Nintendo has announced that it expects a decline in sales of its aging Switch console for the third consecutive year. The company forecasts sales to drop to 15 million units by March 2024, marking a 17 percent annual decrease. Despite supply chain issues easing and its games lineup strengthening, demand for the seven-year-old console is slowing down.
Nintendo Acknowledges Slowing Demand for Switch
Nintendo President Shuntaro Furukawa acknowledged that it is difficult for Switch hardware and software sales to maintain the same pace, given the console’s age. However, Furukawa still believes there is room for new users to adopt the hybrid home/portable device. With sales slowing down, investors are looking towards a potential successor for the device, which has sold over 125 million units.
Switch 2 or New Hardware Launch Unlikely This Fiscal Year
According to Serkan Toto, the founder of Kantan Games consultancy, the launch of a Switch 2 or entirely new piece of hardware can be ruled out this fiscal year, based on Nintendo’s guidance. This has put investor attention on the company’s potential successor to the Switch console.
Nintendo’s Roster of Characters Diversifying Beyond Core Console Business
Nintendo’s characters have recently proven to be a hit, as The Super Mario Bros. Movie has been a surprise box office success. This has allowed the company to diversify beyond its core console business. Furukawa noted that the movie’s success has exceeded expectations. Additionally, The Legend of Zelda: Tears of the Kingdom, one of the most anticipated games of the year, is set to launch on Friday, and orders for the game are progressing well.
Nintendo has forecasted a decline in sales for its aging Switch console for the third consecutive year, with sales predicted to fall to 15 million units by March 2024. Despite acknowledging the slowing demand, the company still believes there is room for new users to adopt the hybrid home/portable device. However, investors are eagerly anticipating a potential successor to the console. The success of Nintendo’s characters, as seen in The Super Mario Bros. Movie, has allowed the company to diversify beyond its core console business. The launch of The Legend of Zelda: Tears of the Kingdom is expected to be successful, as orders for the game are progressing well.
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