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Jul 01, 2023

Nintendo sees Switch sales sliding; hails 'Super Mario' movie success

TOKYO, May 9 (Reuters) - Japan's Nintendo Co Ltd (7974.T) on Tuesday said it

TOKYO, May 9 (Reuters) - Japan's Nintendo Co Ltd (7974.T) on Tuesday said it sees a further slide in sales of its aging Switch console to 15 million units in the financial year to end-March 2024, a 17% annual drop that would mark a third consecutive year of decline.

The Kyoto-based gaming firm acknowledged the slowing demand for Switch, now in its seventh year on the market, even as supply chain snarls have eased and the company bolsters its games lineup.

"It's difficult for Switch hardware and software sales to maintain the same pace," Nintendo President Shuntaro Furukawa told a press conference, adding that he still sees room for new users to come to the hybrid home/portable device.

With Switch sales slowing, investor attention is focused on a potential successor to the device, which has sold more than 125 million units.

"Based on the guidance, it is crystal clear the launch of a 'Switch 2' or entirely new piece of hardware can be ruled out this fiscal year," said Serkan Toto, founder of the Kantan Games consultancy.

The robust appeal of Nintendo's roster of characters has been underscored in recent weeks by the box office success of "The Super Mario Bros. Movie", which is helping the company diversify beyond its core console business.

The movie has outperformed expectations, Furukawa said.

On Friday Nintendo launches "The Legend of Zelda: Tears of the Kingdom", one of the most widely anticipated games of the year. Orders for the game are progressing well, Furukawa said.

Meanwhile Nintendo said operating profit fell 15% year-on-year to 504.38 billion yen ($3.73 billion) in the year ended March. The company forecast profit will fall 11% to 450 billion yen for the current financial year.

($1 = 135.0500 yen)

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