to produce a new animated film based on The Legend of Zelda and is developing a live-action adaptation of the same franchise.
Despite the decline in console sales, Nintendo’s software lineup has provided some support. The release of The Legend of Zelda: Echoes of Wisdom with a themed Switch Lite boosted sales in the second half of the fiscal period, with the game itself selling 2.58 million units. However, overall software sales still saw a significant year-on-year decline of 27.6%, prompting Nintendo to adjust its full-year software sales forecast to 160 million units, down by 5 million.
With the holiday shopping season approaching, Nintendo hopes to reach its revised target of 12.5 million Switch unit sales before its next hardware launch.
With input from Reuters, Bloomberg, and Nintendo Life.
