Nintendo posts profit miss as it slashes Switch forecast again ahead of console's successor

Nintendo on Tuesday reported weaker-than-expected top and bottom results for its fiscal third quarter, slashing its forecast for the Switch console ahead of the release of its succesor.

Here's how Nintendo did in its fiscal third quarter ended Dec. 31 versus LSEG estimates:

• Revenue: 432.92 billion Japanese yen ($2.8 billion), compared with 498.22 billion yen expected.
• Net profit: 128.53 billion yen, versus 136.16 billion yen expected.

All eyes are on developments regarding the Nintendo Switch 2, the successor to the Switch, which was first released in 2017, and has become one of the Japanese gaming giant's most popular consoles in history.

Nintendo last month teased the Switch 2 in a trailer showing off the hardware. Notably, Nintendo announced that some Switch games will be compatible with the Switch 2. The company has yet to announce a price or release date for the new console.

Nintendo has attempted to maintain momentum for the Switch by releasing slightly updated versions of it and by boosting the appeal of its characters like Super Mario through movies. However, interest in the nearly 8-year-old console is beginning to wane. Nintendo previously cut its forecast for Switch sales for the current fiscal year which ends in March 2025.