In the first half of the financial year, the Kyoto-based company sold 4.7 million Switch consoles, a decrease from 6.8 million units during the same timeframe last year. Consequently, Nintendo has also lowered its full-year sales projection for the console, now estimating 12.5 million units, which represents a 20% decline from the previous year's actual sales of 15.7 million units.
Additionally, the company has adjusted its annual software sales forecast downward by 3% to 160 million units. Nintendo President Shuntaro Furukawa commented during an online press conference that despite the Switch being in its eighth year, both hardware and software have maintained stable demand and sales. However, he acknowledged that actual sales have not met initial expectations, prompting the revisions.
Furukawa confirmed that there are no changes to the plan for announcing a successor to the Switch within the current financial year, although he did not provide further details.
Analyst Hideki Yasuda from Toyo Securities noted that Nintendo's shares may face continued pressure in the short term, as the announcement of a new console, which could significantly impact stock performance, is unlikely to occur before the end of the calendar year. He emphasized the challenges of making such an announcement during the crucial year-end shopping season.
Ahead of the earnings report, Nintendo's shares fell by 3.9%, underperforming compared to the Nikkei average, which saw a gain of 1.1%.