Nintendo’s latest earnings report is out and sales of the Switch console have plummeted after the Switch 2 rumors and announcement, exactly as you’d expect. Switch sales are now projected to hit 11.0 million for the year ending March, down from 12.5 million units forecasted.

Nintendo is gearing up for the Switch 2’s launch sometime in 2025, and president Shuntaro Furukawa says that the company is “taking risks and proceeding with production so that we can meet as much demand as possible,” according to a machine translation of an earnings Q&A.

Nintendo’s profits tumbled as sales of its Switch console lost momentum, prompting the Japanese video-game maker to lower its full-year forecasts