Nintendo Cuts Switch Sales Forecast Ahead of New Console Launch
Nintendo has lowered its annual Switch sales projection by 12% to 11 million units as the current console approaches the end of its life cycle. The company relies heavily on its console business, despite diversifying into retail stores and licensing its characters for attractions and movies.
"Although hardware and software sales have remained stable in the eighth year, we did not meet our target," said Nintendo President Shuntaro Furukawa. During the April-December period, Nintendo sold 9.54 million Switch units, reaching a total of 150.86 million units sold since launch.
Nintendo recently announced the release of a Switch successor this year, teasing it during a Nintendo Direct event scheduled for April 2. The Switch 2 reportedly resembles its predecessor's design, which revitalized Nintendo's performance after the underperforming Wii U.
Nintendo has also lowered its operating profit forecast by 22.2% to 280 billion yen ($1.8 billion) for the fiscal year ending in March. For the April-December period, profit declined by 46.7% to 247.6 billion yen.