Nintendo is finally ready to switch things up (literally). With outliving the trends, console wars and our controllers (RIP to all the joy-cons lost to drift), the Nintendo Switch has had a legendary run. With the fading sales and whispers of the next-generation console getting louder, it seems that Nintendo is finally ready to pass the baton.
Japan’s Nintendo has revised its full-year sales forecast for the Nintendo Switch, reducing expectations by 12% to 11 million units. As the ageing console is walking its last miles in the life cycle, the company is preparing for the launch of its next-generation device, expected later this year.
Nintendo maintaining the standard:
Despite expanding into theme parks, films, and retail stores, Nintendo remains primarily reliant on its console business. While hardware and software sales have remained relatively strong in the Switch’s eighth year, meeting sales expectations has been proved as a challenge for the company. As Nintendo President Shuntaro Furukawa acknowledged at an earnings briefing and said that, “While we think sales of hardware and software are solid for the eighth year, we did not achieve our plan“.
Initial sales projections were not met. Nintendo sold 9.54 million Switch units between April and December, putting lifetime sales of the console at an impressive 150.86 million units. As the excitement and expectation is growing for the much anticipated Nintendo’s next console, the demand for the current model is somehow naturally falling.
Preparing for the future:
Nintendo’s profits might be down, but their ability to make us buy the same game on a new console remains undefeated. The next-generation console will be revealed this year by Nintendo, with an entirely dedicated event to “Nintendo Direct” that is scheduled for April 2, 2025. The upcoming console, nicknamed “Switch 2” by analysts and fans, is expected to carry through with the hybrid concept that became paramount in reviving and sending Nintendo’s fortunes back up after the Wii U slapped it down and made it an underwhelming Wii U era.
Nintendo has revised and lowered its operating profit estimation to 280 billion yen ($1.8 billion) after the declining hardware sales, cutting it by 22.2% for the financial year ending in March. The company reported a decline of 46.7% in profit during the April-December period, totalling 247.6 billion yen.
As the Switch successor is on the radar, it is indeed a pivotal year for Nintendo. While the company is under financial pressure because of the declining sales of the Switch, the upcoming console launch has the potential to revive the company’s hardware business and flourish in a new era of success. All eyes are now on April 2, when Nintendo is expected to outline its vision for the future.
Read More: Dialing into the Future; Nokia and AT&T’s Multi-Year Expansion Agreement
