Nintendo reported a consecutive fifth quarter drop in net profit up to September, attributing it to waning demand for its Switch console. The company's Q2 operating profit fell 29% year-over-year to 67 billion yen, while net profit plummeted 69% to 27.7 billion yen, missing market estimates of 49.4 billion yen.
Nintendo now anticipates a full-year operating profit of 360 billion yen for fiscal 2025, a dip from the earlier forecast of 400 billion yen. The company also revised its annual Switch sales forecast from 13.5 million units to 12.5 million units, a rarity as the crucial year-end shopping season approaches.
The firm faces challenges in maintaining hardware and software sales as consumers anticipate the next-generation console, set for release in March next year. During the holiday season, competitors Sony and Microsoft plan to roll out sleeker, more powerful products.
Tokyo analyst Serkan Toto noted before the earnings release that the Switch has reached its final phase, making it harder for Nintendo to attract new users. The absence of new titles like Pokémon during the holidays is part of Nintendo's strategy to gear up for new hardware launches.
