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.