Nintendo announced on Tuesday a downward revision for its Switch sales forecast, projecting 12.5 million units for the fiscal year ending March 2025—down from a previous estimate of 13.5 million units. The seven-year-old console is seeing waning demand, and investors are eagerly awaiting news of a potential successor, which Nintendo has said will be announced within this fiscal year. Alongside reduced hardware expectations, the gaming giant also slashed full-year sales and operating profit forecasts, now anticipating sales of 1.28 trillion yen, down from 1.35 trillion yen, and operating profit cut to 360 billion yen from 400 billion yen.

In its latest earnings report, Nintendo recorded a revenue drop of 17% year-over-year to 276.7 billion yen and a net profit plunge of over 69%, partly due to a lack of recent blockbusters. While characters like Mario and Zelda helped sustain interest last year, Nintendo acknowledged the “special factors” boosting sales have since faded. Sales of the Switch fell to 4.72 million units in the six months ending Sept. 30, down from 6.84 million in the same period the previous year. The company remains focused on extending its intellectual properties, with new ventures in movies and theme parks and a Super Mario movie slated for 2026.