Nintendo encountered disappointing results for its fiscal third quarter on Tuesday. It fell short of expectations for both revenue and profit as it revised its sales forecast for the Switch Console ahead of the expected launch of its successor.
Here is a comparison of performance by Nintendo for the fiscal third quarter which ended on December 31 against LSEG estimates.
Besides this, new profit also saw a decline of 6% year-over-year. Despite the quarterly results not meeting the projections, the spotlight is firmly on the upcoming Switch 2. It is the successor to the immense popular Switch which made its debut in 2017 and now has become one of the best-selling consoles of Nintendo.
Last month, Nintendo teased the Switch 2 in a trailer that showcased the new hardware. More importantly, the company revealed that several existing Switch games will be playable on the Switch 2. The price and release date for the new console have not been announced yet. Nintendo has promised that they will share more information during its Nintendo Direct event on April 2.
To keep the momentum of the Switch alive, Nintendo has released slightly upgraded versions and enhanced the appeal of its iconic characters such as Super Mario, through film adaptions.
However, enthusiasm for the nearly eight-year-old console is beginning to fade. Nintendo in light of the impending release of Switch 2 has lowered several forecasts for its full-year results, which concludes on March 31.
The company is expecting to sell 11 million units of the current Switch console which is less than the previous estimate of 12.5 million units. In addition to this, it also projects a net profit of 270 billion yen which reflects a 10% cut from the earlier forecast of 300 billion yen.
