Nintendo has cut its full-year earnings and revenue outlook, underscoring uncertainty around its aging Switch console and the global gaming environment.
The Kyoto-based company said it missed console sales targets toward the year’s end, a sign the Switch is flagging after a six-year run despite a consistent pipeline of software hits. It now expects operating income of ¥480 billion ($3.6 billion) for the year ending in March, down from ¥500 billion previously. It’s projecting net sales of ¥1.6 trillion, down from ¥1.65 trillion.
Investors are focusing on the Switch’s sales momentum in the coming fiscal year. Nintendo has sat out a broader rally in tech stocks this year and may remain stuck in the doldrums until it unveils a successor to the Switch, which has seen sales declining over the past two years. The company expects to end the year with about 18 million consoles sold, down from an earlier 19 million target.