Core Viewpoint - Nintendo has revised its annual net profit forecast downward due to a significant decline in sales of its Switch console in the first three quarters of the fiscal year [1][2][3]. Financial Performance - The company has lowered its full-year net profit forecast to 270 billion yen ($1.7 billion) from 300 billion yen [2]. - Over the nine-month period, net profit dropped 42 percent to 237 billion yen, while sales tumbled 31 percent to 956 billion yen [3]. Sales Forecast Adjustments - Nintendo has reduced its Switch hardware sales forecast to 11 million units from 12.5 million units [4]. - The decline in sales is attributed to lower performance compared to the previous fiscal year, which was boosted by popular titles such as "The Legend of Zelda: Tears of the Kingdom" and "Super Mario Bros. Wonder" [4]. Future Product Plans - Nintendo plans to release the successor to the Switch, referred to as Switch 2, in 2025, with more details expected to be revealed in early April [2][5]. - The new console is anticipated to be larger but will maintain a design similar to the original Switch [5]. Market Insights - Analysts suggest that Nintendo was overly optimistic regarding Switch 1 sales when setting the current fiscal year's hardware sales forecast [6]. - The success of the Switch 2 is deemed crucial, as Nintendo has transitioned into a single-platform company without a backup plan in case of failure [6][7].
Nintendo cuts net profit forecast as Switch sales slow