Nintendo, headquartered in Kyoto, has experienced a significant decline in profits as sales of its Switch console slow down, leading the well-known video game company to revise its annual financial projections. The creator of the iconic Super Mario franchise announced on Tuesday that it recorded a profit of 237 billion yen (approximately $1.5 billion) for the period from April to December, which marks a 42% decrease compared to the equivalent timeframe last year.

During the nine-month period, total sales also saw a decrease of 31%, amounting to 956 billion yen (around $6 billion). Nintendo did not provide a breakdown of its quarterly performance in its reporting.

With the decline in sales, the company has lowered its profit forecast for the fiscal year ending in March, now expecting a profit of 270 billion yen ($1.7 billion), adjusting down from its earlier estimate of 300 billion yen ($1.9 billion). The sales of Nintendo hardware for the nine months plummeted to 9.54 million units, a sharp decline from the previous year’s figure of 13.7 million units sold.

Nintendo anticipates selling 11 million units of the Switch for the entire fiscal year, which is a revision downward from the initial estimate of 12.5 million. Additionally, game software sales in the same April-December period fell from 164 million copies to nearly 124 million. Nonetheless, the game “Super Mario Party Jamboree” has retained its popularity, achieving sales of 6.17 million units. The most recent game in the “Legend of Zelda” series also did well, selling 3.4 million units worldwide since its launch in September.

Despite the decreased demand for the Switch, now entering its eighth year since launch, Nintendo stated that it is still appealing to a considerable number of users, with the total count of Switch players surpassing 100 million.

Nintendo is optimistic about its forthcoming console, known as the Switch 2, expected to be released later this year. The company is organizing various events globally starting in April to allow consumers to experience the new device firsthand.

Furthermore, Nintendo is looking to boost engagement through the opening of the Super Nintendo World amusement park, set to debut in May at Epic Universe in Orlando, Florida, which they hope will attract more fans to their brand.