Nintendo reported disappointing financial results for its fiscal third quarter, missing expectations on both top and bottom lines. For the quarter ending December 31, the gaming giant revealed a net profit of 128.53 billion yen, falling short of the anticipated 136.16 billion yen. Revenue also missed the mark, generating 432.92 billion yen ($2.8 billion) against expectations of 498.22 billion yen as estimated by LSEG.
The company has adjusted its sales forecast for the Nintendo Switch console, as anticipation grows for its successor, the Switch 2. Originally launched in 2017, the Switch has etched its place as one of Nintendo's most successful consoles. However, with interest in the nearly eight-year-old device waning, Nintendo has previously reduced its sales projections for the current fiscal year, concluding in March 2025.
Nintendo intends to prolong the appeal of the Switch by releasing slightly updated versions and ensuring that some games remain compatible with the upcoming Switch 2. The company has yet to disclose a price or release date for the new console, though it did offer a teaser trailer last month showcasing the hardware.
In an effort to sustain its momentum, Nintendo has capitalized on its iconic characters, such as Super Mario, through strategic ventures like movies. As the company navigates these challenges, it continues to focus on bolstering its brand through diverse entertainment offerings.