Nintendo reported a significant decline in sales of its aging Switch console during the April-June first quarter, with sales almost halving and profits dropping well below expectations.

The company managed to sell only 2.1 million units of the Switch, which is now in its eighth year, but maintained its full-year sales forecast of 13.5 million units.

Nintendo also announced plans to reveal a successor device within the current financial year. Operating profit took a hit, plummeting by 71% to 54.5 billion yen ($365 million), significantly lower than what analysts had predicted.

The company's mobile and intellectual property-related division also experienced a decline in revenue, dropping by 54% to 14.7 billion yen compared to the same period last year. Serkan Toto, founder of game industry consultancy Kantan Games, mentioned that Nintendo's outlook for the year was overly optimistic and that the pressure is mounting for a potential Switch 2 reveal. The company's upcoming game lineup for the year includes titles like "The Legend of Zelda: Echoes of Wisdom" and "Mario & Luigi: Brothership".

Additionally, a new "Super Mario" film is set to be released in April 2026, with plans for a live-action movie adaptation of "The Legend of Zelda". Amidst rising costs and pricing challenges in the games industry, Sony-owned developer Bungie recently announced a significant workforce reduction.

Nintendo's shares fell by 2.3% in Tokyo prior to the earnings announcement, but have seen a 7.6% increase year to date.