Nintendo Co. slashed its full-year forecasts as sales of its aging Switch console dropped sharply, highlighting the urgency behind its upcoming next-generation gaming system.
The Kyoto-based company reduced its operating profit outlook by 22% to ¥280 billion (US$1.9 billion) for the fiscal year through March. Nintendo also cut its Switch sales target to 11 million units from 12.5 million previously.
For the nine months ended December, operating profit plunged 47% to ¥247.5 billion. Sales fell 31% to ¥956.2 billion despite the tailwind from a weaker yen. Digital sales declined 29% to ¥245.8 billion.
The Super Mario Bros. franchise continued providing bright spots, with the new Super Mario Party Jamboree selling 6.17 million copies since its October release. Mario Kart 8 Deluxe added another 5.38 million units, bringing lifetime sales to 67.35 million.
Nintendo is banking on its next-generation Switch 2 console, announced for release in 2025, to revive growth. The company will showcase the new hardware at a Nintendo Direct presentation on April 2, followed by hands-on events worldwide.
The gaming giant cut its annual dividend forecast to ¥116 from ¥129 per share.
