Even Nintendo was affected, leading to a decline in the gaming business.
Kyoto, Japan-based company Nintendo expects revenue to decline 19.3% and earnings to decline 38.9% in the fiscal year ending March 31, 2025. Nintendo Switch 2 has May be released this year. In the upcoming fiscal year, Nintendo is expected to sell 13.5 million units.
Nintendo President Shuntaro Furukawa said on Twitter that Switch 2 sales will be announced in the current fiscal year ending March 31, 2025. The Japanese video game company said the outlook was weak is due to slower Switch device and software sales. Operating revenue next year is expected to decline to $2.6 billion on revenue of $8.77 billion. Those numbers fell short of analysts’ expectations.
Earlier this year, Nintendo told its partners to delay the Switch 2 until March 2025 or later, Bloomberg said. In the third quarter, Nintendo earned an operating profit of $418 million, lower than experts’ expectations of $485 million. The company met expectations with Switch sales of 15.7 million units in the fiscal year that just ended March 31. Software is expected to fall from 200 million units to 165 million pcs. During its lifetime, the Switch has achieved sales of 140 million units.
A new report from Nikkei has now corroborated a claim, in addition to revealing some other alleged details about Nintendo’s next console release plans. Specifically, the Tokyo-based store has narrowed the Switch 2 release window to March 2025. Nikkei believes that the timeframe could be extended further, depending on the state of Nintendo’s production capabilities in early 2025. Specifically, the famous Japanese game company is said to be determined to solve the problem of shortages and increase Switch prices after release.