Nintendo profit plunges 55% as sales of its ageing Switch console fall sharply

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Nintendo revenue and profit plunged in the company's fiscal first quarter, as sales of the ageing Switch console decline.

Here's how Nintendo did in its fiscal first quarter ended June 30. versus LSEG estimates:

• Revenue:  246.6 billion Japanese yen ($1.65 billion) versus 289.61 billion yen expected.
• Net profit:  80.9 billion Japanese yen versus 70.73 billion yen expected.

Net sales lost 46.5% year-on-year, while net profit fell 55.3%.

Nintendo sold 2.1 million units of its flagship Switch consoles, down 46% on the year.

Investors are looking out for news surrounding a successor to Nintendo's ageing but highly successful Nintendo Switch console. The company has previously said that the next-in-line device will be announced in the current fiscal year, which ends in March 2025.

Nintendo also previously said that it expects to sell 13.5 million units of the existing Switch console model in this period.

The Switch is now more than seven years old and is the company's second-most successful console by unit sales, after the Nintendo DS. Throughout its lifetime, Nintendo has revamped the Switch with a better display and ridden the wave of popularity of games featuring well-known characters like Mario and Zelda, which helped sustain sales on the long term.

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