The Japanese company adjusted its profit forecast for the year ending March 2025 to 280 billion yen (£1.45 billion), down from 360 billion yen (£1.9 billion), and also reduced its sales forecast for the popular Nintendo Switch by 12%.
Last month, Nintendo confirmed the long-speculated Switch 2 is set to launch in 2025 and shared a brief teaser video showcasing the new device, which features a bigger screen and upgraded controllers, though the price is still under wraps.
A full reveal of the console is expected at an event in April.
Since its debut in 2017, the Switch has been a massive hit for Nintendo, selling around 150 million units, thanks to its unique blend of home console and portable gaming through a docked setup.
However, sales have recently slowed as the hardware has seen only minor updates, with many consumers opting to hold off for details on the now-confirmed Switch 2. Nintendo has also stated that the new console will support backwards compatibility, allowing players to enjoy some current Switch games on the upcoming system.
In its latest report, Nintendo revealed that Switch hardware sales dropped by 30% in the nine months from April to December 2024 compared to the same timeframe the previous year.
Despite the dip in hardware and software sales, Nintendo noted that the number of active users has continued to grow, now reaching 129 million.
The company emphasized that even though sales haven't met expectations, the Switch remains popular among many gamers, and it plans to keep rolling out new content to encourage even more people to keep playing.