Nintendo reported a significant drop in sales and profits for its Switch console in the April-June quarter, with sales nearly halving to 2.1 million units and operating profit plunging 71% to 54.5 billion yen ($365 million), well below expectations.
The company maintained its annual sales forecast of 13.5 million units but faces mounting pressure as it anticipates announcing a successor device within the current financial year.
The mobile and IP division also struggled, with revenue falling 54% due to a weaker performance compared to last year’s boost from the “Super Mario Bros.” movie. Analysts predict continued challenges, including a weak July-September quarter, as Nintendo navigates rising industry costs and competitive pressures.
Peoplesmind