Nintendo posted earnings guidance below analysts’ estimates and signaling it would not introduce a new model of the Switch game console at a June trade show.
Operating profit was 29.7 billion yen ($266 million) in the three months ended March. For the current fiscal year, operating profit will be 260 billion yen.
A cheaper version of the Switch, a stronger lineup of games and a potential entry into China was expected to help the Japanese company overcome last year’s missteps and broaden its customer base. But President Shuntaro Furukawa tamped down those expectations after the results, saying the China launch is far off and there’s no plan to unveil a new Switch at the Electronic Entertainment Expo in the U.S.
Nintendo expects to ship 18 million Switch consoles in the current year. It shipped 17 million units last year. The company sold 119 million software units last fiscal year. The company expects to sell 125 million in the current period.
Nintendo also confirmed it is working with Tencent Holdings Ltd. to sell the Switch in China, but said there’s no timeline for a launch.
Smartphone game revenue grew 24 percent in the latest quarter from a year ago to 12.7 billion yen. Nintendo plans to release two mobile games this summer: Dr. Mario World and Mario Kart Tour. On Thursday, Nintendo confirmed it will begin a closed beta test of the app from May 22.
With no new 3DS titles scheduled for the coming year, the company is signaling the end for the eight-year-old handheld device. Revenue from the 3DS business was 63 billion yen in the fiscal year ended March, down 67 percent from the prior period.