After more than two years of smashing records, sales for the hit Nintendo Switch console are starting to slow.
Nintendo reported its year-end financial results Thursday and revealed that it sold 16.95 million Switch consoles, a 12.7 percent increase over the year before, but below analyst expectations of 17.5 million. Powered by hits like Super Smash Bros. Ultimate, Nintendo sold 118.55 million games in its fiscal year, an 86.7 percent increase over last year, but also below analyst expectations of 121 million.
The latest sales bring the Switch, the fastest-selling console ever in the U.S., to 34.74 million units sold since it was launched just over two years ago. The company has now sold a total of 187.52 million games.
Nintendo stock dropped 5 percent following the company’s annual earnings report.
Nintendo has a couple cards up its sleeve to juice Switch sales in the future, but it appears they won’t be played anytime soon. Nintendo is working with tech giant Tencent to bring the Switch to China, and the company is also developing new versions of the console.
However, Nintendo President Shuntaro Furukawa threw some cold water on those expectations, saying the company still has regulatory hurdles to clear before a China launch can happen. And there’s no plan to unveil a new Switch at the big E3 show next month.
Nintendo also fell short on another key metric, posting 250 billion yen ($2.2 billion U.S.) in operating profit, up 41 percent over the prior year but below the 350.2 billion yen ($3.1 billion) expected by analysts. Revenue for the year rose 13.7 percent to 1.2 trillion yen ($10.8 billion U.S.).
Nintendo expects its key metrics to slow even more in the next year. The company forecasted annual increases of 4.1 percent for both revenue and operating profit.