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TOKYO - Japan's Nintendo said sales of its aging Switch console almost halved in the April-June first quarter and profit slumped, falling far short of estimates.
The gaming giant sold just 2.1 million units of the Switch, which is in its eighth year, during the quarter but maintained its full-year sales forecast for 13.5 million units.
Nintendo has said it plans to make an announcement about a successor device in the current financial year.
Operating profit tumbled 71% to 54.5 billion yen ($365 million), more than a third below analysts' estimates.
Its mobile and intellectual property-related division also had a weak showing with revenue sliding to 14.7 billion yen, down 54% from the same period a year earlier when profit was boosted by the hit "Super Mario Bros." movie.
The company has a thin pipeline of titles announced for this year, with upcoming games including "The Legend of Zelda: Echoes of Wisdom" and "Mario & Luigi: Brothership".
A new "Super Mario" film is due for release in April 2026. The company has also said it would collaborate on a live-action movie of "The Legend of Zelda".
The games industry is grappling with rising costs and weak pricing power. Sony-owned developer Bungie announced this week it is cutting almost a fifth of its workforce.
Shares in Nintendo fell 2.3% in Tokyo ahead of the earnings announcement and are up 7.6% year to date. ($1 = 149.0800 yen)
(Reporting by Sam Nussey; Editing by Muralikumar Anantharaman and Edwina Gibbs)