Nintendo has kept players interested in its ageing Switch console series through key games with characters such as Super Mario and Zelda.
Charly Triballeau | AFP | Getty Images
Nintendo on Tuesday reported weaker-than-expected top and bottom results for its fiscal third quarter, slashing its forecast for the Switch console ahead of the release of its succesor.
Here’s how Nintendo did in its fiscal third quarter ended Dec. 31 versus LSEG estimates:
- Revenue: 432.92 billion Japanese yen ($2.8 billion), compared with 498.22 billion yen expected.
- Net profit: 128.53 billion yen, versus 136.16 billion yen expected.
Net profit fell 6% year-on-year.
While Nintendo’s quarterly results missed expectations, all eyes are on developments regarding the Japanese gaming giant’s Switch 2, the successor to the Switch, which was first released in 2017, and has become one of the Japanese gaming giant’s most popular consoles in history.
Nintendo last month teased the Switch 2 in a trailer showing off the hardware. Notably, Nintendo announced that some Switch games will be compatible with the Switch 2. The company has yet to announce a price or release date for the new console, but said more details will be revealed at its Nintendo Direct event on April 2.
Nintendo has attempted to maintain momentum for the Switch by releasing slightly updated versions of it and by boosting the appeal of its characters like Super Mario through movies. However, interest in the nearly 8-year-old console is beginning to wane.
Ahead of the release of the Switch 2, Nintendo slashed a number of forecasts for its full-year results which ends on March 31.
Nintendo said it now expects to sell 11 million units of its current Switch console, down from a previously-reduced estimate of 12.5 million units. The company also said it sees net profit at 270 billion yen, a 10% reduction from the prior forecast of 300 billion.
In the December quarter, Nintendo sold 4.82 million Switch consoles, bringing the total for the current fiscal year to 9.54 million units. That is down 30.6% year-on-year.
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