Nintendo Lowers Profit Forecast to ¥360B, Cuts Switch Sales Target to 12.5M Units

Nov 5, 2024, 07:14 AM

Nintendo has reported a significant decline in profits and sales, leading the company to cut its annual profit forecast by 10% to 360 billion yen ($2.4 billion) from the previous 400 billion yen. In its fifth consecutive quarter of profit decline, operating profit fell 29% in the third quarter to 67 billion yen, while net income in the second quarter was 27.70 billion yen, missing the estimated 49.4 billion yen and down 69% year-on-year to approximately $182.5 million. The company also lowered its Switch sales forecast for the fiscal year to 12.5 million units from the previous 13.5 million units, citing slowing demand for its aging console. Revenue for the first half of 2024 dropped 34.1% to $3.43 billion, and net profit plunged 60% year-on-year, as the Switch enters its eighth year since launch. With revenue in the second quarter down 17% year-on-year to $1.8 billion, fans are now awaiting the announcement of a new console.