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The
Kyoto-based gaming company sold just 2.1 million units of the
Switch, which is in its eighth year, during the quarter but
maintained its full-year sales forecast for 13.5 million units.
The company has said it plans to make an announcement about a
successor device in the current financial year.
Operating profit tumbled 71% to 54.5 billion yen ($365 million),
more than a third below analysts' estimates.
Its mobile and intellectual property-related division also had a
weak showing with revenue sliding to 14.7 billion yen, down 54%
from the same period a year earlier when profit was boosted by
the hit "Super Mario Bros." movie.
"Nintendo were too optimistic about the current year," said
Serkan Toto, founder of game industry consultancy Kantan Games.
"The numbers increase the pressure on Nintendo regarding a
Switch 2 reveal," he said, adding that the July-September
quarter was also likely to be weak.
Nintendo has a modest pipeline of titles announced for this
year, with upcoming games including "The Legend of Zelda: Echoes
of Wisdom" and "Mario & Luigi: Brothership".
A new "Super Mario" film is due for release in April 2026. The
company has also said it would collaborate on a live-action
movie of "The Legend of Zelda".
The games industry is grappling with rising costs and weak
pricing power. Sony-owned developer Bungie announced this week
it is cutting almost a fifth of its workforce.
Shares in Nintendo fell 2.3% in Tokyo ahead of the earnings
announcement and are up 7.6% year to date.
($1 = 149.0800 yen)
(Reporting by Sam Nussey; Editing by Muralikumar Anantharaman
and Edwina Gibbs)
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