KEY TAKEAWAYS

• Nintendo cut its annual forecasts for Switch sales, reflecting declining demand for the Japanese videogame maker’s once-hit console.

• The Japanese videogame maker said it now expects to sell 12.5 million Switch consoles for the fiscal year ending March 2025, versus the 13.5 million units forecast it announced previously.

• Nintendo’s woes will be closely watched by competitors such as Electronic Arts, whose popular titles include "Madden NFL," and Take-Two Interactive Software, the developer of the "Grand Theft Auto" series.

Nintendo (NTDOY) cut its annual forecasts for Switch sales, reflecting declining demand for the Japanese videogame maker’s once-hit console.

The company said it now expects to sell 12.5 million Switch consoles for the fiscal year ending March 2025, versus the 13.5 million units forecast it announced previously.

The downbeat forecast for the almost eight-year-old console came as Nintendo announced a 60% drop in net profit for the first half of its fiscal year ending Sept. 30 and cut its projections for full year sales and operating profit.

Nintendo's Woes Likely to Be in Focus by Rivals

"Although Nintendo Switch hardware and software unit sales through the first half of the fiscal year were both below our initial expectations, many people continue to play with Nintendo Switch even in its eighth year since launch," Nintendo said in a statement.

Switch hardware sales dropped 31% to 4.72 million units and software sales fell 28% to 70.28 million copies during the first half of Nintendo's fiscal year.

Nintendo’s woes will be closely watched by competitors such as Electronic Arts, Inc. (EA), whose popular titles include "Madden NFL," and Take-Two Interactive Software (TTWO), the developer of the "Grand Theft Auto" series . Shares of both were little changed in premarket trading.