Fewer sales

Switch outdated: Nintendo lowers profit forecast

Nintendo has lowered its profit forecast due to falling sales of its aging Switch games console. The Japanese electronics company said on Tuesday that it now expects an operating profit of 360 billion yen (around 2.2 billion euros) for the financial year ending March 2025. 

This is ten percent less than previously forecast. In the first six months of the financial year, the Kyoto-based company sold 4.7 million Switch consoles, compared to 6.8 million in the same period last year.

The competitor to Sony's Playstation and Microsoft's Xbox has been on the market for eight years. For the year as a whole, Nintendo expects sales of only 12.5 million Switch devices, seven percent less than the previous forecast.

According to analyst Hideki Yasuda from Toyo Securities, the lack of transparency regarding a new Switch is weighing on Nintendo's share price. Announcing a successor console this year in the middle of the Christmas season is difficult. "You don't want to draw attention to a new console in this important phase."